The President of the Government said today that unemployment in the Region is experiencing a period of "adjustment,” hence its "significant increase"; however he admitted that the situation will be reversed soon.

Carlos César explained that "this is a difficult period of adjusting the entrepreneurial capacity to the market potentialities and the bank funding capacity," stressing that this adjustment "is being carried out abruptly, particularly in the construction sector, restaurants and small trade.

The President of the Government added that the ongoing adjustment is "near stabilisation" and assured that unemployment in the Region "will not grow and will even drop" this year.

Carlos César reminded that before entering into office in 1996, the Azores had registered "26 quarters with unemployment rates above the national average" while, ever since, this situation "has only happened in the third quarter of 1998 and now."

According to the President of the Government, the situation mainly affects the construction sector, where "the lack of bank credit has posed difficulties for current management and the restructuring of companies."

Carlos César reiterated that "there is a mismatch between companies and public and private investment strategies." Moreover, the government official said that the severity of the problem rose with the "measures implemented" nationwide, which "reduced the income and internal consumption, bringing negative consequences to companies."

The President of the Government spoke to journalists at the end of an audience granted to the board of the Immigrant Association in the Azores (AIPA) that took place at Sant'Ana Palace. Unemployment and its impact on the immigrant community in the Azores was the main subject under discussion at this meeting.

The board of AIPA also conveyed to Carlos César that the association's role in the integration of immigrants in the Azores was only made possible with the support of the Regional Government.