Job crisis in Argentina: getting a job is increasingly difficult

According to UNICEF estimates, young people are the main victims of employment. The study carried out based on data from the INDEC Permanent Household Survey The first quarter of 2024 shows that the unemployment rate is approximately three times higher among people from 18 to 24 years – reaching the 20.1% – unlike the average of the population that is located in 7.7%.

But the problem does not stop there: among young people who have paid work, Informality reaches 57%, almost double the general average (36%). Besides, Argentina presents the worst job creation expectations in the world for more than a year, while the rest of the region maintains high levels that even exceed the global average.

Unemployment in Argentina: against the world

The report data UNICEF reveal a situation in relation to youth employment that is beginning to alarm. Unemployment rates among this social sector far exceed the average of the population and those who have a job navigate informality.

In this sense, a recent study by ManpowerGroup gives an account of the current problems of the national economy and shows that the Net Employment Expectation (ENE) for the last quarter of 2024 increased by 4%, which actually represents a decrease of 1 percentage point in the quarterly comparison. According to experts, this revealed a stagnation in companies’ intentions to recruit personnel.

In detail, Argentina’s net employment expectation is the lowest in the world. In comparison, the global average is 25%. The countries where the indicator grew the most are: India with 37%, followed by Costa Rica (+36%), the US (+34%) and Brazil (+32%).

To delve deeper into the problem, a report from the CEPA (Center for Argentine Political Economy) shows data that arise from the Superintendency of Occupational Risks, from which it appears that The number of employers that were lost is 9,972 companies that are SMEs. This has a flip side the loss of 265 thousand registered jobs, partly because companies that close and others that reduce personnel in the face of the economic crisis.

The fall in consumption also plays its role in this crisis. In this context, the industrial production fell between 20% and 25% compared to the same period in 2023 and One of its immediate consequences is the fall in employment in Argentina.

The situation goes against the capacity of the Argentine personnel, who stands out for their talent. Luis Guastini, general director and president of ManpowerGroup Argentina and director of Talent Solutions for Latin America assured: “We are the country with the best level of English in Latin America, we have one of the highest rates of university graduates and scientists per inhabitant, and we have developed key technological poles that allow us to compete at a regional level“.

“However, we remain trapped in a instability cycle which puts us at a disadvantage compared to our competitors,” explained Guastini. This imbalance seems to have deepened with a Government whose banner is to carry out a process of correction of macroeconomic variableslike the reduction of the fiscal deficit or inflation.

Despite this, Guastini warned: “He has not yet managed to translate these advances into a sustained growth driven by private investments”

For the director of ManpowerGroup, the recently sanctioned Base Lawwhich introduces the Investment Generation Incentive Regime (RIGI)could be a step in the right direction for attract foreign capital. Despite this, Guastini also noted that no norm can replace trust: “This is not an abstract concept; it is built with transparency, stability and why not, sincerity”.

The fragility of the system

In this context, the director of Talent Solutions for Latin America pointed out that the economic scenario was shaken not only by the pandemic, but by continuous events that showed the fragility of a system that required review. The logistics crisisthe emergence of extreme political movements and more than 100 active armed conflicts around the world, influence a situation that is increasingly delicate.

These issues triggered, according to the expert, a process of productive reconfiguration. Known as nearshoringcompanies relocate their production processes to closest destinationsseeking greater security in supply chains. In detail, six out of ten American companies consider this an essential part of their strategy.

Ford automotive industry auto parts

The automotive industry, one of the sectors that is most committed to nearshoring.

This transformation is led by sectors such as energy, automotive and technology. This relocation from Asia to closer countries positively impacted nations such as Mexico and Brazil, Colombia, Peru and the Central American region.

Nearshoring will add about US$78 billion in annual exports to Latin America. However, almost none of this is reaching Argentina. In comparison, the field exports around US$30,000 million a year and, if all the necessary investments announced in mining and Oil&Gas were made, Vaca Muerta would reach comparable figures only by 2030.