Almost 10,000 private companies have closed their doors since last November due to the ongoing economic crisis, a new report has found.
Over the same period – lasting six months, November 2023-May 2024 – more than 260,000 registered jobs have been lost, with large firms generally laying off more.
The study, released by the Centre for Political Economy (CEPA) think-tank, indicates that activity across all industries was down 16.5 percent in the first half of 2024 compared to the same period of the previous year.
Excluding the Covid-19 lockdown of 2020, activity was at its lowest in nine years.
CEPA’s data is based on information published by the SRT Superintendency of Occupational Hazards, which records data from workers and employers. It shows all industrial sectors surveyed reduced their use of year-to-year installed capacity in June 2024.
The main collapse was found in the auto industry (down 39.9 percent) and production of tobacco and related products (down 37.7 percent).
Use of installed industrial capacity was 54.5 percent: nearly identical to June 2020, in the middle of the pandemic (53.3 percent).
Drop in registered workers
The drop in activity has been matched by the loss of more than a quarter of a million registered jobs since last November, said CEPA.
The report indicated that those most affected by the economic downturn were companies with up to 500 workers, with 9,927 fewer companies seen in May 2024 compared to last November. Of those with less than 500 workers, there were an additional 45 firms lost.
However, the firing or laying off of jobs was greater at larger companies – 70 percent of those let go (186,357) were employed by firms with more than 500 workers.
The report observes that in May, 9,101 salaried jobs were lost in the private sector. The destruction of a further 12,498 jobs is expected for June.
Unlike previous months, the majority were not lost in construction but in manufacturing.
Makro sell-off
The recession’s impact on the economy can be seen in a number of high-profile departures. The latest is wholesaler and low-cost retailer Makro, which announced this week that it is leaving Argentina and putting its 24 branches up for sale.
The company, owned by Dutch group HSV, has hired an international bank to assist its departure and started negotiations with potential buyers, including players in the wholesale business and other supermarket chains.
Makro’s assets in Argentina are said to be worth around US$200 million. The firm is active in 10 provinces and competes with several other national chains, including Maxiconsumo, Diarco, Vital and Yaguar.
The chain had started operations in Argentina in 1988, with a supermarket in Olivos, in partnership with businessman Francisco de Narváez, who at the time controlled the Tía chain.
Makro had already reduced its presence in Latin America, divesting itself of operations in Peru, Venezuela and Brazil.
– TIMES/NA
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