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Argentina Sees Sharp Losses in Formal Private Jobs as Milei Reboots Political Agenda

The drop in salaried private employment, concentrated in manufacturing, coincides with the government’s renewed push for fiscal cuts, legislative talks and preparations for the pope’s November visit.

Overview

  • Official SIPA data show formal private salaried employment fell by about 241,176 workers between November 2023 and May 2026, with manufacturing accounting for roughly 85,561 of those jobs.
  • A UNR household-study and sector reports find factory informality has risen over the past decade and now exceeds 40% in manufacturing, leaving informal workers far more likely to live in poor households.
  • Techint economists warn industry is in “extreme fragility,” describing a three-part split between modern exporters, low-productivity market firms and a large informal, vulnerable segment.
  • The Milei administration has restarted a concentrated political drive — convening the mesa política, meeting governors, planning a 26 August push in the Chamber of Deputies and organizing the papal visit for November 8–11 — while publicly reaffirming deep fiscal cuts.
  • Markets are cautious: JP Morgan’s sovereign-risk gauge approached 500 basis points this week and real average wages for registered private workers in June were 0.6% below November 2023, underscoring a gap between macro stabilization claims and weak job and wage trends.