Wages lost 3.6% against inflation in the first two months of quarantine

Ismael Bermúdez

06/13/2020 - 10:15

• Clarín.com
• Economy
• Economy

In the first two months affected by the pandemic and quarantine, wages for registered workers fell 3.6% relative to inflation. And it is estimated that this fall in real wages will continue in the coming months with a loss of 10% in the year.

According to the RIPTE (Taxable Remuneration for Stable Workers) prepared by the Secretary of Social Security, based on the statements of the companies, in March the wages of workers in relation to dependency rose 0.9% compared to inflation of 3 ,3%. And in April, wages increased 0.1% and inflation was 1.5%.

In addition, there was a reduction in the number of registered workers: data from the Ministry of Labor indicate that in March - with 10 days of quarantine in force - 45,100 jobs were lost for workers in a dependency relationship . And in April, according to the Labor Indicators Survey (EIL), “the level of private employment registered in companies with more than 10 workers of the total agglomerates surveyed, fell 0.6% in relation to the previous month. This is the biggest monthly drop in April, with the exception of April 2002, when the decrease was 0.8% ”.

In April, the average gross salary was $ 56,955.63 . With retirement and health discounts, there is a net or pocket income of $ 47,273.17. They are $ 675 at the official exchange rate or almost 400 in the alternative dollars.

For Lorenzo Sigaut Graviña , from the Ecolatina consulting firm , the pandemic changed the work scenario. “The quarantine postponed the joint negotiations, which limited the rise in wages in the second quarter. Furthermore, several weight unions agreed suspensions (charging 75% -80% of salary) in exchange for job stability for those workers in non-essential activities and who could not perform their tasks virtually / remotely. Therefore, during the second quarter there is a drop in pocket wages for suspended formal private workers. ”

Sigaut Graviña estimates that when the quarantine and restructuring of the public debt foreign law ends, " inflation would accelerate -regulated or maximum prices cannot be held indefinitely frozen-, and although joint negotiations will resume," in our scenario more The formal salary is likely to close 2020 with an increase of 37% and inflation around 45%.

Juan Pablo Di Iorio, from the ACM consultancy, predicts that this year the salary would grow around 30%, which would represent a 10% drop in real terms under our projections of 44% inflation. And he adds that “although there was a sharp adjustment in real wages during these months of greatest inactivity, the biggest problem that the current crisis will bring will be via amounts. The restrictions and greater frictions of the labor market added to a more flexible monetary policy have led to the Argentine labor market generally adjusting via price (real wage) and not so much via quantities (unemployment) . However, in the current crisis, these frictions not only cause less dynamism in the recovery, but in the face of a total brake on production , the original shock amplifies and ends up having a longer-term effect on unemployment. ”

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