The level of unemployment in Uruguay is low compared with many other nations in the region, but this is causing fears about talent gaps.

According to reports in the local media, the number of people out of work currently stands at 6.1 per cent, a record low for the nation.

Bernama-NNN-Mercopress claims the nation's economists are concerned falling rates of joblessness could impact upon growth by causing talent shortages in some sectors such as construction and engineering.

Labor migration may be looked at as one way of addressing the problem of attracting experienced employees to roles, particularly as Uruguay has witnessed annual growth rates of more than 6.5 per cent in recent years, pushed up by overseas investment.

CFA Ferrere economist Alfonso Capurro told the local press: "Businesses are starting to be unable to find workers, it is complicated to find workers in Uruguay, not just skilled ones, but people who really can do the work."

Other Latin American nations have reported strong employment growth in recent months, including Brazil, with Reuters reporting Labor Ministry figures indicating more than 2.5 million jobs were created in the nation during 2010.

Posted by Kate Griffin