In the first quarter of 2025, Argentina experienced an increase in unemployment, reaching 7.9 percent, as reported by the INDEC national statistics bureau. This figure indicates a rise of 1.5 points relative to the 6.4 percent noted during the October-December 2024 timeframe. It experienced an increase relative to the January-March quarter of 2024, albeit by a mere 0.2 points.
The new rate signifies a cessation of the downward trend in unemployment that had been noted since the second quarter of 2024. The activity rate, which quantifies the economically active population relative to the total, experienced a slight decline to 48.2 percent. This suggests a decrease in the number of individuals actively seeking employment, having previously been at 48.8 percent during the period from October to December 2024.
Last week, the Buenos Aires City government released its own report on unemployment, as compiled by statisticians. Unemployment in the capital experienced an increase in the first quarter, rising from 6.7 percent in the final quarter of 2024 to 7.8 percent in the initial three months of 2025, as indicated by the data.
According to INDEC, the first quarter of 2025 saw a total of 1,136,000 individuals unemployed across the 31 primary urban agglomerations surveyed. Specifically, individuals who engaged in job searching efforts yet were unsuccessful in securing employment. A year prior, during the corresponding period of 2024, the figure was 1,088,000, indicating an increase of approximately 48,000 individuals currently unemployed. The national unemployment figure stands at 1,807,000, reflecting an increase of 68,085 compared to the previous year.
Daniel Schteingart, Director of Productive Planning at Fundar, noted that the comparison with the first quarter of 2023 is “even worse, as around 250,000 more people have become unemployed since then.” Indeed, during the first quarter under the current administration – following a 118 percent devaluation of the peso, a peak in inflation, and a decline in economic activity – unemployment increased significantly.
Labour market data for the first quarter of 2025 appear to be disappointing. “Although the economy has picked up, unemployment hasn’t gone down,” Schteingart noted on social media. He explained that unemployment increased from 7.7 percent to 7.9 percent, indicating that approximately 250,000 additional individuals are unemployed compared to the first quarter of 2023, when the rate was 6.9 percent. The specialist also observed that “formal employment continues to decline.” In the first quarter of 2025, a mere 46 percent of individuals engaged in the labor force had secured salaried positions. The current figure represents the lowest point observed since 2007. He added: “There is growth in self-employment and other non-salaried forms of work, and a trend towards precarious employment that has been ongoing for a decade is becoming increasingly entrenched.”