This is stated in an Audemus report. Since the end of 2023, 12,000 employer companies have disappeared. They warn about the impact of the recession in the Milei era.
The recession hits the private sector hard. Since the arrival of Javier Milei, eight multinationals have left Argentina and now a giant in the automotive sector is analyzing selling its local operation. A report by the consulting firm Audemus reveals that 86 crisis events have already occurred in large firms. This includes: layoffs, suspensions and companies leaving the country. Since the end of last year, 12,000 employer companies have disappeared.
From the financial sector to mass consumption, including energy, eight multinationals have already left the country in Javier Milei’s administration: HSBC, Xerox, Clorox, Prudential, Nutrien, ENAP, Fresenius Medical Care and Procter & Gamble. As far as he could know Scopethe list could grow in the coming months with a giant in the automotive sector that has already offered its operation to at least three local businessmen.
At the same time, There are 86 crisis events that were recorded in large companies. According to a survey by the consulting firm Audemus, in addition to the eight departures, there were 68 firms that made layoffs or opened voluntary retirements and ten that made the decision to suspend part of their workers.
In the division by sectors, The most affected is textiles/footwear with 22 events, followed by metallurgy, commerce and electronics with six.. Then, others appear such as health, medicine, energy and mining with five, automotive with four. The industry as a whole accumulates 57 and services 11.
If the horizon is expanded to all types of firms, From the end of last year until now, some 12,000 employer companies disappeared. The data was published this week by the director of Productive Planning at Fundar, Daniel Schteingartwhich prepared it based on information published by the Superintendence of Labor Risk.
In dialogue with Scopethe sociologist emphasized that “practically in all branches of activity there is a decline”. For Schteingart, what most determines the generation of companies is the economic cycle: “if you are in recession, companies will not be created,” so he does not expect isolated measures such as labor reform to modify the dynamics.
On this point, various analysts consulted by this medium invited two indicators to be closely followed: activity and investment.
Although the INDEC reflected an improvement in the economy of 1.7% in July, compared to the previous month, the consulting firms anticipate that the recovery is not homogeneous and much less constant.
The advance data shows a new inter-monthly collapse in August in the most relevant sectors such as industry, commerce and construction.
On the investment side, according to the latest report from Orlando Ferreres, the drop was 11.2% year-on-year in July, but Capital formation has already accumulated a contraction of 20.6% in the first seven months of the year.
Source: Ambito
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