The Argentine labour market presents a paradox: employment is growing but precariousness is skyrocketing. The informality rate reached 44.2%, the highest level in years, according to a report from the Centre for Studies on Labour and Development (CETyD).
The Argentine labour market is experiencing an increasingly marked contradiction. The labour informality rate reached 44.2%, one of the highest levels in recent years, according to the latest Sociolaboral Monitor from the Centre for Studies on Labour and Development (CETyD). This phenomenon occurs despite an increase in the number of employed individuals.
The report, which covers the period from early 2025 to the first quarter of 2026, reveals that the jobs that grew were exclusively informal, both among salaried workers and independent workers. Behind the apparent stability of the unemployment rate lies a loss of job quality.
More employed, but with insufficient income
CETyD warns that the increase in employment does not reflect a genuine improvement in the labour market. On the contrary, it states that over 90% of the new employed individuals need to work more hours to increase their income, but face difficulties in doing so due to weak consumption.
In the case of salaried workers, the available hours are insufficient; independent workers face inadequate demand to expand their sales. This situation translates into an increase in underemployment. The report attributes this phenomenon to the deterioration of household incomes and the loss of purchasing power.
The activity rate reached 48.6%, a recent historical high, indicating that more people are entering the market to supplement household income. However, the formal sector is unable to absorb this increased supply of workers.
Precariousness extends across the provinces
The deterioration of the labour market also has a marked territorial dimension. Between late 2023 and 2025, two-thirds of the provinces recorded an increase in the unemployed population or those employed in so-called 'refuge jobs', a category that includes informal low-skilled occupations, few hours worked, and low income.
Santa Cruz and Formosa led the deterioration, driven by a strong contraction in construction and, in the case of the Patagonian province, by reduced hydrocarbon activity in the San Jorge Gulf basin. Chaco also experienced a similar evolution due to the contraction in construction. The same dynamics were observed in northern provinces such as Misiones, Catamarca, Corrientes, and Santiago del Estero.
In contrast, Río Negro, Neuquén, and Tucumán showed relatively more favourable performance. In the first two cases, the boost from Vaca Muerta helped sustain formal private employment and reduce the number of unemployed or those in precarious jobs. Tucumán also recorded a simultaneous improvement in formal employment and a decrease in the population in a situation of labour vulnerability.
No 'creative destruction'
In conclusion, CETyD asserts that the Argentine labour market is not undergoing a process of 'creative destruction', where lost jobs are replaced by others of higher productivity or quality. On the contrary, there is a direct relationship between the reduction of formal private employment and the growth of unemployment and more precarious occupations.
For Spanish workers interested in the Argentine situation, this dynamic reflects similar risks in economies with high volatility. The lesson is clear: the quality of employment matters as much as the quantity, and informality can erode purchasing power even when employment figures improve. The complete CETyD report will be available in the coming days for consultation.
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