Argentina's job market shrinks as public and private sector cuts deepen

Argentina job cuts public sector layoffs private sector employment minimum wage loss informal youth work

Since President Javier Milei took office, Argentina’s public sector has shed nearly 70,000 jobs, with the June 2026 figures showing a loss of 69,769 positions—a 2.56% contraction in the first half of the year. At the same time, private‑sector formal employment has fallen by about 235,000 jobs since November 2023, a 3.7% decline, with an additional 8,400 jobs lost in April alone. The minimum wage has lost roughly 40% of its purchasing power since November 2023. Youth labour market conditions remain precarious: in Mendoza, 70.1% of salaried workers under 24 are employed informally, far above the national average. The textile industry continues to shed jobs, reporting a loss of 15,468 formal positions between April 2025 and April 2026 as production fell 26.5% year‑on‑year. In neighboring Chile, the national unemployment rate rose to 9.4% in the April‑June 2026 quarter, while the Aysén region recorded a 4.6% unemployment rate. Despite these trends, economist Antonio Aracre forecasts that Argentina’s key economic indicators will begin to improve by September.

Entities

Antonio Aracre · Argentina · Argentine economy · Chile · EMAE · Fernando Marull · Invecq · Javier Milei · Luis Caputo · Mendoza · Orlando Ferreres · Orlando J. Ferreres

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] Real wages of formal private employment fell 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. enlineanoticias.com.ar
[○ 1 SOURCE] 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. enlineanoticias.com.ar
[○ 1 SOURCE] Agriculture contributed +4.6% and mining +15.7% to annual growth, while commerce contributed –4.3% and manufacturing –5.6%.
[○ 1 SOURCE] Economist Antonio Aracre expects key economic indicators to improve by September. www.sitiosargentina.com.ar
[○ 1 SOURCE] Agriculture, mining and energy sectors grew strongly but employ relatively few workers. enlineanoticias.com.ar
[○ 1 SOURCE] Growth forecasts for 2024 have been revised down to about 3% or less after May activity fell 0.5%. eleconomista.com.ar
[● 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. enlineanoticias.com.ar
[○ 1 SOURCE] Economist Antonio Aracre expects Argentine economic indicators to improve by September or earlier. www.sitiosargentina.com.ar
[○ 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.
[○ 1 SOURCE] The private sector lost about 11,700 jobs in April.