Argentina faces soaring living costs and wage erosion as construction activity collapses

The Argentine government’s wage update for domestic workers raised hourly rates by 1.5% in June 2026, but a separate study shows the minimum wage has lost almost 40% of its purchasing power since 2023, falling below the level of the 2001 crisis.

Construction costs rose sharply in May, with the INDEC reporting a 2.7% month‑on‑month increase and a 29% year‑on‑year rise, driven mainly by higher labor wages (+3.5%) and general expenses (+4%). Parallel data from Santa Fe indicated material price hikes of more than 5% for bricks and other supplies.

A Grupo Construya survey showed construction activity in the Buenos Aires region has fallen about 70%, prompting concerns about demand and financing. Yet Formosa province recorded a modest 5.2% month‑on‑month rise in registered construction jobs in March.

Household surveys revealed severe hardship: over 40% of families in Buenos Aires’ conurbano reduced meals in May to service debt, and 79% reported at least one child missed a nutritious meal. The basic food basket cost $1,418,443 for a four‑person family, nearly five times the minimum wage.

The platform‑based gig economy now employs roughly one million Argentine workers; 68% earn less than half of the basic consumption basket. A new decree classifies drivers and delivery workers as independent contractors, excluding them from labor protections, a move challenged by a provincial court that affirmed Rappi and PedidosYa couriers as employees.

State employees and teachers have asked for a reopening of collective‑bargaining talks to address the eroding real wages, while job‑seekers on the Bumeran portal report an average desired gross salary of 1.78 million pesos, with top‑paid sectors such as energy, mining and engineering exceeding 2.8 million pesos.