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The Government assures that the fall in employment has been halted: “Companies are encouraged to hire” - Infobae
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El Gobierno asegura que se frenó la caída del empleo: “Las empresas se animan a contratar”
El secretario de Trabajo marcó un cambio de tendencia en el mercado laboral. Confirmó que esta semana se publicará la reglamentación de la reforma laboral
www.infobae.com
September 09, 2024
The Secretary of Labor pointed out a change of trend in the labor market. He confirmed that the regulations of the labor reform will be published this week.
Julio Cordero , Secretary of Labor, said that the fall in employment has stopped and, at the same time, a trend towards greater hiring of workers in the private sector is observed.
According to Cordero, this change is due to the recent measures implemented by the government of Javier Milei, focused on providing “greater legal security to companies,” which has allowed “generating confidence and energizing the labor market.”
“The numbers show that, for about three months now, we have been measuring the situation perfectly. From June to July, there was a drop, but the index that shows the decrease in employment remained neutral, and previously unemployment was not high,” said the official in conversation with Eduardo Feinmann on Mitre radio . According to Cordero, this stabilization of employment is relevant news, since historically, in similar economic situations, unemployment rates have been considerably higher.
The Secretary of Labor referred to the government's concern about the increase in the unemployment rate, which rose from 6.6% to 7.7 percent in the last official measurement. Although he acknowledged that this increase is not drastic, he stressed that it is a cause for concern for the Casa Rosada, especially in a complex economic context. “We are going to try to sustain it. The index shows that it has stopped, and that is important, because we do not only see that it has stopped, but because there is a tendency to hire ,” he said.
The Secretary of Labor attributed much of the recent employment stagnation to a lack of hiring, rather than mass layoffs. “The drop was due more to inaction in hiring than anything else. The downward trend in unemployment was mainly due to a lack of new hires, and that worried us a lot,” Cordero explained. In this regard, he stressed that the reforms promoted by the government in the “base law” have managed to create a framework of confidence: “ Companies are encouraged to hire .”
Julio Cordero, Secretary of Labor
On the other hand, Cordero also addressed the wage situation, highlighting that there has been a gradual recovery in recent months, especially in the formal sector, which is monitored through official statistics. “We care a lot that the recovery is real. If inflation takes it away from you, it is useless. What must be achieved is that the salary rises without impacting inflation, so that the increase is real,” he said.
In the first quarter of 2024, the unemployment rate in Argentina rose to 7.7%, according to INDEC, up from 5.7% at the end of 2023. This increase represents approximately 415,900 more unemployed people, with a significant drop of 612,500 jobs, mainly in the informal sector. Young women (14-29 years) were the most affected, with an unemployment rate of 17.3%. The hardest hit regions were Greater Buenos Aires, with an unemployment rate close to 10%, and other areas such as San Nicolás and La Plata.
Labor reform
Cordero also reported that they finished working on the regulations for the labor reform included in the Ley Bases. The text of the norm will probably be known this week. “We were working over the weekend, and we have considered the points of view of all sectors. Labor norms strongly impact the entire population, that is why we listened to what employees, unions and also the opinion of the Ministry of the Economy, the Central Bank and Deregulation need,” he said.He anticipated that the resolution will incorporate a new system of severance pay. The new scheme will give employers and unions new mechanisms to negotiate in collective bargaining agreements. “The compensation of article 245 of the Labor Contract Law is maintained, that is the basis, and based on that, an unemployment regime is established that can be included in the collective agreement, negotiated between the chambers and the unions,” he explained.
He added: “They will sit down at each activity to negotiate how to position themselves in relation to other alternatives that may be better for both parties, so much so that if after negotiating, the employer or the worker do not want to adhere to the regime, they will not do so.”
Article 245 of the Argentine Employment Contract Law establishes that, in the event of dismissal without just cause, the employer must pay the employee compensation. This is calculated based on the last monthly salary, which includes all remuneration items, and is multiplied by the employee's years of service in the company. The objective is to compensate the worker for the loss of employment, providing economic protection against the abrupt termination of the employment contract.
