Argentina's Rising Unemployment Rate Amid Labour Reforms

Argentina's unemployment rate reached 7.5% at the end of 2025, marking the highest fourth-quarter figure since the onset of the Covid-19 pandemic. This represents a significant increase from 6.4% in the same quarter of 2024 and a rise from 6.6% in the previous quarter. The national statistics agency, INDEC, reported that approximately 1.1 million individuals were classified as unemployed, which translates to about 1.7 million when projected onto Argentina's population of 47.5 million. The Greater Buenos Aires region recorded the highest unemployment rate at 8.6%, followed by the Pampas region at 7.7%.

Argentina unemployment rises to 7.5% at end-2025, Indec saysBuenos Aires Times

The increase in unemployment coincides with the administration of President Javier Milei, who has implemented a series of labour reforms aimed at easing hiring and firing regulations. Since taking office, Milei's government has cut over 200,000 salaried jobs in the formal sector, which constitutes about 3% of the total. Despite these cuts, the overall unemployment rate has not consistently surged, partly due to a rise in informal employment, which remains steady at around 43% of the workforce.

Buenos Aires TimesArgentina unemployment rises to 7.5% at end-2025, Indec says

In February 2026, Congress passed a modified version of Milei's labour reform, which was met with approval from financial markets. However, economists caution that the reform is unlikely to yield immediate job growth, as economic activity remains sluggish and consumer spending is low. The labour market is characterized by a high proportion of precarious employment, with only 56.9% of workers in formal jobs.

Buenos Aires Times

The employment landscape in Argentina reveals a stark contrast between formal and informal sectors. Among the employed population, 9.7 million are wage earners, while 3.8 million are non-wage workers, predominantly self-employed. The report highlights that 86.9% of non-wage workers are self-employed, with a significant portion of the workforce engaged in informal employment. Additionally, 29.2% of employed individuals are overemployed, working more than 45 hours a week, while 12.3% are underemployed, working fewer than 35 hours.

Argentina unemployment rises to 7.5% at end-2025, Indec says

Critics of Milei's labour reforms argue that while the measures may appeal to market interests, they do not adequately address the underlying issues of job creation and economic stability. The reliance on informal employment raises concerns about job security and workers' rights, which could exacerbate the challenges faced by the Argentine workforce.

Buenos Aires Times

While the INDEC report indicates a significant rise in unemployment, some economists suggest that the actual impact of Milei's policies may take longer to manifest. There is also a noted discrepancy in the effectiveness of the labour reforms, with some analysts questioning whether the changes will lead to sustainable job growth in the near future.

Buenos Aires Times

“While markets applauded the reform, economists warn it’s unlikely to quickly translate into job gains as economic activity sputters, consumer spending remains down and labour-intensive industries are struggling to compete as Milei opens up the economy.” — Patrick Gillespie, Bloomberg

Buenos Aires Times