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Salaries rose slightly in April, but have accumulated a real drop of 14% in the Javier Milei era

Salaries rose slightly in April, but have accumulated a real drop of 14% in the Javier Milei era
Salaries rose slightly in April, but have accumulated a real drop of 14% in the Javier Milei era

The salaries of registered private sector beat inflation in Aprilbut they lost the public and informal ones, as reported this Wednesday, June 26, by the National Institute of Statistics and Censuses (INDEC).

The monthly growth is due to nominal increases in 12% in the registered private sector, 7.5% in the public sector and 7.8% in the unregistered private sector. Let us remember that in the fourth month of the year, the CPI stood at 8.8%.

For April, The wage index accumulated an increase of 60.3% compared to December of the previous yeardue to increases of 68.5% in the registered private sector, 54% in the public sector and 39.1% in the unregistered private sector.

In that same period of time, Accumulated inflation was 65%, so salaries lost in all categories.

“The drop against November 2023 is 13.9%. Since the end of 2017 the decline has exceeded 30%”expressed Luis Camposresearcher at the Institute of Studies and Training of the CTA – Autonomous, from his account on X.

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The expert also said that in these months The salary decline was much more marked in the public sector (-21.5% compared to November 2023) and lower in the private sector (-9.6% versus November). “Compared to the end of 2017, the falls exceed 40% and 25% respectively”broad.

Salaries: how is their relationship with annual inflation

The Economist Nadin Argañaraz explained that, taking into account a year-on-year inflation of 278%, the real variation in salaries shows a generalized fall: those in the public sector fell by 24.7%; Those in the registered private sector lost 10.7% and those in the unregistered private sector fell 39.5%. “The latter is the one that has lost the most purchasing power for years”he added.

Salaries: how were those registered, public and in black

With respect to registered private salary, Claudio Caprarulo, director of Analytica, considered that “is the best data since Milei took officealmost 3% monthly recovery”.

“That widened the gap with the public sector, because in that segment it fell 1.2%. Thus, if we compare with November, the former lost 9.5% of their purchasing power, while the latter lost 21.5%.“, broad.

For its part, Tobias Pejkovich of Facimex, detailed: “Salaries in the registered sector grew 10.5% monthly in April, which is equivalent to a 1.5% monthly increase in real terms. Despite the improvement in the margin, they fell 15.9% annually and accumulated a decrease of 17.2% in the first quarter of the yearalways in real terms”.

In greater detail, he said that “it is interesting to note that the drop is much more pronounced in the public sector (with a decline of 24.3% in the first four months of the year) than in the registered private sector (with a decline of 13.2% during the same period)”.

“Moving forward, I think we’ll see a slight recovery in real wages in the second quarter, induced by the inflationary slowdown, which in turn would facilitate a slight rebound in activity,” he concluded.

Source: Ambito

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