Argentina’s struggling industry fuels debate over Milei’s economic model
Argentina’s manufacturers are shedding jobs and closing plants, fuelling debate over the economic costs of government’s reforms. Leer más
In Argentina, businesses are grappling with the consequences of the country's economic approach under President Javier Milei, particularly in the industrial sector. Kioshi, a footwear factory, has seen its workforce shrink from 120 to just 14 employees, symbolizing the industry's struggles and raising concerns over job losses and falling consumption.
In Esteban Echeverría, near Buenos Aires, Kioshi's director, Emmanuel Fernández, believes the domestic market is "dead" due to a lack of disposable income for consumers. Argentina's industrial sector is operating at only 40 percent of its capacity, and manufacturing output dropped five percent between June and July, marking the sector's largest decline in 16 months.
Milei's government touts falling inflation and deregulation as victories, but business leaders warn of negative impacts, such as job losses and unfair competition from imports. The Argentine Industrial Union called for measures to address the increased number of industrial layoffs since August 2023, which have totaled nearly 90,000.
Milei maintains his austerity and deregulation policies are "non-negotiable," but critics argue that the government is "living in a bubble" and dismissing the reality faced by jobless workers who are forced to seek informal employment.
Meanwhile, Clariant, a chemical products factory in Zárate, closed in 2025 after deciding to import products from Brazil due to lack of restrictions. Many of the factory's former workers, like Miguel Márquez, have turned to informal work like Uber driving. Industrialists argue that the playing field is not level, citing factors such as an overvalued exchange rate, high lending rates, and a significant tax burden.
They emphasize the need for a level playing field, including similar efficiency levels to compete with products from countries like China.
Despite Milei's efforts to lower inflation from triple-digit levels to 33.8 percent as of July 2025, some argue that economic activity should also be considered. UIA President Martín Rappallini stresses the importance of analyzing economic activity, not just inflation. The decline in commerce and industry is affecting major cities in Argentina, where most of the population resides, with over 240,000 salaried private-sector jobs lost since 2023.
Milei's re-election prospects may be impacted by the views of Argentines, who now prioritize employment and wages over inflation.
Written by urgent.news from Buenos Aires Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
