Feb 20 • 15:05 UTC 🇦🇷 Argentina Clarin (ES)

Employment: There Are Provinces with More 'Underground' Employees than Registered Ones

Various provinces in Argentina, including Tucumán and Santiago del Estero, now have more employees classified as 'underground' than formal workers due to a significant drop in registered employment and an increase in informality.

A recent report from INDEC indicates a troubling trend in Argentina where several provinces, notably Tucumán and Santiago del Estero, now have a larger number of employees working in informal conditions, referred to as 'in black', compared to those holding formal positions. This shift has been attributed to a significant decrease in registered employment over the past two years, driven by economic factors affecting job stability and a transition towards informal employment due to increasing financial pressures.

In 2024, while there was a slight decline in the number of informal workers, the following year saw an increase, leading many who lost formal jobs to seek employment in the informal sector either fully or partially. This rise has been linked to economic burdens, pushing family members to seek irregular employment to make ends meet as income levels have fallen across many households. As a result, the informal sector has absorbed a substantial number of displaced workers, reflecting a shift in the labor market dynamics in Argentina.

The report highlights a stark contrast in earnings, revealing that informal workers earn significantly less than their registered counterparts, with the income gap widening to under 40%. The challenges posed by this informal employment not only affect the workers' financial stability but also pose broader economic implications for provincial economies struggling with rising unemployment and underemployment, complicating efforts to stabilize the labor market and drive growth in these regions.

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