In a recent statement, Argentina's Minister of Economy, Luis Caputo, emphasized significant changes introduced by the labor reform project recently approved by the Senate. This project aims to make it more affordable to create formal employment, particularly benefiting new workers. Caputo highlighted that the reform reduces employer contributions by 85% for new jobs, a point he believes is not receiving enough attention from various sectors. He expressed his astonishment at the lack of celebration of this reform, which he views as one of the most critical aspects of the new law.

The labor reform includes the Régimen de Incentivo a la Formalización Laboral (RIFL), which will be in effect for one year for new hires. This program is designed to provide incentives and benefits to employers hiring new workers, thereby encouraging formal employment amid ongoing economic challenges in Argentina. Caputo's assertions come as the reform is set to be debated in the Chamber of Deputies, where modifications may be proposed that could lead to further discussions in the Senate.

The implications of this reform could be significant for Argentina's labor market, especially given the country's high rates of unemployment and underemployment. By reducing the financial burdens on employers through lower contributions for newly hired workers, the government hopes to stimulate job creation and move towards a more formalized workforce. The success of this initiative, however, will depend on the ability of lawmakers to pass the reform without substantial alterations that might dilute its intended benefits.