MercoPress. South Atlantic News Agency

Unemployment keeps growing in Argentina

Consumption was also reported to have decreased significantly

According to a report from Argentina's National Institute of Statistics and Census (Indec), unemployment in the South American country reached 7.6 % in the second quarter of 2024. The figures were consistent with the 7.7% recorded in the previous trimester but represented a sharp interannual deterioration from the 6.2% during the same period of 2023.

The underemployment rate of people who work 35 hours a week but would like to work more, was 8.1%, also a setback from 7.4% last year while under-employed non-demanding workers amounted to 3.7%, slightly above the 3.2% of the first quarter, and similar to that of April-June 2023. In addition, there was a 1.7% decrease in the Gross Domestic Product (GDP).

Sorted out by regions, the Greater Buenos Aires Area topped the unemployment ratings with 8.3%, followed by the Northeast region with 7.8%, the Pampean region with 7.6%, Patagonia with 5.4%, the Northwest with 5.2%, and Cuyo with 5.1%. The lowest unemployment rates were recorded in Santiago del Estero (0.7%) and the twin cities of Viedma-Carmen de Patagones (0.9%).

Of the total working population, 73.8% were found to have a salary, 23.0% are self-employed, and 3.0% are job-offering entrepreneurs.

In this scenario, private pollsters detected that consumption fell 17% on average in August while some products posted a decrease of about 30%.

The consulting firm Nielsen IQ found a significant yoy drop in mass consumption, with food falling 15.8% and beverages 17.7% (alcoholic beverages 27.2% / non-alcoholic beverages 13.9%). Personal care and cleaning fell 16.7% last month (household cleaning and laundry 18.5% / cosmetics and toiletries 15.9%).

Pollsters Scentia said mass consumption plummeted 17.2% in August, the highest figures since March 2021, when an 18.3% drop was recorded. Non-alcoholic beverages fell 24.7%, alcoholic ones 24.3%, hygiene and cosmetics 20.1%, clothes and home cleaning 15.9%, breakfast and snacks 14.4%, food 12.4%, and perishables 9.4%.

Meanwhile, trade exchange left a surplus of US$ 1,963 million, thus reversing a US$ 974 million deficit, according to the Indec, as a result of a 15% improvement in exports, which amounted to US$ 6,793 million, against imports that dropped almost 30% to US$ 4,830 million. The recovery in foreign sales was mainly due to a 20% increase in the quantities sold, which compensated for the 5% decrease in prices, especially in agricultural products.