“The salary of registered workers measured by the RIPTE lost against inflation in July (5.3% vs. 7.4%). It fell back below December 2019 levels. The year-on-year variation was negative again: 1.4% against July 2021”, said the cCoordinator of the Social Law Observatory of the CTA, Luis Campos.
Campos indicated that “the new fall in real wages occurs within the framework of an acceleration of the price-wage race” and said that inflation is already “around 70% year-on-year, and in the coming months it will continue to grow” . “Without anchors in sight, the scenario for the coming months is not at all clear,” warned the CTA technician.
In July, the Prices Care program, which is the main one that the government has active to appease prices in a disorderly context, only had an impact on 5% of the CPI, according to INDEC data.
The inflationary jump in July is linked to the departure of Martín Guzmán from the Ministry of Economy, and his replacement by Silvina Batakis who was only 24 days in office with strong uncertainty around a potential devaluation that took the blue dollar to record $350.
raise employment
According to data from the Center for Production Studies (CEP-XXI), the industry reached a total of 1.22 million workers in the first half of the year, which represents the highest level in four years. In this way, it has recorded 26 consecutive months of registered job creation and exceeds the positions of December 2019, the pre-pandemic period, by 86,000.
Meanwhile, the latest IDEA Executive Expectations survey reveals that only 19% of the main companies in Argentina plan to increase their staff in the next six months. 47% will remain unchanged while 34% plan to reduce.
For some economists, the combination of the increase in formal employment with the fall in real wages is explained by the fact that the market is adjusting by price instead of quantity. In Argentina, the average salary of the registered sector of the economy is only US$528 dollars measured at the Cash with Settlement exchange rate, and it is barely above the so-called poverty line measured by INDEC. The Total Basic Food Basket for a typical family of two young adults and two children was $111,298 last July.
Source: Ambito
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