MONTEVIDEO, Sept. 8 (Xinhua) -- Uruguay's labor market is starting to show signs of recovery, with a slight drop in the number of people receiving unemployment benefits in the wake of the COVID-19 pandemic, Minister of Labor and Social Security Pablo Mieres said on Tuesday.
The number of people receiving unemployment benefits fell in August by about 38,000 people, to about 109,000, a figure that is still "high" but "lower" than it was in March, when the impact of pandemic lockdowns began to be felt, Mieres said at a press conference.
"We saw the peak (of the subsidy) in April and May, and in June it began to decline. In July it dropped significantly and again in August there was a significant decline," he said.
The figures marked a trend that "signals a significant reactivation" in economic activity, he said.
The sectors with the highest rate of unemployment were retail commerce and tourism, he added.
The government expects the country's economy to shrink 3.5 percent in 2020 due to the pandemic, but see a rapid recovery in 2021 with 4.3 percent economic growth. Enditem
