22,000 JOBS LOST.

The island's total employment level fell in December 1998 by 22,100 jobs to 961,300, with notable decreases in the areas of services and manufacturing, according to the Department of Labor and Human Resources survey of company payrolls, reports The San Juan Star (January 27, 1999): "That's a really big drop," says economist Vicente Feliciano of Advantage Business Consulting. "An economy that is growing at about 3% a year should be generating jobs -- not a lot, but some"; Services, which includes tourism, fell by 5,000 jobs to 188,100, in comparison with the December 1997 figure. Manufacturing dropped 6,100 jobs, down to 141,900. "There are hardly any new manufacturing promotions in Puerto Rico," says economist Mohinder Bhatia. "There are some expansions, but not enough to offset the lack of promotions due to the loss of Section 936"; Government is still by far Puerto Rico's largest employer. But Gov. Pedro Rossello's promise to cut the public payroll appears to be coming to fruition. Government chopped 8,600 jobs, down to 297,100. The largest drop was in the Central Government, which shrank by 7,300 jobs. The report data clashed with an earlier Government report, based on household surveys, showing that Puerto Rico's unemployment rate in December 1999 fell to 11.1%, vs. 13.1% the same month in 1997. The survey showed that, for December 1998, a record total of 1.18 million were employed, up 56,000 from the year before. Both surveys agreed the employment in manufacturing had declined, but the household study reflected gains in service and Government jobs.