Javier Milei’s First Year: Economic Decline and Rising Unemployment in Argentina
A report by the Center for Political Economy Argentina (CEPA) notes that between November 2023 and August this year, 12,322 employers have been lost in the country, with the commercial sector being the most affected, showing a reduction of 3,021 employers. Nov 21, 2024 Photo: EFE
November 22, 2024 Hour: 4:59 pm
The text reports that although this trend temporarily stopped in the following months, where nominal MVMS growth accompanied inflation, a further 4.4% decline was recorded in June. There was a slight recovery of 4.3% in July, but the deterioration continued, culminating in a 1.3% decline in October.
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A recent study by the Faculty of Economic Sciences of the University of Buenos Aires has revealed an alarming situation regarding the minimum living and mobile wage (SMVM) in Argentina, which has seen a drastic 28% reduction in just 11 months under the presidency of Javier Milei.
This decline has brought the purchasing power of the SMVM to levels lower than those recorded in 2001, just before the crisis that ended with convertibility.
The fall in purchasing power began in December 2023, with a contraction of 15% due to inflationary acceleration, and intensified in January 2024 with an additional 17% reduction.
The text reports that although this trend temporarily stopped in the following months, where nominal MVMS growth accompanied inflation, a further 4.4% decline was recorded in June. There was a slight recovery of 4.3% in July, but the deterioration continued, culminating in a 1.3% decline in October.
In addition, a report by the Center for Political Economy Argentina (CEPA) notes that between November 2023 and August this year, 12,322 employers have been lost in the country, with the commercial sector being the most affected, showing a reduction of 3,021 employers.
In relative terms, construction has suffered a 6.6% loss in total employers. In total, 261,017 registered jobs have been lost, with the majority of these redundancies concentrated in large companies—60.6% of which have more than 500 employees.
The economic crisis has severely affected labor-intensive sectors. A member of the Argentine Industrial Union has even stated that “this year we are experiencing another pandemic,” reflecting the magnitude of the economic decline facing the country under the policies implemented by Milei.
Autor: MLM
Fuente: El Destape - El Observador
