Report: Argentina has lost 142,000 jobs since last October
While some regions manage to stay afloat thanks to investment in key sectors, others are in a deep crisis due to the fall of consumption.
Between the seven months from October 2023 to May 2024, Argentina faced the loss of 142,000 formal jobs. This phenomenon shows the gravity of the recession, but also the disparity in the economic recovery among the different provinces of the country.
According to a report by consultancy Econviews based on data from the SIPA Argentine Integrated Social Security System, the private sector was most affected, with the loss of 132,000 jobs.
Within this sector, construction heads the list of activities most harmed, with a reduction of 73,000 formal jobs: “Construction, which is historically pro-cyclical, has been especially hit by the recession, which was made worse by the halting of public works”, highlighted the report, which underlines a 31.4-percent fall, overtaken only by the 2001-2002 crisis and the pandemic.
The manufacturing industry was also severely hit with the loss of 25,000 jobs in the same period. Factors such as the foreign exchange appreciation, fall in consumption and the modifications of the PAIS tax have all contributed to a gloomy outlook for this sector, where the import of finished supplies and goods competes directly with local production.
Despite the widespread crisis, some sectors managed to create employment. The agricultural sector has generated 11,000 new wage-earners since October 2023. Mining and oil also show growth, though its involvement in total employment remains limited. Ever since 2021, when restrictions for the pandemic started to ease, these sectors have increased by 12 percent in terms of employment, driven by key investments.
The dynamic of employment varies considerably among provinces. The ones who have lost most formal jobs over the last six months were:
Formosa: -11.4 percent
Tierra del Fuego: -10.9 percent
La Rioja: -9.1 percent
Santa Cruz: -7.8 percent
Buenos Aires: -2.5 percent
Santa Fe: -2.5 percent
Córdoba: -1.7 percent
CABA: -0.8 percent
Mendoza: -0.3 percent
By contrast, such provinces as Neuquén and Salta recorded a slight growth in the number of jobs, at 0.2 percent and 1.6 percent respectively. In addition, they have experienced a 25.8-percent and 10.4-percent increase in employment over the last five years respectively, thanks to investment in the oil, gas and mining sectors.
They expect this situation to be repeated with the implementation of the RIGI Big Investment Regime in provinces of the rest of the country to attract investment and encourage internal consumption, which are factors that will define the pace and scale of recovery of employment over the next few years.
--TIMES/NA