Despite an economic growth of approximately 4% in Argentina, private sector employment of quality is declining, particularly in industry and construction.
Argentina is witnessing an unusual economic scenario where despite an average GDP growth of around 4% in 2025, registered private sector employment is in decline. This decline is noteworthy as historically, economic activity and formal job growth have moved in tandem. The apparent contradiction suggests a shift in how economic growth is translating into employment opportunities, raising concerns about the quality and sustainability of jobs being created.
The recent closure of the Fate tire factory highlights these challenges, presenting a broader issue beyond competitive debates. It exemplifies the struggles faced by traditional industries in adapting to a changing economic landscape marked by increased import openness and potentially less support for local manufacturing. Such closures have far-reaching implications for workers and the economy at large, indicating a potential shift away from stable, quality employment towards more precarious job opportunities.
The report suggests that while sectors like mining, energy, and finance are leading productive expansion, other sectors like industry and construction are experiencing significant job losses. As the Argentine economy continues to grow, questions arise regarding the quality of jobs being created and the long-term sustainability of this growth trajectory. Policymakers may need to reassess strategies to ensure that economic growth translates into robust employment opportunities for the workforce.
