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Deepening SME closures and job losses in Argentina

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2026-09-28 17:25 UTC → 2026-09-29 11:36 UTC · added ~~removed~~

The contraction in Argentina’s productive sector has intensified, characterized by widespread business closures and significant job losses. Since November 2023, approximately 31,300 companies have ceased operations, representing a 6.1% decline in registered businesses. Economist Alejandro Sangiorgio noted that 95% of these destroyed companies were SMEs. Political leaders have recently escalated criticisms of the administration’s economic direction as signs of recession deepen. Buenos Aires Governor Axel Kicillof reported that more than 400,000 jobs have been lost nationwide, linking the decline in consumption to the closure of various industries. Kicillof argued that there is no ‘Argentine miracle’ if citizens cannot afford basic necessities such as food, rent, or electricity, noting that the downturn is impacting tourism, construction, commerce, and culture. Further complicating the outlook, Deputy Martín Lousteau highlighted that economic activity has fallen by 4.5% since April. Lousteau challenged the optimistic projections of Economy Minister Luis Caputo, stating that the promised ‘best 18 months’ have instead begun with a recession. Recent developments indicate a shift toward import-based models is impacting the industrial sector. The Electrolux Group has announced the permanent closure of its manufacturing plant in Rosario, effective September 26, transitioning to a global supply model to improve efficiency amid declining domestic consumption. While the company will continue to market its brands and provide technical services, the move is expected to impact between 100 and 200 workers. The Unión Obrera Metalúrgica (UOM) has challenged the legality of these layoffs, alleging a failure to follow mandatory crisis prevention procedures. Consequently, the Ministry of Labor of Santa Fe has intervened, dictating a period of mandatory conciliation until October 20. During this window, layoffs are temporarily suspended and the company must pay 100% of workers' salaries while negotiations continue. This trend is mirrored by other companies, including Whirlpool and Mabe, which have reduced local manufacturing. In Tierra del Fuego, Hilandería Fueguina announced its closure, impacting 20 textile workers. In the automotive parts sector, Kromberg & Schubert in Pilar and Irauto in Tigre face imminent shutdowns, while Granja Tres Arroyos faces a financial crisis involving mass layoffs.

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