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In April, 228,400 registered jobs were lost, despite the fact that layoffs are prohibited and there is double compensation.


It is the worst in recent years. In four months, 390,000 jobs were lost among dependent and independent workers.

Ismael Bermúdez

07/03/2020 - 18:42

  • Clarí
  • Economy
  • Economy

In April, there was a collapse of registered employment. Data from the Ministry of Labor registered 228,400 fewer workers than in March, 185,800 less in the seasonally adjusted version and 364,000 fewer than in the same month of 2019, according to data from the Ministry of Labor. From 11,983,100 registered in March, it decreased to 11,754,700 in April.  

This loss of jobs continued in May because "the survey of expectations regarding the future evolution of employment continued to be negative, although somewhat less than what was observed in the previous two months," according to the Ministry's Survey of Labor Indicators (EIL) .

From these data it is discounted that it includes informal employees and self-employed workers ("in black"), the drop in employment was even much higher. 

On the other hand, in April the average gross nominal remuneration reached $ 56,837 while half of the employees was less than $ 44,846. "In real terms , taking into account the variation in the price level, in April 2020 the average remuneration fell 5.1%, compared to the same month the previous year and the median remuneration decreased 2.8%." .

With these numbers in the first 4 months of this year, the loss of jobs affected 390,600 independent and dependent workers . Of 12,145,300 in December 2019, 11,754,700 were recorded in April. And if the comparison extends to December 2017 - when there were 12,387,300 registered - the loss of formal jobs in this long period of stagnation, recession plus pandemic and quarantine adds up to a whopping 632,600 jobs.

All this fall in occupational employment occurred despite the fact that since December 13 of last year, double compensation for dismissals without cause attributable to the worker has been in force. And since March 31 the prohibition of layoffs.

The loss of employment was mainly due to the contraction of private salaried employment, which decreased in 12 months from 6,126,500 to 5,804,700: there are 321,800 fewer workers, equivalent to a 5.3% drop. Compared to March, they are 183,800. fewer workers, In relation to April 2019, the set of private employees decreased by 321,800 workers while it increased in the public sector by 30,400 employees. Among the private house workers, the job loss was 11,600 workers.

Among self-employed workers, the drop of 47,500 jobs covered all categories: 12,700 less among the self-employed, 32,200 less in Monotributistas, 2,600 less in social monotributistas.

By activities, only social and health services could sustain a positive year-on-year variation in the number of registered employees (+ 0.1%). The rest of the activities presented a drop in employment in the last year. The most relevant sectors with year-on-year falls are: Construction (-28.3%); Hotels and restaurants (-11.2%), Fishing (-5.6%) and Community, social and personal services (- 4.4%). For its part, the manufacturing industry and commerce and repairs also showed sharp falls in their employment levels (-4.1% and -3.2%, respectively), ”highlights the Labor Report.

In turn, during May, according to the information revealed by the Survey of Labor Indicators (EIL), the drop in salaried employment continued to be 0.4% in private companies with more than 10 workers (in the main agglomerates of the country), which is equivalent to almost 25,000 less formal employees.

According to the Work Report, “although the preventive and compulsory social isolation declared in the framework of the COVID pandemic was in full force in May 19, the reopening of some activities in addition to those declared essential had already been authorized, to the Once, in various sectors and geographical areas, mechanisms could be put in place to adapt to the new conditions. In any case, this result is still negative, registering the largest monthly drop in May, with the exception of May 2002, when the decrease was 0.8% ”

Source: clarin

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