Argentina‘s Private Sector Salaried Employment Shows Signs of Recovery
Argentina’s Ministry of Capital Humano, through its Secretaría de Trabajo, Empleo y Seguridad Social, reported a 0.1% increase in formal private sector employment in October. This growth, when combined with September’s figures, amounts to a 0.3% increase over the last two months, representing approximately 17,000 new jobs. The government lauded this trend as a "sustained growth in registered private sector employment" and a "recovery in real median wages."
Official statistics indicate that, when adjusted for inflation, the average wage for this segment of workers was 2.8% higher in November 2024 compared to the same month in 2023. Companies with over ten employees saw a 0.2% increase in employment in November, marking a 0.7% rise since August 2024.
Sector-wise Breakdown
Several sectors led the job creation efforts, with Commerce, Restaurants, Hotels, and Industry recording increases of 0.4% and 0.3%, respectively. Notably, Commerce has witnessed significant growth, accounting for a fifth of the total formal jobs in the private sector. This sector has been on an upward trajectory since January 2009, reaching its highest employment figure in October 2024.
The construction sector, which has previously struggled, showed signs of stabilization in November, registering no further job losses. However, the industry sector presents a mixed picture, with food, wood, and paper industries rebounding, while textiles and the automobile sector remain stagnant.
Positive Employment Outlook
Employers in the private sector expressed optimistic hiring expectations for the December 2024 to February 2025 period. Of the companies anticipating changes in staffing levels, 3.9% plan to increase their workforce, while 1.3% foresee reductions – resulting in a net growth expectation of 2.6%.
However, government data shows a decline in employment within the national administration and decentralized organizations. Nevertheless, overall public sector employment remains stable.
Wage Increases
The average salary for registered private sector workers increased by 1.6% in November after adjustment for inflation. This marked a 15-point increase in purchasing power over the first eleven months of 2024, surpassing the November 2023 level by 2.8 points. This improvement has elevated the average wage index to its highest point since 2020.
Wages established in major collective bargaining agreements also saw a 0.5% increase in November, cumulating to a 12% rise over the year. Moreover, the average gross salary reached $1,178,925, reflecting a 2.8% nominal increase, which exceeded the inflation rate by 0.4 points.
These trends suggest a steady recovery in Argentina’s job market and wages, boding well for the country’s economic prospects.
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