The economic policies of the government of Javier Milei hit the labor market hard, chainsaw It went through all areas, not just the public employmentbut also affected the privatesince many companies had to shrink due to the drop in sales. In October, registered jobs (public, private and private homes) fell again after two months of slight increases and 25,600 positions were lost compared to the previous month.
The data comes from the monthly report of Situation and evolution of the registered work of the Argentine Integrated Pension System (SIPA) which publishes three months late Secretary of Laborheaded by Martin Huidobrocurrently under the orbit of Human Capitalcommanded by Sandra Pettovello.
How many positions were destroyed
Compared to 2023, 198,100 salaried jobs were destroyed (-1.9% year-on-year – yoy). This drop is mainly due to the decline in private sector (-2%) and the staff of private houses (-4.6%). He public sectoron the other hand, showed a moderate drop in relation to those previously mentioned (-1.4%). The other side of the destruction of “quality” work was the creation of positions precarious: the thing is, In that same period, an increase of 3% (+90,800) was observed in self-employment, driven mainly by the social monotax (+11.7%), followed by 1.1% of monotributistas and 0.6% of self-employed.
Why is it said that precarious work is growing? The thing is, “Private employees went from representing almost 54% of the labor market in 2013 to 47% currently. He public employment still absorbs 1.3 percentage points (pp) of this cut and currently represents 25.8% of registered employment, but the majority migrated to the independent sector (today 27.1%, +5.2 pp than the 2013 average) with, presumably, worse working conditions than before”stood out from Labor Capital & Growth (LCG).
Work registered in October
In seasonally adjusted terms, registered employment fell 0.2% in October compared to September. However, the behavior within this group was heterogeneous: a growth in private sector employment (+0.1%, about 5,632 positions), stability in the public sector and a 0.4% drop in the work in private homes.
Among public employees, according to the consulting firm LCG, 1,004 new jobs were added, which reflects a “clear contrast with the shrinking of the State that the national Government has been encouraging.”
“From September 2023, the formal and private sector began a period of net job destruction. This trend intensified significantly during the first quarter of 2024, with an average monthly variation of -0.5%. However, starting in April 2024, the contraction in employment began to moderate: during the second quarter, the average monthly decline was reduced to -0.2%. In the third quarter, employment showed a slight recovery,” they highlighted in the SIPA report.
Instead, the independent work as a whole showed a drop of 1% Compared to the previous month, this implies a decrease of 30,600 positions. Negative variations were observed in all categories of independent work, mainly in monotributethat the number of contributors fell by 1.3%, what it represents 27,164 positions. He social monotaxfor its part, presented a drop of 0.2% (-1,363), and the self-employed a fall of 0.4% (-2,038).
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The productive sectors that lost the most jobs in October
In the goods producing sectors (tradables) were lost 1,020 positions in the month (-0.1% monthly), which were more than offset by the 6,652 positions created in October in sectors associated with services (+0.2%). In construction saw the biggest drop (0.9%), subtracting 3,527 positionsbut the Manufacturing Industry added 1,858 new (+0.2%). Tradefor its part, increased a 0.4% monthly, followed by the growth of Business Activities (0.2%), with a total of 6,210 positions, they stood out from LCG.
In the year-on-year comparison, Salaried employment in the private sector contracted by 2%, which is equivalent to the destruction of 129,400 jobs. This negative variation was explained, to a large extent, by the fall in the Construction (-16.9%, that is, 77,000 fewer places) and – to a lesser extent – due to the decrease in Hotels and restaurants (-2.7%); Community, social and personal services (-23%); Manufacturing industries (-23%); and Transportation, storage and communications (-23%).
When broken down by province, the increase in 1.1% monthly (232 positions) in Formosa, followed by the increase of Chaco in 519 positions (0.7%). At the far end, Neuquen was the one that subtracted the most positions with a negative monthly variation of the 0.5% (-722 positions).
Source: Ambito
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