Argentina labor informality rises to 44.2% amid economic crisis

Labor informality in Argentina has reached significant levels, rising to 44.2% in the first quarter of 2026. According to data from the Universidad Nacional de Rosario (UNR) and INDEC, more than four in ten workers lack basic rights, such as health coverage and pension contributions.

The crisis disproportionately affects specific demographics. Over the last decade, formal employment for those aged 19 to 25 dropped from 43.5% to 34.8%. Additionally, the gender gap in informality has widened from 1.2 percentage points to 6.2 points. Poverty is heavily linked to this trend, as 34.3% of informal workers live in impoverished households, triple the rate of formal employees.

In the city of Concordia, Entre Ríos, the situation is even more acute, with informality reaching 46.4%. While the local unemployment rate sits at 6.1%, which is lower than the national urban average, the city suffers from a very low activity rate, meaning a significant portion of the population is not participating in the labor force.