The paralysis of the economy caused by the pandemic hit employment in Argentina hard. The number of salaried workers and that of monotributistas decreased
Formal jobs in the private sector decreased 1.6% month-on-month in April, the first full month of social isolation and the highest drop in registered non-state employment since it began to be measured, reported this Friday the Undersecretary of Planning, Studies and Statistics of the Ministry of Labor.
According to data from the Argentine Integrated Social Security System (SIPA), in April there were 186,000 fewer jobs than in March in the private sector, due to the loss of 128 thousand salaried jobs, equivalent to a cut of 2.2%, and the departure of 32 thousand contributors to the monotax, which implied a fall of 2%.
“The international crisis caused by the coronavirus pandemic has no recent history, nor due to the magnitude of the fall in the economy and employment., nor by the global reach that it is showing; the duration and depth of the effects on the world economy are still uncertain; Argentina is not exempt from this scenario, “explained the undersecretary in his synthesis of the situation of registered work.
Which sectors were most affected
At the sectoral level, the fall in wage employment was widespread: The sectors with the highest losses were construction (-4.6%); hotels and restaurants (-1.7%); social services (-1.4%); transportation and business services (-1.9%), education (-1.8%), and Commerce (-1.3%).
Construction was one of the items most affected by the quarantine.
In contrast, the sectors defined as essential, health, financial intermediation and the set of primary activities, were the least affected, although they also registered job losses.
According to the Survey of Labor IndicatorsIn May, the level of private employment registered in companies with more than 10 workers in the total agglomerates surveyed fell 0.4% in relation to the previous month, attenuating the fall of the previous two months (-0.6% in April and -0.5% in March).
“This slowdown in the contraction of employment is related to the reopening of some activities, in addition to those declared essential, and the adaptation in various sectors and geographic areas to the new conditions imposed by the pandemic,” the work explained.
The situation is more evident in the inland agglomerates, which while in April showed a monthly fall in employment of 0.8%, in May the contraction was 0.4%; meanwhile, the agglomerate of Greater Buenos Aires (GBA), the moderation of the decline was only 0.1% (April -0.6% and May -0.5%).
What activity did the companies have?
The crisis is also reflected in the companies’ responses regarding the level at which they are operating, since while in April 19% of the total companies surveyed did not operate, in May this value fell to 13%.
On the contrary, in April only 25% said they were operating as usual, and in May that value was 32% in total agglomerates.
Regarding the level of activity, there are also differences between Greater Buenos Aires and the interior of the country.
Thus, the situation is relatively better in the interior than in the GBA, in larger companies than in smaller ones and in service activities than in commerce, industry and construction, the sector most affected by isolation. .
“The effects of the pandemic on an economy already in crisis imposed a complex scenario that is reflected in the dynamics of formal work in April and May.; without doubt that in Argentina, as in most countries of the world, the pandemic puts work and production at risk, “the report explained.
This justifies “the application of the set of protection policies carried out in recent months, which has made it possible to mitigate the effects on the living conditions of workers and the sustainability of companies,” the study concluded.
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