Formal down, informal up – employment in Argentina's since Milei’s labour reform
In the eight months since Milei’s labour reform bill was approved, registered jobs have fallen 0.9%; Informal employment now reaches 45% of workforce. Leer más
President Milei's labour reform aimed to stimulate hiring of registered employees, but recent data reveals a rise in informal employment and a decline in formal jobs. Law 27,802, known as the "Labour Modernisation Law," was enacted in March. Registered jobs have fallen by 0.9 percent, with just 1.6 percent of workers newly hired in June, the lowest rate ever recorded.
Informal employment, however, has surged by 1.8 percentage points, now accounting for 45 percent of the workforce. The Instituto Argentina Grande (IAG) estimates that 241,200 formal jobs have been lost since the start of the Milei administration in December 2023. The institute's report suggests that measures like longer trial periods and the hours bank have not succeeded in encouraging formal hiring.
Labour Minister Federico Sturzenegger expressed disappointment in the business response and criticized an "ultra-actividad" mechanism, where collective bargaining agreements remain in force beyond their deadlines. He also noted the impact of the Covid-19 pandemic, which has shifted the labour market towards more flexible systems.
Argentina's overall unemployment rate rose to 7.9 percent in the second quarter of the year, the highest since Milei took office. The private sector has also suffered, with a loss of 12,700 jobs in the last quarter, a 4.2 percent decrease since November 2023.
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.
