Argentina's labor market is going through one of its most critical phases in decades. A report from Fundar, a Buenos Aires-based public policy think tank, using data from the Superintendencia de Riesgos del Trabajo (SRT), Argentina's workplace risk regulatory body, confirms that since November 2023, 30,633 companies have disappeared. This represents 6% of all registered firms that existed when President Javier Milei took office. According to the organization, this is the worst decline recorded in the first 30 months of any government since records began.
The Fundar Monthly Business Monitor for May 2026 reveals that 2,371 companies closed compared to April (a 0.49% drop), marking 16 consecutive months of decline. The year-over-year comparison is equally worrying: 16,560 fewer companies than in May 2025, meaning 27 straight months of annual contraction.
Collapse Across All Sectors
The survey breaks down the situation by economic sector, and the results are striking. 15 out of 18 sectors tracked showed a monthly decline in May, 14 saw annual drops, and another 14 have contracted since November 2023. The hardest hit since the new administration began:
- Transportation and storage: accumulated decline of 17.05%.
- Manufacturing industry: drop of 13.81%.
- Accommodation and food services: the most affected in May, with a 1.38% monthly decrease.
On the other end, electricity and gas grew 0.25% in the month and accumulated a 1.74% increase since November 2023. Administrative services is the most dynamic sector, with an accumulated growth of 8.15%.
Provincial Map: Neuquén, the Lone Exception
The crisis affects every region. In May, all 24 provinces lost companies compared to April, and 23 of the 24 show both annual and accumulated declines since November 2023. The only jurisdiction that increased its number of firms was Neuquén, with a 1.6% growth, driven by the development of the Vaca Muerta shale oil and gas field in Patagonia.
At the opposite end, the most affected provinces since the current government took office are La Rioja (-18.87%), Catamarca (-14.09%), and Tierra del Fuego (-13.56%).
Key Data at a Glance
- 30,633 companies lost since Nov. 2023
- 2,371 closures in May 2026 alone
- 16 consecutive months of decline
- 481,724 active companies in May
- 110,000 jobs lost in one year
- -241,176 private jobs since Nov. 2023
Registered Private Employment in Free Fall
Data from the Secretariat of Labor, through the Sistema Integrado Previsional Argentino (SIPA), confirms that in May, 9,059 private-sector registered jobs were lost (-0.15%), marking the thirteenth consecutive month of decline. Public employment added 736 positions, and the monotributo (Argentina's simplified tax regime for small self-employed workers) grew by 2,676 new registrants, but these figures are nowhere near enough to offset the bleeding in salaried employment.
Since November 2023, registered private employment has accumulated a loss of 241,176 jobs (-3.78%), according to SIPA data. In annual terms, the decline is 135,438 jobs (-2.16%).
Sectors That Destroyed the Most Jobs
- Manufacturing industry: -52,341 jobs (-4.5%)
- Commerce: -39,154 jobs (-3.1%)
- Transportation, storage, and communications: -13,915 jobs (-2.69%)
- Financial intermediation: -6,924 jobs (-4.6%)
These four sectors account for 49% of all registered private salaried employment, around 3 million workers.
Real Wages Losing Ground to Inflation
Job losses are compounded by a drop in purchasing power. Real private-sector wages fell 0.9% in June, after already retreating 2.9% in May. For the first time in 20 months, real wages are now 0.6% below their November 2023 level.
The reason: nominal wages grew only 1% monthly in April and May, far below the pace of prices. Wage negotiations (paritarias) show stark differences: while Building managers secured a 5.9% real increase and Truck drivers 3.1%, Textile workers lost 12.6%, Metalworkers 12.4%, and Commerce workers 11% in real annual terms.
Emblematic Closures and Investment Announcements
The Fundar report also highlights specific cases of companies that closed or downsized during May:
- Will Der: the sportswear company closed its plant in Las Flores and blocked entry to 120 workers in Pacheco.
- Unilever: closed the dehydrated vegetables plant for the Knorr brand and let go 60 employees.
- Granja Tres Arroyos: laid off 250 workers due to avian flu and falling prices.
- Tía Maruca: permanently closed its plant in San Juan, which was operating at 52% capacity.
- Peabody: stopped producing in Argentina after 16 years and relocated its machinery.
However, there are also positive developments. Mercado Libre opened a 60,000 m² warehouse center in Córdoba, with a projected investment of 3.4 billion US dollars for 2026. Pampa Energía is moving forward with a granular urea plant with an annual capacity of 2.1 million tons, and Compañía MEGA is expanding its natural gas liquids production, both under the RIGI (Large Investment Incentive Regime), a special framework created to attract major capital projects.
The official diagnosis points to a structural problem: "the loss of productive units is mainly explained by a deficit in the business birth rate rather than an atypical acceleration in closures," states the Secretariat of Labor report. Fewer and fewer companies are being created to replace those leaving the market, and registered employment continues to pay the price of the adjustment.
Sources: Fundar report based on SRT and SIPA data, Secretariat of Labor.