The loss of purchasing power of workers fell 2.4% in November of this year, with a greater decrease than in October.
The purchasing power of the minimum, vital and mobile wage (SMVM) fell 30% from November 2023 to the same month of this year and showed a new deterioration of 2.4% during November. The decrease was greater than that observed in October, when it lost 1.3%, and this greater erosion is due to the fact that the nominal value remained unchanged, while an increase in prices was seen in the economy.
This is clear from the report “Panorama of formal salaried employment and salaries”, prepared by Roxana Maurizio and Luis Beccaria, from the Area of Employment, Distribution and Labor Institutions (EDIL) of the Interdisciplinary Institute of Political Economy (IIEP) of the Faculty of Economic Sciences from the University of Buenos Aires (UBA).
It should be remembered that the Government decided again to establish an increase in the SMVM by decree on December 26. Through Resolution 17/2024, published last Thursday in the Official Gazette, a new amount of $279,718 was set, which represents an increase of 5.5% compared to the last update in October, when the minimum wage was $271,571.
The salary has been deteriorating for several months
In the study, it is argued that this evolution is the continuation of a more extensive process of decrease in the real value of the minimum wagevital and mobile (SMVM) that had started in December 2023, when it contracted 15% hand in hand with inflationary acceleration, followed by an even greater fall, 17%, in January of this year.
And explains that This trend was temporarily interrupted in the following monthsa period during which the nominal increase accompanied inflation, which is why no additional reductions were observed. In June there was a new drop of 4.4%, followed by some recovery in July (4.3%) and by consecutive reductions in the following four months.
The previous decreasing trend, together with the strong contraction of these months, places the minimum wage in real terms at a value lower than that of 2001, before the collapse of convertibility. Likewise, it implies an erosion of 61% with respect to the maximum value of the series, in September 2011.
Employment Outlook
Likewise, after the consecutive falls observed since November 2023, Total formal wage employment remained virtually unchanged in August 2024 and increased slightly in September of this year (seasonally adjusted series). In absolute terms, the number of workers increased by 2,400 workers in August and 8,800 in September.
Despite the aforementioned evolution in August and September, Total formal salaried employment in that month represented a loss of 183,000 jobs (-2%) compared to November 2023. This downward evolution places the number of formal employees at a value slightly higher than that observed in December 2022 and is lower than all the monthly values for 2023.
Source: Ambito
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