Argentina faces massive SME closures and job losses

Argentina is experiencing a significant contraction in its productive sector, characterized by a massive decline in small and medium-sized enterprises (SMEs). Data from the Centro de Economía Política Argentina (CEPA) indicates that since the start of Javier Milei’s presidency, the province of Salta alone has lost approximately 400 employers and 14,000 registered jobs. Miriam Guzmán, treasurer of the Cámara Pyme de Salta, estimates that one SME closes every day in the province, noting that such closures impact local commerce and family incomes.

On a national scale, economist Alejandro Sangiorgio reports a profound destruction of the productive fabric. Between November 2023 and June 2024, statistics suggest that while 3,100 companies were created, 34,125 companies ceased operations. This represents a 6.1% cumulative drop in productive units, falling from 512,357 to 481,015. Sangiorgio emphasizes that 95% of the destroyed companies were SMEs, attributing this trend to government policies involving economic adjustment, regulation, and currency issues.