The deep recession that the Argentine economy is going through is already having a direct impact on employment. Between December 10, 2023 and July 4, More than 38,000 preventive crisis procedures were processed. The data comes from an official report to which Ámbito had access. The figure is 40% higher than that recorded in the same period in previous years, According to official sources, the mechanism is used by companies to try to avoid layoffs, but even so, 144,000 jobs were lost in the registered private sector in eight months.
Due to the drop in sales and production, more companies are making decisions about their staff. Some are taking early vacations and partially suspending or laying off staff, and others are filing preventive crisis procedures with the Ministry of Labor.
This last phenomenon has increased significantly in recent months.. According to an official report accessed by Ámbito, from December to July some 38,178 files were processed, The figure represents a 40% growth compared to the same period in the average of the last two years.
In number of companies, they estimate that The portfolio led by Julio Cordero receives about 10 orders per month. The preventive crisis procedure involves a negotiation stage that can culminate with suspensions or even layoffs at a lower cost to companies.
In the last few hours, Tire manufacturer Bridgestone joined the list of firms that initiated the process before the portfolio led by Julio Cordero. Another of the big names in the Fate sector had opened the same path weeks before.
According to the latest official report on registered private employment, the industrial and construction sectors are the hardest hit and the provinces of Buenos Aires, Santa Fe and Santa Cruz are the ones that have lost the most jobs since the arrival of the Javier Milei government.
According to information arising from the administrative records of the Argentine Integrated Pension System (SIPA), in April 2024 Registered salaried employment in private companies fell by 0.2% compared to the previous month. This negative variation implies that around 13 thousand people left formal jobs in the private sector.
Between September 2023 and April 2024, 144 thousand registered employees in the private sector lost their jobs; which implies a reduction of 2.3% during that period. The report highlights that “the current phase already exceeds in duration the contractionary periods verified in the international crisis of 2008, the devaluation of the currency in 2014 and the COVID-19 pandemic.”
However, Secretary of Labor Julio Cordero Julio Cordero assures that in times of recession, unemployment grows much more than in this case and in statements to el Destape Radio he considered that what is happening with the labor market is “practically a miracle.”
Source: Ambito
