Argentina’s Unemployment Climbs to 7.7% Early 2024

In early 2024, about 1.1 million Argentinians found themselves jobless, pushing the unemployment rate to 7.7%.

This information, released by the National Institute of Statistics and Censuses (INDEC), originated from surveys in 31 urban zones.

These areas are home to nearly 29.6 million citizens, according to the Permanent Household Survey (EPH).

This current rate marks a noticeable rise from late 2023’s 5.7%. It also represents an uptick of 0.8 percentage points year over year.

Since mid-2021, joblessness hasn’t soared this high. At that time, the nation struggled to rebound from COVID-19’s economic shocks.

Reportedly, the labor market contracted by 310,000 positions, while 214,000 new job seekers failed to secure work.

Among the jobs lost, 81,600 were formal roles, with an additional 228,400 in informal employment.

These losses mirror the broader economic slump tied to governmental cost-cutting measures enacted by President Javier Milei.

During this quarter, Argentina’s GDP fell by 5.1%. This decline was largely driven by reduced investment and fewer imports, alongside lower spending by both consumers and the state.

President Milei’s policies have been marked by bold fiscal tightening. Steps included the peso’s devaluation last December, freeing up price controls, cutting subsidies for energy and transportation, and slashing public expenditure overall.

Understanding these shifts is vital. They reflect the tough balance between stabilizing an economy and maintaining public welfare.

Background – Argentina’s Unemployment Climbs to 7.7% Early 2024

In May 2024, Argentina reached a significant financial milestone by achieving its largest monthly primary surplus in recent history.

The country reported a primary surplus of 2.33 trillion pesos ($2.57 billion) and a financial surplus of 1.18 trillion pesos.

Importantly, this achievement highlights the effectiveness of President Javier Milei’s stringent fiscal policies.

President Milei has enacted broad spending cuts across various sectors, including public works and economic subsidies.

Additionally, these cuts extend to transfers to provinces and universities.