The government eliminated more than 41,142 charges in one year and cut US $ 448 million

The government eliminated more than 41,142 charges in one year and cut US $ 448 million

According to an official report from the Ministry of Deregulation, the measure represented a decrease of 8.2% of state personnel and saving more than US $ 4,000 million.

Mariano Fuchila

The government reduced more than 40,000 jobs in it National Public Administration Sector (APN), Between December 2023 and January 2025. This measure represented a decrease of 8.2% of state personnel, according to official figures.

The APN, which was one of the few sectors with growth in employment during the last decade in Argentina, It suffered a reduction of more than 23,000 jobs. As a result, the Ministry of Deregulation by Federico Sturzeneggerindicated that with these cuts the state saved US $ 4.548 million.

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The APN suffered the biggest staff cuts

The APN suffered the biggest staff cuts

Chainsaw in public employment: which sectors had greater dismissals

Between December 2023 and January 2025, The 8.2% reduction in public sector personnel, equivalent to 41,142 jobs, comes from different sectors. When the data broken down, the falls in the National Public Administration (APN) and the state companies stand out. In this period, the APN reduced its staff by 11.5%, while in state companies the decrease reached 14.4%.

Number of jobs in the APN sector by hiring mode

Until the end of January 2025, a decrease in different forms of hiring within the National Public Administration (APN). The number of permanent and transient plant employees was reduced by 5.4%, While the workers hired under the Framework Law (Law 25,164) and those with Loys contracts (monotributistas according to Decree 1109/17) experienced more significant falls, with decreases of 17.9% and 63%, respectively.

Between December 2023 and January 2025, the reduction of personnel in the APN allowed a long -term projected saving of US $ 4,548 million, which is equivalent to an estimated monthly savings of approximately US $ s349 million. The highest expenditure reduction occurred in the Contracts regulated by the Framework Law, with an estimated savings of US $ 2,074 million. In the case of permanent and transient plant personnel, the savings reached US $ 1,708 million, while the elimination of Loys contracts represented a saving of 766 million dollars.

To calculate the projected total savings, The average weighted salary of January 2025 was used according to each type of contractingbased on data from the quarterly occupation and salaries report. First, the weighted average salary was determined in each category of employment according to the distribution of workers in the different salary ranges. Then, the annual salary for each group of employees was estimated, it became dollars and multiplied by the number of disconnected during the analyzed period, thus obtaining the annual savings derived from these cuts. Finally, the concept of perpetuity was applied to estimate the present value of future salaries that will no longer be paid, using a 10%discount rate.

Finally, the Government indicated that: “This measure reflects the government’s commitment to the reduction of public spending and its determination to comply with the promises of efficiency and austerity in public administration.” In turn, he anticipated that layoffs will continue: “The strategy will be deepened this year with greater personnel reductions and the elimination of areas that do not meet an essential mission. ”

Source: Ambito

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