Argentina Faces a Stubborn Jobs Challenge Amid Growth

INDEC reported a 7.6% unemployment rate in Q2 2025, down from 7.9% in Q1 but unchanged year-on-year. The survey covered 31 urban areas and nearly 30 million people.

About 1.74 million Argentines lacked work, while 13.3 million held jobs. Informal workers made up 43.2% of those employed, leaving many without labor rights or social benefits.

Greater Buenos Aires led with 8.7% unemployment. The Pampas region followed at 7.4%, and Patagonia posted the lowest rate at 4.9%. Women faced higher joblessness (8.5%) than men (6.8%), and young workers under 30 saw rates above 12%.

Argentina’s GDP grew 6.3% year-on-year in Q2, driven by agriculture and manufacturing. Yet the economy shrank 0.1% from Q1, reflecting weaker exports and private spending.

President Milei’s austerity measures cut inflation from over 25% in late 2023 to about 2% by mid-2025. However, deep subsidy cuts and public-sector layoffs pushed up joblessness early in his term. The economy recovered but did not generate enough formal jobs.

Underemployment affected 11.6% of the workforce who wanted more hours. A broader 30.5% of the labor force faced “pressure on the labor market,” including discouraged jobseekers.

Informal workers earn about 41% less than formal staff and lack legal protections. Businesses worry that weak job growth will curb consumer spending and slow the recovery.

With midterm elections in October, stagnant unemployment may sway voters. The government must balance fiscal discipline with policies that create formal jobs. Otherwise, millions of Argentines could remain on the economic sidelines despite overall growth.

More: Argentina news in English, every day from The Rio Times.

This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error