He average wages rose 8.3% in Mayas reported by the National Institute of Statistics and Census (INDEC)and was above the inflation (4.2%)for the second month in a row. In any case, in the government of Javier Milei, Salaries still lose an average of 13.1% in real terms (between November 2023 and May 2024) of purchasing poweras estimated by the Center for Political Economy (CEPA).
In the first five months of the year, the average salary also rose. 73.6% and also beat the Consumer Price Index accumulated between January and Maywhich was located in the 71.9%.
If you consider the real year-on-year change in wagesa fall in the 22.3% in the public sector, 8.1% in the registered private sector and 32.3% in the unregistered private sector. “These last few workers are the ones who have lost the most purchasing power in recent years”said the economist Nadin Arganaraz.
In this regard, the chief economist of the Freedom and Progress Foundation, Eugenio Maristated that between 2022 and 2023 this sector lost 41% purchasing power.
Salaries in the Milei era: sector by sector, how much they increased
He registered private sector obtained an increase of May 7.7%, Meanwhile he public a 8.3% and the not registered a 11.8%, the latter being the one who won the most Monthly CPIHowever, in the accumulated variation, the state and unregistered workers remained 5.2 and 16.4 percentage points (pp) below the inflationrespectively.
“Two consecutive months have seen significant wage increases above inflation”the Treasury Palace said regarding the data.
Despite beating inflation, Salaries are unable to recover from the inflationary peak of December (+25.5%), which squandered the purchasing power of workers. So much so that the salaries of the unregistered sector are still 22.7 pp below those of November 2023while The public is 18.4 pp and those registered a 6.5 pp
“The slowdown in inflation in May (4.2%) gave wages the opportunity to recover a little from the previous inertia. But all the series are in an ‘L’,” he assured Scope, Hernan Letcher.
The Minister of Economy, Luis Caputohighlighted on his official X account (formerly Twitter) that “the general level of wages rose by 4% in real terms” and made a comparison of the evolution of the assets of different indicators.
For his part, the economist and researcher at the Institute of Studies and Training of the CTA – Autónoma, Luis Campossaid that “in a scenario of falling inflation, it is expected that real wages will recover.” Although, he was skeptical about the possibility of this being sustained in the medium term.
Source: Ambito
