A recent analysis of Argentina’s labour market revealed that conditions continued to worsen in the second quarter of 2026, influenced by increasing informality, the expansion of platform-based self-employment, and a decrease in purchasing power. According to the latest official data released by Argentina’s statistics agency INDEC on Thursday, unemployment stood at 7.9%, reflecting an increase of 0.3 percentage points from the second quarters of both 2025 and 2024, which corresponds to an additional 73,000 individuals seeking employment without success. Among the 1.2 million individuals classified as unemployed, 40% are recent entrants into the job market, having actively sought employment for a duration not exceeding three months, as reported by consulting firm LCG.
Diego Piccardo cautioned that the immediate interpretation suggesting the economy is driving individuals out of the labour market is misguided. His explanation rests on the observation that 338,000 individuals entered the labour market, while 265,000 secured employment – roughly 80% of the total. “The difference, 73,000, is exactly the increase in unemployment,” he said, adding that there was net job creation, but it was “insufficient to absorb those who decided to start looking for work.” LCG explained that the increase in the number of people entering the labour market amounts to an annual growth of 2.3%, significantly surpassing the population growth rate of 0.8% among those included in the EPH household survey. Consulting firm LCG observed that the level of informality among salaried workers is on the rise, having increased by 0.2 percentage points from the second quarter of 2025, now standing at 37.9% during the period from April to June this year. That represents the peak level in nearly 18 years, surpassing the average of the preceding decade (34.6%).
The informality rate, encompassing both salaried and self-employed workers, increased by 1.8 percentage points to reach 45%. This represents 348,000 new informal jobs, the highest level recorded since at least 2023. However, Piccardo highlighted an implication behind the figure that “is uncomfortable.” If there was a net increase of 265,000 jobs overall, counting all categories, while 348,000 new informal jobs were created, the other categories – registered salaried and self-employed workers – experienced a decline of 83,000 jobs. He cautioned that the labour market “is not creating jobs; it is restructuring itself downward.” In other words, the conditions of the labour market are experiencing a decline. “The rational response from a household [facing this scenario] is to send a second or third member into the labor market. Participation rises out of necessity, not optimism,” Piccardo added. Similarly, LCG explained that the reason behind the increase in the number of people looking for work is “the need for households to supplement their income.”
The increase in polyworkers is evidenced by the ongoing growth of self-employed individuals. They presently represent 25.5% of the total, reflecting a 1.8% increase compared to the previous year. “This dynamic is directly related to the growth of the self-employed tax regime and the gig economy,” LCG emphasized. This has been accompanied by a sustained decline in the share of salaried employees among all workers. After falling by 2% in the second quarter of 2026, their share dropped to 70.5%, a level “comparable to the pandemic.” Another indicator of working conditions and declining purchasing power is the number of hours worked by respondents in the INDEC survey. The survey indicated that 27.6% of workers are engaged in 45 hours or more of work per week. In recent years, the figure stood at 27.2% for 2025 and 26.3% for 2024.
