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80% of Argentines are dissatisfied with the salary adjustments they received

80% of Argentines are dissatisfied with the salary adjustments they received

Argentines have felt the impact on their pockets since last year and a survey shows that the vast majority are not satisfied with their salaries.

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In a context of inflation and recession, within the framework of the adjustment of the economy carried out by the government of Javier Milei, the salaries of formal workers collapsed 14.9% in the last semesteraccording to a report published by the Research and Training Center of the Argentine Republic (CIFRA). Argentines have felt the impact on their pockets since last year and a survey shows that the vast majority are not satisfied with what they earn.

After the devaluation of December 13 that led the dollar to jump 118.3%, raising it to the 800 peso area and the subsequent flash of inflation, workers’ income was severely hit during December and January. During January, the real fall in wages had reached 21.3%, being even more significant in the lower classes with the sharp jump in food and beverages, one of the most sensitive items that during the last month of 2023 and the first two of 2024 accumulated an increase of more than 65%.

After that two-month period where income did not react to the speed of prices, according to the CIFRA report, the recession worked as a brake on price increases. “In this framework, some joint negotiations were able to recover part of what they had lost, which is shown on the average as a minimal relative rebound,” he explained.

The loss of purchasing power was felt stronger in the public sector, where there was a drop of 21.3% compared to a private sector that had a drop of around 11.2%, giving the average for the semester 14.9%. . In the same line, the Minimum salary, vital and movil suffered an even greater drop, reaching an alarming 28.8% between November 2023 and May of the current year.

Analyzing back to the beginning of Alberto Fernández’s Government, compared to November 2019, the real income of formal workers fell by 24.2% (and 32% measured in food); those in the public sector contracted almost 30% while those in the private sector contracted by 20.9%.

A report from global recruiting company PageGroup notes that 79% of professionals consider that they received an insufficient adjustment against inflation during 2023. 51% are dissatisfied with the salary and 63% consider this dissatisfaction as the main reason for actively seeking a new position.

According to Miguel Carugati, Managing Director Argentina & Uruguay of PageGroup, “this disparity highlights the difficulty that companies face in meeting the salary expectations of their employees in a complex economic context. That is why it is crucial to offer competitive salary packages aligned with labor market expectations.”

Source: Ambito

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