In relation to unemployment, taking the latest INDEC data, it can be seen that 31.8% of the unemployed remained under that condition for more than a year. 22% of the unemployed report that they never had a previous formal job. This highlights the Argentine labor market: a greater trend towards informal employment and a slight growth in formal jobs.
An overview was produced in a latest report from the Ministry of Labor. In July 2021, according to the information that emerges from the records of the Argentine Integrated Pension System (SIPA), the number of workers with registered salaried employment in the private sector grew 0.1% (variation without seasonality). This information implies that 4.7 thousand people joined the salaried employment registered in private companies.
The growth of the total number of formal workers is mainly explained by employed persons in the monotax regime, which presented a monthly increase of 2.3% in July. The rest of the modalities showed moderate variations (positive or negative). The evolution of salaried employment in the private sector registered a growth of 0.1%, salaried employment in the public sector also grew 0.5% and the social monotax contracted by 0.3%. For its part, the number of private household employees fell 0.2% and self-employment only fell 0.7% according to official data.
SME entrepreneurs point out that three of the main problems in creating “blank” jobs are high contract wages, social security charges and severance pay. However, Moroni denied this claim in dialogue with the Toma y Daca program: “Labor laws do not hinder the labor system.”
A recent report by the Friedrich Ebert Foundation released data that clarifies the situation and why the government wanted to make a change: the almost 4 million people registered in the monotax are equivalent to 64% of registered salaried positions in the private sector. Another fact is that within the monotax, 84% of people belong to the general regime and 16% to the social monotax. It also appears that the people registered in the monotax are equivalent to 22% of the economically active population.
The government will seek to encourage formal employment through two mechanisms. On the one hand, with the confirmation that the AFIP will work on a modification of the monotax and on the other hand, with the law to change “social plans for work” that has two goals: on the one hand, it proposes the reduction of up to 100% of employer contributions for new labor relations for up to 24 months for each employee, considering as a maximum limit the sum equivalent to two minimum wages for each one and with an incremental maximum payroll of 5 to 20 employees.
And on the other hand, in a complementary way, it promotes a scheme for the protection and regularization of precarious work situations, so that MSMEs can regularize existing labor relations and started before the law. Thus, companies will be able to rectify the real remuneration or the real date of commencement of the employment relationship without being able to initiate criminal actions for non-payment of contributions and contributions.
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