After positive variation rates were recorded in private registered employment uninterruptedly between August 2020 and August 2023, Employment declines were verified in September and October 2023. In this way, the recovery process of the formal salaried labor market that began in August 2020 is interrupted.
The joint dynamics of certain sectors led the formal private labor market from a situation of positive variation rates to one of negative rates. In this sense, “It is worth highlighting that Construction stopped growing five months ago and accelerated its decline in the last three months. Added to this is that Hotels and restaurants have remained unchanged in the last two months. The performance of these sectors, which until recently short time were the most dynamic, explains a good part of the change in the current situation of the formal labor market”, the official report highlighted.
“The drop in registered employment is explained by the decline in construction (which started in June) and a relative stagnation in the rest of the sectors. Here we see the main characteristic of the cessation funds: the more rapid adjustment to changes in the economic cycle”Campos remarked.
Registered work by type of occupation
In the month of October 2023, 10,338 million people with registered salaried employment (including private sector, public sector and work in private homes) and 3,038 million people with independent work (monotributistas and self-employed).
The group of people with Registered salaried employment remained unchanged in the last month (3.5 thousand fewer people, which is equivalent to a variation rate of 0.0%). Within salaried employment the dynamics were heterogeneous: The public sector expanded by 0.1%, while the private sector and work in private homes showed a contraction in employment (-0.1% and -0.5% respectively).
Independent work also grew compared to the previous month (+0.4%, 10.6 thousand more workers). This expansion was driven by the monotax and the social monotax (+0.6% and +0.4% respectively), while the amount of people who adhere to the self-employed regime decreased (-1.1%).
The total number of workers with salaried employment expanded by 2.4% (+241.7 thousand workers) in the year-on-year comparison. This increase is mainly due to the expansion of the public sector (+3.2%, 108.5 thousand people) and, secondarily, to the growth of the private sector (+2.2%, 139 thousand more jobs). Work in private homes, on the other hand, showed a drop of 1.2% during the last year (5.8 thousand fewer people).
Finally, independent work as a whole expanded by 6.3% (+179.4 thousand workers) in the interannual comparison. The whole of independent work was driven by the monotax categories (social monotax grew +12.7% and monotax +5.7%). For its part, the number of contributors to the self-employed regime presented a moderate increase (+0.2%).
Registered private employment: performance sector by sector
Employment dynamics were heterogeneous at the sector level. Monthly employment expansion was recorded in seven sectors. In three, employment remained stable; and in four others, a drop was observed.
Among the branches of activity that showed greater monthly dynamism are Exploitation of mines and quarries (+0.5%); Supply of electricity, gas and water (+0.4%); Trade and repairs (+0.3%); and Social and health services (+0.2%).
For its part, Real estate, business and rental activities; Financial intermediation; and Community, social and personal services maintained employment at the same level as the previous month.
The sectors that showed a drop in employment were Construction (-2.0%); Fishing (-1.8%); Agriculture, livestock, hunting and forestry (-0.4%); Transportation, storage and communications (-0.3%).
Registered private employment: evolution by province
At the regional level, in eight of the twenty-four jurisdictions, registered salaried employment grew compared to the previous month, while in two, employment remained stable, and in fourteen it decreased.
Among the provinces that showed growth are Neuquén (+0.6%), Tucumán (+0.4%), Salta (+0.4%), Jujuy (+0.3%), La Pampa (+0.2%).
For its part, In CABA and the province of Córdoba, employment remained stable in the month of October 2023.
Within the group of provinces that showed fall in employment, can be mentioned: Formosa (-1.9%), Entre Ríos (-1.5%), San Luis (-1.3%), Chaco (-1.3%), Misiones (-1.2%), Santiago del Estero (-0.9%), San Juan (-0.9%), La Rioja (-0.7%) and Corrientes (-0.6%).
In the year-on-year comparison, 18 provinces managed to increase employment. Among those that showed the best relative performance, Catamarca (+13.0%), Neuquén (+12.2%), Salta (+5.5%), La Pampa (+4.6%), La Rioja ( +4.3%) and Buenos Aires (+2.7%).
Registered private sector salary
The average salary in the registered private sector grew by 10% in October and beat inflation by a few points. However, “Monthly data with such a nominal value no longer makes sense. In October we were 13% below the 2011-2017 average,” Campos assessed.
The average gross nominal remuneration for August was $469,810 and grew 148.4% with relation to the same month of the previous year. For its part, The median gross compensation was $365,218, and increased 152.3% year-on-year.
“In the short (and medium) term, employment and wages are going to fall. The question is how much and what type of social resistance this process will face.
Source: Ambito
