Job Losses Reported Since September

Beginning from September of the previous year, there has been a noticeable downward trend in the number of registered private sector workers. The most recent data, which was released this Monday and covers up to November, indicates that the total number of people with registered employment across the country is approximately 13,323,000. According to the Secretary of Labor, Employment and Social Security’s report, this represents a decrease of 0.7% (or 88,600 fewer people) from the previous month, after accounting for seasonal adjustments.

Meanwhile, data from the Labor Indicators Survey (EIL) revealed a 0.5% decrease in private employment in December 2023. This was mainly observed in companies with more than 10 employees across all surveyed urban agglomerations. This drop was primarily due to seasonal fluctuations in the Construction sector. If we temporarily exclude this sector due to its seasonal impact, the level of private registered employment experienced a slight contraction of 0.1% from the previous month.

However, the official report urges caution in interpreting the data for November. A significant portion of the observed decrease may not necessarily indicate a true loss of formal work. Instead, it may be a result of a measure that extended the payment period for tax and pension obligations, which temporarily distorted the calculation of people with registered work according to the methodology used for preparing the indicators.

Taking this into account, the report suggests that registered salaried employment decreased by 0.1% (with 11,000 fewer people). Declines were observed in both private employment and employment in private houses, while the public sector remained static.

Independent work also saw a decrease, with a sharp drop of 2.5% (or 77,600 fewer workers). This substantial decrease in self-employment was influenced by a decline in self-employment.

The report noted a significant change in work dynamics from September 2023, marking the beginning of a moderate decline in registered salaried employment within the private sector. From September to November 2023, approximately 26,000 workers were removed from registered salaried employment in the private sector.

Compared to the previous year, the total number of workers with salaried employment expanded by 1.9% (an additional 193.7 thousand workers). Of these, 103,000 were from the private sector, 98,000 from the public sector, while private homes saw a decrease in employment by 7,500 people. Independent work, on the other hand, expanded by 88,000 people, largely due to the Monotributo categories.

The average gross nominal remuneration for November 2023 was $525,215, marking a 158.6% growth compared to the same month of the previous year. Meanwhile, the median gross remuneration, representing half of the workers, was $404,679, a 160.7% increase from the previous year.

However, the report indicates that compared to November 2019, the average salary has decreased by 1.4%. It fell 15% compared to November 2015 and 18.6% for the lower-earning half of employees.

Finally, the EIL reported an increase in the layoff rate in December 2023 compared to the previous month. However, it’s important to note that this increase can be attributed entirely to the seasonal rise in dismissals in the Construction sector. When this sector is excluded from the calculation, the layoff rate remains consistent between November and December 2023. Compared to previous years, the incidence of uncaused dismissals in December 2023 is higher than between 2020 and 2022 (when dismissal prohibitions and double compensation were in place) and is similar to the rates observed between 2014 and 2019 (in the Decembers of each year).