The economist also pointed out again that if things are done well, unemployment does not have to increase; On the contrary, there will be sectors in decline, but the rest will experience growth.
Ricardo Arriazuone of the economists closest to Javier Milei, addressed the growing fear of unemployment in Argentinawhich, according to recent surveys, is beginning to exceed to inflation as the main concern of society.
In recent statements, he assured that if the Government follows its economic plan precisely, it could achieve positive results and quickly dispel social concerns. In this context, he was in favor of making changes to the retirement system and explained why he considers sustained employment growth possible.
“In a developed country, the GDP elasticity of employment ranges between 0.2% and 0.4%, which means that for each point of GDP growth, employment increases between 0.2% and 0.4%. In an emerging country, this indicator rises to 0.6% because labor is cheaper and capital is more expensive. In a country in crisis, it reaches 1%, and in a country in super crisis, 2%. “he detailed Arriazu.
The words of the guru
Furthermore, he noted: “In the last 15 years, Argentina was at 0% due to the trial industry, because no one wanted to hire employees. But if that changes and we return to an elasticity of 0.6%, with a GDP growth of 5% in 2025, employment could increase by 3%, which would mean 500,000 more people in the private employment system.” These statements were made during his participation in the XXII Business Forum of CCI France.
Ricardo Arriazu.jpg
In his analysis, Arriazu highlighted that “if things are done well, unemployment does not have to increase; on the contrary, there will be sectors in decline, but the rest will experience growth. If Argentina achieves sustained growth of 5% annually, and there are grounds to think it is possible, the numbers change significantly“.
Likewise, the economist stressed that these improvements would be key to facing structural challenges, such as the current pension system, which he described as “insufficient.” He also proposed raising the retirement age again, as was already implemented in the 1990s, as a solution to alleviate pressures on the system.
Source: Ambito
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