Argentina faces job losses and business closures amid labor reform

Argentina is facing a significant downturn in its formal labor market and business sector. According to a report by the Instituto Argentina Grande (IAG), the first four months following the implementation of the Labor Modernization Law in March 2026 saw the loss of approximately 36,000 formal jobs and the closure of 6,905 companies.

This decline is part of a broader trend, with 13 consecutive months of falling private formal employment, totaling 241,200 jobs lost since November 2023. The report highlights that labor informality has reached 45%, with over 6 million people working in the unregistered sector. Business closures have disproportionately affected small and medium-sized enterprises (PyMEs).

The construction sector is also experiencing a crisis. In July, formal employment in construction fell by 1.1%, losing nearly 4,000 jobs. In the province of Corrientes, activity dropped by 28.6% year-on-year due to the suspension of national and provincial infrastructure projects.

In contrast to these declines, the recruitment firm Randstad projects a seasonal boost of over 2,000 job openings driven by upcoming consumer events such as Cyber Monday, Black Friday, and the end-of-year holidays, particularly in logistics, retail, and hospitality.