The deepening of the economic crisis since the arrival of the Government of Javier Milei caused job losses in both the public and private sectors. In that context, The amount of unemployment benefits in May 2024 was more than 60% higher than in 2023.
According to a report from the Public Policy Observatory of the University of Avellaneda (UNDAV)in the fifth month of the year, 104,353 benefits, while last year’s monthly average was 64,596. For the entity, the increase in unemployment (which will be better quantified next Monday based on official INDEC data) is the result of the lethal combo for consumption and economic activity that the devaluation, the cutting of public works meant and the abrupt adjustment of public spending.
The latest data from the Ministry of Labor indicated a loss of more than 95,000 registered salaried jobs in the private sector and 26,700 in the Statebetween November and March.
The most affected sector in terms of employment was construction, with a drop of 55,800 jobs as a consequence of the elimination of both national and subnational public works, within a framework of sharp reduction in transfers to the provinces.
“Perhaps the measure that generated the greatest disruption in the private sector was the elimination of public works.. In this sense, between March 2024 and November 2023, the number of workers in the construction sector decreased by 12.7%,” UNDAV noted.
The policies carried out by the Executive Branch implied a great contraction in the purchasing power of workers and retirees, which had a notable impact on consumption levels. This, added to lower public spending and the caution of private investors, generated a collapse in aggregate demand, causing in turn a wave of voluntary retirements, plant stoppages and reductions in working hours by companies.
Due, The economy collapsed 8.4% annually in March (latest data available), with construction, manufacturing and commerce being the most affected sectors.
Promptly, the industry contracted 16.6% in Aprilparticularly highlighting the falls in the production of construction inputs, steel, agricultural machinery, household appliances and textile products.
Source: Ambito
