Changes in the labor market during the first year of La Libertad Avanza’s administration (2024)

Abstract

The purpose of the present article is to present the situation of employment in Argentina during the first year of governance of Javier Milei and its main changes compared to previous years. To achieve it, this article will start by highlighting the analytical and practical importance of studying the labour market, along with the debate surrounding employment in economic theory. Then, three main thematic blocks will be introduced, each related to the other. First, employment and its main indicators, such as unemployment, subemployment, salaried employment, non-registered employment and informality will be analyzed through the technical reports elaborated by INDEC based on the Permanent Household Survey. At the same time, emphasis will be placed on the geographical distribution of informality and in which branches of production it has a greater incidence, as well as the situation of agrarian employment. Secondly, the dynamics associated with both salary and income distribution will be addressed. For salary, the year-on-year and cumulative variation for November 2024 of the wage index will be evaluated by comparing the variations of the Consumer Price Index (CPI) during that period. For income, it will be analyzed how the GINI Coefficient varied during that period and the variations in income divided in deciles of Argentine population; Thirdly, the effects of the public policies promoted by the government in labor matters based on the Law on Bases and Starting Points for the Freedom of Argentines (Law N° 27742), together with its regulatory decree N° 847/2024, will be analyzed. The present analysis will conclude by stating the different points addressed and closing with a reflection on what is expected for the coming years in relation to the possibilities of promoting registered employment in the underlying economic and political framework.