Unemployment Is Rising in Argentina: Understand Why Milei's Reforms Are Already Affecting Millions of Workers in 2025

Unemployment Is Rising in Argentina: Understand Why Milei’s Reforms Are Already Affecting Millions of Workers in 2025

Written by Caio Aviz

Published on 23/06/2025 at 20:33

Bandeira da Argentina tremula em Buenos Aires em meio à crise do emprego no país

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Unemployment Rate Reaches Highest Level Since 2021

In the first quarter of 2025, Argentina recorded an unemployment rate of 7.9%.
The data was released on June 19 by the National Institute of Statistics and Censuses (Indec).
This figure represents an increase of 1.5 percentage points compared to the previous quarter, which was at 6.4%.
The number is the highest since the third quarter of 2021, when the rate reached 8.2%.
In year-over-year comparison, there was an increase of 0.2 percentage points, as during the same period in 2024 the rate was 7.7%.

In absolute numbers, the country counts 1.136 million unemployed people.
This represents an increase of 199,000 people compared to the previous quarter.
The occupied population totals 13.3 million people.
Of this total, 9.6 million, or 73%, are salaried workers.
The employment rate fell to 44.4%, down from 45.7% in the previous quarter.
The labor force participation rate decreased to 48.2%, down from 48.8%.

Reduction of Formal Jobs and Growth of Self-Employment

The rise in unemployment occurs in a context of economic restructuring promoted by President Javier Milei.
He took office at the end of 2023.
Since then, over 210,000 formal registered jobs have been eliminated in the country.
This trend reflects a deterioration of the labor market.

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Essential sectors for job generation, such as construction and industry, have suffered significant setbacks.
Between the end of 2024 and March 2025, construction lost 81,871 jobs.
The manufacturing industry recorded a reduction of 25,510 jobs.

In contrast, the number of self-employed workers increased to 3.6 million.
This represents an increase of approximately 100,000 people compared to the last quarter of 2024.
This growth indicates a trend towards informalization and precarization of work.
Many resort to self-employment in light of the scarcity of formal jobs.

Impact of Fiscal Adjustment Policies on the Labor Market

The fiscal adjustment policies of Javier Milei’s government include cuts in public spending and a reduction in the size of the State.
These measures have directly impacted the Argentine labor market.
The public administration sector was the most affected, with the elimination of 130,102 jobs.

Additionally, the transportation and storage service sectors also suffered significant losses.
These sectors lost 53,672 jobs over the analyzed period.

Despite these measures, the Argentine economy presented a growth of 0.8% in the first quarter of 2025.
This growth refers to a comparison with the previous three months.
The performance fell short of estimates, which predicted a growth of 1.5%.
The result was influenced by the increase in imports and the drop in exports and government spending.

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Projections for the Argentine Labor Market

Economists consulted by the Central Bank of Argentina, therefore, project a reduction in the unemployment rate to 6.5% by the end of 2025.
In addition, they estimate a recovery of the Gross Domestic Product (GDP), which could reach 5.2% during the same period.
Consequently, these forecasts take into account a possible economic stabilization which, in turn, will influence other indicators.
Thus, the data points to a gradual, albeit cautious, recovery of the Argentine labor market.

However, current data indicates that the fiscal adjustment model is deepening social inequalities.
Moreover, it undermines the productive and social fabric of the country.
The growing informalization of work and the reduction of formal jobs reflect the ongoing changes in the Argentine economy.

In summary, Argentina faces significant challenges in the labor market.
The increase in unemployment and changes in the employment structure show the impacts of the government’s economic reforms.
Monitoring the evolution of these indicators will be essential to understand the course of the Argentine economy in the coming months.

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Unemployment Is Rising in Argentina: Understand Why Milei’s Reforms Are Already Affecting Millions of Workers in 2025

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