Layoffs are growing and the gap with hiring reached its worst moment since 2020

Layoffs are growing and the gap with hiring reached its worst moment since 2020

A report from the consultant PxQdirected by Emmanuel Alvarez Agisshowed that The gap between dismissals and incorporations of personnel reached its worst moment since 2020 in March 2024, when the economy was deeply paralyzed by the Covid-19 pandemic. Recent layoffs and low optimism regarding the rebound in economic activity had a marked impact on employment.

According to PxQ analysis based on data from the Labor Indicators Survey (EIL) of the Ministry of Labor, the “exit rate” employment was 2.1 percentage points above the average of the last decade, while the “entry fee” It was 2.6 points below the average.

Employment gap

Source: PxQ consulting firm based on the EIL of the Ministry of Labor.

“It is something very typical of the dynamics of the economic crisis, a behavior similar to that of the beginning of 2018,” he said. Luis Camposresearcher at the Institute of Studies and Training of the CTA – Autonomous.

Although in the last quarter of 2023 the rate of unemployment reached a historic low of 5.7%, the next official data from the INDECwhich will be announced on June 24, show a deterioration in the indicator as a consequence of the deliberate policy of layoffs in the public sector and recession which hits almost all sectors of the economy and translates into layoffs in the private sector as well.

Sales fall almost 10% annually

In March there was a 9.3% year-on-year drop in real supermarket sales. The most affected items were by far electronics and clothing, with drops of 34% and 26%, respectively, this being a true reflection of the first consumption that the population usually cuts in times of crisis. Even so, there were also drops in essential products such as fruits, vegetables and meat, while dairy sales barely rose 2% annually.

More recent data, released by the Argentine Chamber of Medium Enterprises (CAME), recorded a 7% annual decline in retail sales for April. For this indicator, the most pronounced declines were observed in perfumery (-23.3%) and pharmacy (-18%).

Economic activity at pandemic levels

The lower purchasing power of the population and the collapse in consumption are correlated with a sharp drop in economic activity, which reached its worst level since May 2021.

In the first quarter of the year, the three most relevant sectors of the economy; Commerce, manufacturing and construction presented contractions of 10.8%, 13.4% and 23.3%, respectively, compared to the same period in 2023.

Regarding the industry in particular, March showed an annual drop of 21.2%, the most significant since May 2021. Steel, textile and electronic products production are the most affected by the context.

Source: Ambito

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