Argentina public sector employment falls by 72,000 since December 2023

Argentina's national public sector employment has decreased by 72,440 positions since December 2023, according to the latest report from the National Institute of Statistics and Censuses (INDEC).

The workforce in the National Public Administration, state-owned companies, and state societies fell from 341,465 employees at the start of the current administration to 269,025 in August. This reduction is part of the government's policy to decrease state spending and structure, a process referred to by the administration of Javier Milei as the “motosierra” (chainsaw).

In August alone, the workforce saw a monthly decline of 0.5%, representing 1,446 fewer positions compared to July. The decentralized administration experienced a 0.7% drop, falling from 110,819 to 109,988 employees. Minister of Deregulation and State Transformation, Federico Sturzenegger, defended the policy, stating that the reduction in spending is intended to allow for future tax cuts.