The reality, however, is not the same for all sectors. While the private sector registered in October saw an increase of 5.3% (accumulate an increase of 72.7% in the year and 83% year-on-year), in the public sector it was 6% (72.7% in ten months and 82.2% year-on-year) and in the unregistered private sector, 3.1% (54.6% so far this year and 70.7% year-on-year).
“So far this year we can see a drop in real wages of 4% at a general level. Now, if we analyze from the different sectors, we see that in the case of the unregistered private sector the drop is 12.48%, Meanwhile he registered sector presents a drop of approximately 2.23%”, they analyzed from the ACM consultancy.
“The purchasing power of wages accumulates a fall of 24.9% compared to November 2017, the last ceiling. For their part, informal workers are the most affected with a cumulative loss of 39.7%, double that assumed by registered workers (19.7%),” they pointed out from LCG.
How would I close the year?
“The data for October indicated that wages were almost 8 percentage points below the inflation rate for that month.. Taking into account that the estimated inflation for 2022 is at 95%, the salary index will have to show an accumulated rise of 15 points in order not to fall below the price level,” he told Ambit Lautaro Moschet, economist at the Libertad y Progreso Foundation.
“It is possible that, due to the parities that have been negotiated in the last weeks of the year, many unions reach agreements that even exceed inflation in 2022. Such is the case of teachers in Buenos Aires, who have achieved an increase of 103.2% (annual average). Although other similar cases can be found, it must be taken into account that there is a large percentage of workers who are in the informal sector. As indicated by the salary index published by INDEC, the income of these individuals has been losing more significantly (18p.p. vs. October inflation). Given the lower bargaining power, It is truly difficult for this sector to close the year without a loss of purchasing power”Moschett added.
“In summary, the situation of registered public and private sector workers, can on average end the year in line with inflation. However, the informal sector will push the index down”, concluded the economist.
“I would say that the drop in inflation in recent months may allow us to recover what was lost in the year, and perhaps remain slightly above inflation, but in general terms the level of wages for private registered employment will be at values similar to those at the end of last year and I would say that at the end of 2019”, explained Hernán Letcher, director of CEPA.
In the case of wages in employment not registered, the drop is very significant. In fact, in this last month, inflation practically doubled the figure of the increase in nominal income”, remarked Letcher.
“We expect inflation to close at around 95% annually in December, while wages would remain slightly below (-0.2%). In this sense, although in the annual average we estimate that wages will remain at levels similar to those of 2021 in real terms, the escalation of prices would mark a more noticeable drop in the annual measurement (Dec/Dec), close to 6 % real for the registered sector of the economy”, they analyzed for their part from LCG.
“Despite the slight improvement in the face of inflation seen in September, the inflationary acceleration prevents a substantial increase in wages. It is to be expected that for the last two months of the year the perspective of purchasing power will not improve and will continue to present falls in real terms”, they remarked in both from ACM.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
