Towards the middle of this year the president Javier Milei promised a group of financiers meeting in Buenos Aires that he would lay off about 50,000 public employees. The reality is that in 11 months of management – from December to October – there were a few fewer, 34,829 as indicated in a report from the Impact Evaluation Unit of the Ministry of Deregulation.
“During the first 11 months of his mandate, Javier Milei implemented a profound restructuring of the public sector, eliminating more than 34,000 jobs between December 2023 and October 2024, which is equivalent to a 7% reduction in staff,” the report states.
The official work clarifies that “in particular, the National Public Administrationl – APN (one of the few sectors that had recorded growth in employment during the last decade in Argentina) experienced a decrease of more than 20,000 positions, which generated savings of US$3,820 million.” Of that amount, 90% correspond to personnel who had a fixed-term contract under the modality of Law 25,164 (Framework Law).
The reduction of the state workforce was one of the axes of the electoral campaign that brought Milei to the Casa Rosada. The ruling party considers that everyone who entered the State with a contract during the previous administration of Alberto Fernández represents a political expense.
The methodology applied throughout 2024 to dismiss State employees was to open voluntary retirements, not renew contracts, close companies and public agencies and even reduce the number of ministries.
The official report says that, between December 2023 and October of this year, “The APN reduced its staff by 10%, while in state companies the decrease reached 12.6%.”
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Cut between permanent and transitional plant
“There is a decrease in the various types of employment relationships in the APN sector. Regarding permanent and temporary employees, a drop of 3.6% is recorded between December 2023 and October 2024.”says the survey.
The work indicates that, “in contrast, personnel hired under the Framework Law (Law 25,164) and employees with Location of Works and Services contracts (LOYS) (correspond to monotributistas under Decree 1109/17) experienced much more pronounced declines, with reductions in 17.8% and 51.9%, respectively.”
“This reduction in personnel in the APN sector implied a saving of US$3,820 million. The cut has been most pronounced in contracts governed by the Framework Law, with a decrease of US$2,060 million,” the report indicates.
Regarding the permanent and temporary modality, the study indicates that “the savings reached US$1,130 million, while in the LOYS contract modality, savings of US$630 million were achieved”says the official survey.
Source: Ambito
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