The poverty reached the 30% of workers in a dependency relationship, with retirement discount, social work, bonus and paid vacations; while among the “precarious wage earners” exceeds 70%according to the report “Poverty, income distribution and occupational classes” by Eduardo Chavez Molina and José Rodríguez de la Fuente, of the Gino Germani Research Institute (IIGG) of the UBA.
“One of the most important findings is the growing presence of ‘poor workers’, who, despite being employed, are unable to overcome the poverty line,” the report highlights.
It is estimated that almost 3,000,000 workers in a dependent relationship are in poverty.since all the workers registered according to the last Permanent Household Survey (EPH) is 6.2 million and extrapolated to the total population is 9,943,921. “This shows that formal employment, although it provides some protection, is not enough to mitigate the impact of the crisis”they highlighted.
Another almost 4 million people who belong to the “precarious wage earners” are also below the poverty line and cannot cover the basic basket..
Poor dependent workers due to loss of purchasing power
Poverty reached 52.9% of Argentineswhile the destitution affected the 18.1%as reported by the National Institute of Statistics and Census (INDEC). Extrapolated to the total population, this implied that some 24.8 million of Argentines are in conditions of povertywhile another 8.5 million are destitute. The report also highlights that two thirds of children and adolescents are poor (66.1% of the total).
The increase in poverty in recent months, according to the report, was driven by the fall in purchasing power in the sector of registered workers, whose salary increases have not kept pace with inflation.
“When analyzing the relationship between poverty and hours worked, The increase in the percentage of regulated workers who are poor stands out, especially the overemployed.whose number has grown by approximately 20 percentage points, while those fully employed and underemployed have increased around 15 percentage points,” they highlighted in the report, which suggests that having more working hours does not guarantee better economic conditions.
Income transfer
He Gini coefficient grew from 0.417 to the 0.436 in the second quarter compared to the same period in 2023, as reported this Wednesday by the National Institute of Statistics and Censuses (INDEC). This increase indicates a significant worsening of income distributionwhich reflects a level of inequality unprecedented in recent years. Even 60% of the employed population earned less than $450,000 between April and June.
“The magnitude of this data not only highlights the growing imbalance between the richest and poorest sectors, but also points out the failure of economic and social policies to reverse or at least mitigate structural inequalities in the country“they highlighted in the report.
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When delving deeper into the impact of poverty, it is observed that in the different economic segments it grew hierarchically, although among the most vulnerable sectors, of unskilled and manual workers, it exceeded the 65%. In these classes, by 2024, poverty affects almost 7 out of 10 people.
Among non-manual workers in large establishments and owners or managers of small businesses, poverty tripled in just seven years.
Source: Ambito
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