According to a report prepared on the basis of official data, registered employment has been growing for 25 consecutive months. However, analysts say that the slowdown in activity could affect the recovery.
The improvements in economic activity in 2021 and 2022 (10% and 5.2% respectively) were reflected in an increase in registered employment. However, this positive dynamic that achieved more than 500,000 new jobs is not being replicated during 2023. Economic uncertainty and the election year are some of the factors that prevent the hiring of new workers. But how is work in 2023?
According to data from Argentine Integrated Pension System (SIPA) collected by the consultancy LCG, in the month of January registered jobs grew by 20,193 (+0.2% m/m) and the public sector another 8,789 (+0.3% m/m).
In contrast, self-employment and wage earners from private homes moved downward. Workers under the Monotributo regime fell by 1,431 (-0.1% m/m), the self-employed by 1,263 (-0.3% m/m). In the case of wage earners in private homes, 3,333 positions were subtracted in the month (-0.7% m/m), the worst contraction of April 2020.
Which sectors drove the growth of wage earners
According to the consultant, the service provider sectors are the ones that contributed the most to the monthly increase (59.6%) of the total increase of the group with 10,338 jobs (+0.25%); Goods producers added 7,043 new jobs (0.33% MoM). In annual terms, with the exception of Agriculture and Livestock, which registered an annual drop of 1.4%, all sectors had increases in jobs. Hotels and Restaurants and Construction stood out with the highest relative increases (17.4% YoY and 13.8% YoY respectively).
With an average of 45,800 jobs created per month, registered employment accumulates 25 consecutive months of monthly increases. However, the data for December and January show some moderation in the creation of new jobs (-20,000 compared to November 2022).
Projections 2023
In summary, for the consultant “since 2012 there has been a continuous loss of participation of private employees in total registered positions, going from 56% in January 2012 to the current 48% (-7.3 pp). As a mirror of this fall “public employees and independent workers went from representing 23% and 21% in 2012 to 27% today”.
What is expected? For LCG, the contraction of activity “can hardly sustain the creation of jobs, especially formal employment. For this reason, we are not optimistic that the sustained growth in employment registered in the year will last.
Source: Ambito
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