Introduction
Despite a favorable start to 2026 with the dollar at a lower value and inflation closing out 2025 at its lowest level in eight years, Argentina’s labor market remains in a precarious state. The latest data from the SIPA report, covering October 2025, confirms a worrying trend: registered employment has lost 33,134 jobs, marking the largest drop of the year and extending a five-month consecutive decline.
Registered Employment Decline
The monthly decrease of 0.3% (deseasonally adjusted) has led to a total loss of 471,937 formal jobs in the past year, representing a 3.6% interannual decline.
Private Sector’s Struggles
The private, salaried sector has been hit particularly hard. In October alone, this core segment of the formal labor market lost 17,900 jobs, accounting for more than half of the total monthly decline. Over the past five months, the private sector has shed 71,000 jobs, indicating a persistent negative trend since mid-2023 that has stalled employment at levels similar to 2012.
Sector-wise Analysis
An LCG consultancy report analyzed October’s data and concluded that the decline affects almost all economic sectors.
- Manufacturing: Leading the losses with 6,718 fewer jobs (-0.6% monthly deseasonally adjusted). Within manufacturing, textiles suffered the most with 2,016 job losses, followed by food (1,254) and metal-mechanical industries (1,090).
- Construction: Lost 1,912 jobs in October (-0.5% monthly), adding to November’s 4.1% activity decline, signaling further job losses in the coming months.
- Mining: Experienced a 0.5% monthly decrease, losing 435 jobs.
- Commerce: Lost 3,982 jobs in October (0.3% monthly).
Key Questions and Answers
- What is the current state of Argentina’s labor market? The formal labor market in Argentina is facing a deepening crisis, with registered employment losing 33,134 jobs in October alone and a total loss of 471,937 formal jobs in the past year.
- Which sectors are most affected? Almost all economic sectors are experiencing job losses, with manufacturing, construction, and commerce being particularly hard-hit.
- What does this mean for the future of employment in Argentina? The persistent negative trend suggests that the labor market will continue to struggle, with employment levels potentially stagnating at 2012 levels.
