Andrés Lerner 
The deep recession affecting the Argentine economy is directly impacting employment. Between December 10, 2023, and July 4, more than 38,000 crisis prevention procedures were filed, 40% more than in recent years.
Companies use this mechanism to try to avoid layoffs, yet despite these efforts, 144,000 private sector jobs were lost in eight months.
Due to plummeting sales and production, more companies are making decisions regarding their personnel. Some are advancing vacations, partially suspending or laying off staff, while others are initiating crisis prevention procedures with the Labor Secretariat.
This latter phenomenon has significantly increased in recent months. Official sources revealed to the Herald’s sister title Ámbito that from December to July, approximately 38,178 cases were processed, up by 40% compared to the average of the last two years for the same period. Each case corresponds to one worker.
The Secretariat, led by Julio Cordero, is receiving requests from around 10 companies per month. The crisis prevention procedure involves negotiation that can result in suspensions or even dismissals, with reduced costs for companies.
Recently, tire manufacturer Bridgestone joined the list of firms initiating this process at Julio Cordero’s secretariat. Another major player, Fate, had taken this path weeks earlier.
According to the latest official report on registered private employment, the industrial sector and construction are the hardest hit. The provinces of Buenos Aires, Santa Fe, and Santa Cruz have lost the most jobs since Javier Milei’s government took office.
Data from the Argentine Integrated Pension System (SIPA) shows that in April 2024, registered private salaried employment dropped by 0.2% compared to the previous month. This negative change means approximately 13,000 people lost formal private sector jobs.
Between September 2023 and April 2024, 144,000 registered private sector employees lost their jobs, representing a 2.3% reduction during that period. The report emphasizes that “the current phase has already exceeded the duration of contractionary periods seen during the 2008 international crisis, the 2014 currency devaluation, and the COVID-19 pandemic.”
However, Cordero asserts that in recessions, unemployment usually rises much more sharply than it is at present. Speaking to El Destape Radio, he described the current labor market situation as “practically a miracle.”
