Argentina's private sector loses 235,000 jobs as investment falls 6.2% YoY
Argentina’s economy is experiencing a sharp contraction in private‑sector employment and investment. Economists note that gross fixed capital formation dropped 6.2% year‑on‑year in June, extending a streak of eight consecutive months of decline, and the cumulative fall for the first half of the year reached 7.6%.
Formal salaried employment fell about 8,400 jobs in April, while the private sector alone shed roughly 11,700 positions that month. Over the same period the private sector lost a total of 235,000 jobs compared with November 2023, a 3.7% contraction. The minimum wage’s real purchasing power has slumped about 40% since November 2023. Sectors that employ many workers, such as textiles, apparel and automobiles, remain in recession, deepening the labour market strain.
Entities: Antonio Aracre · Argentina · Argentine economy · EMAE · Fernando Marull · Invecq · Javier Milei · Luis Caputo · Orlando Ferreres · Orlando J. Ferreres · University of Buenos Aires (UBA)
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [○ 1 SOURCE] Real wages of formal private employment fell 3.1% against inflation between January and May. (real wages have dropped 3.1% against inflation between January and May.)
- [● 2 SOURCES] Argentina's gross fixed capital formation fell 6.2% year‑on‑year in June, marking eight consecutive months of decline. (c339d9cb-43bb-4c3e-b54a-867be2364acc, dad6ceea-4d3a-430b-80a9-67b0e302efa8)
- [○ 1 SOURCE] Private‑sector employment is 235,000 jobs below its previous level, a 3.7% decrease. (private‑sector employment is 235,000 jobs below its previous level, a 3.7% decrease.)
- [○ 1 SOURCE] Textiles, apparel and automobile sectors remain in recession and employ many workers. (Orlando J. Ferreres)
- [○ 1 SOURCE] Agriculture contributed +4.6% and mining +15.7% to annual growth, while commerce contributed –4.3% and manufacturing –5.6%. (agriculture +4.6% i.a., mining +15.7% i.a.; commerce -4.3%, manufacturing -5.6% i.a.)
- [○ 1 SOURCE] Economist Antonio Aracre expects key economic indicators to improve by September. (Antonio Aracre)
- [○ 1 SOURCE] Agriculture, mining and energy sectors grew strongly but employ relatively few workers. (Orlando J. Ferreres)
- [○ 1 SOURCE] Growth forecasts for 2024 have been revised down to about 3% or less after May activity fell 0.5%. (Fernando Marull)
- [● 2 SOURCES] Investment fell 6.2% year‑on‑year in June and 7.6% in the first half of the year, marking eight consecutive months of decline. (investment fell 6.2% YoY in June, cumulative 7.6% H1, eight months of decline)
- [○ 1 SOURCE] Economist Antonio Aracre expects Argentine economic indicators to improve by September or earlier. (economist Antonio Aracre predicts improvement by September or earlier)
- [○ 1 SOURCE] The EMAE activity indicator declined -2.5% in February, -1.5% in April and -0.5% in May, implying annual growth of about 1% if unchanged. (EMAE fell -2.5% Feb, -1.5% Apr, -0.5% May; annual growth ~1% if trend continues)
- [○ 1 SOURCE] The private sector lost about 11,700 jobs in April. (dad6ceea-4d3a-430b-80a9-67b0e302efa8)