Argentina's Labor Market: A Deepening Crisis
Argentina's formal private employment is in freefall. According to the Sistema Integrado Previsional Argentino (SIPA) – the national social security database – the country lost 9,059 private sector jobs (-0.15%) in May 2026. This marks the 13th consecutive month of decline, with no sign of a turnaround. Since November 2023, the reference month before President Javier Milei took office, the private sector has shed 241,176 jobs (-3.78%). When all formal employment categories are included, the total loss exceeds 337,000 positions, according to calculations by Luis Campos, a researcher at the CTA Autónoma labor institute.
Key Indicators – May 2026 (SIPA)
| Category | Monthly Change | Year-on-Year Change |
|---|---|---|
| Private registered employment | -9,059 (-0.15%) | -135,438 (-2.16%) |
| Public sector | +736 (+0.02%) | -16,701 (-0.49%) |
| Domestic workers | +1,352 (+0.3%) | +6,319 (+1.4%) |
| Monotributo (simplified tax regime) | +2,676 | +42,672 |
| Autónomos (self-employed) | -3,059 (-0.79%) | -6,514 (-1.65%) |
Hardest-Hit Sectors: Industry and Commerce
The job losses are not evenly distributed. The most affected sectors are those that traditionally employ the largest number of formal workers:
- Manufacturing: -52,341 jobs (-4.5%) in the last year
- Commerce: -39,154 jobs (-3.1%)
- Transport, storage, and communications: -13,915 jobs (-2.69%)
- Financial intermediation: -6,924 jobs (-4.6%)
These four sectors account for 49% of all private registered salaried employment – about 3 million workers – and have been declining since June 2025. In contrast, agriculture and mining have shown slight improvements since February, though mining still records a year-on-year drop of 3,503 jobs (-3.88%).
Company Closures: Over 30,000 in Two and a Half Years
The think tank Fundar adds a grim picture: since December 2023, Argentina has lost 30,633 companies, equivalent to 6% of all firms that existed at the start of the current administration. This is the worst decline in the first 30 months of any government since records began. In May alone, 2,371 companies closed compared to April (-0.49%), marking 16 consecutive months of decline. Year-on-year, there are 16,560 fewer companies than in May 2025 (-3.3%), with 27 consecutive annual drops. The total number of active companies now stands at 481,724, far below the historical peak of 540,282 reached in February 2012.
Notable Recent Closures
- Will Der: closed its Las Flores plant and blocked 120 workers from entering in Pacheco
- Unilever: shut down its Knorr dehydrated vegetables plant, laying off 60 workers
- Granja Tres Arroyos: dismissed 250 workers due to avian flu and falling prices
- Tía Maruca: permanently closed its plant in San Juan
- Peabody: stopped production in Argentina after 16 years, moving machinery to Paraguay
- Indumentaria Catamarca: will close on August 31, reducing staff from 150 to 20
Real Wages Fall Below November 2023 Levels
The job losses are compounded by a decline in purchasing power. The average real salary in the private registered sector fell 0.9% in June, after a 2.9% drop in May. For the first time in 20 months, it is now 0.6% below the level of November 2023. The reason: nominal wage increases have slowed faster than inflation. While in the first four months of 2026 wages rose an average of 2.1% per month, in April and May the increase was just 1%.
Collective Bargaining Agreements with the Biggest Real Losses
| Agreement | Real Year-on-Year Change |
|---|---|
| Textiles | -12.6% |
| Metalworkers | -12.4% |
| Commerce | -11% |
| Footwear | -10.5% |
On the positive side, building managers saw a real increase of 5.9%, truck drivers 3.1%, and construction and pharmacy workers 2.5%.
Only Neuquén Is Growing: The Provincial Map
The employment decline affects almost all provinces. According to SIPA data processed by Luis Campos, only Neuquén (+7.6%), Río Negro (+3.4%), and San Juan (+0.4%) saw growth in private registered employment. Elsewhere, declines range from -1% in Tucumán to -17% in Tierra del Fuego and Santa Cruz. Fundar's report confirms this: Neuquén is the only province that increased its number of companies since November 2023 (+1.6%), driven by the Vaca Muerta shale oil development. The worst-hit provinces are La Rioja (-18.87%), Catamarca (-14.09%), and Tierra del Fuego (-13.56%).
What Lies Ahead?
The outlook remains bleak. The Encuesta de Indicadores Laborales (EIL) – a monthly survey of business expectations – turned negative again in June, suggesting the decline could deepen. Consulting firm LCG noted that the Régimen de Incentivos a la Formalización Laboral (RIFL), a labor formalization incentive scheme in effect since March, will not have a significant short-term impact on formal job creation. "The dynamics of economic activity, driven by both domestic and external demand, are a more important factor for the labor market than any change in labor legislation," LCG warned. "There are no signs that the formal labor market has found its floor," concluded Luis Campos.
Sources: SIPA, Secretaría de Trabajo, Fundar, Luis Campos (CTA Autónoma), LCG.