Argentina’s workforce has been evolving over the past two years: a decline in the number of young individuals entering the job market, coupled with an increase in retirees returning to work to supplement their income. The trend, as detailed by the Instituto Argentina Grande in its recent report, is progressing at two distinct speeds. The percentage of Argentines aged 66 and over re-entering the workforce increased by 12% over the last year. During this period, youth unemployment experienced a significant increase, climbing from 14% to 18%. The outlook for young individuals is particularly bleak. A decline in job-seeking behavior is evident among Argentines aged 18 to 26, with a notable decrease in available employment opportunities for those who do pursue work. The number of job seekers has decreased, yet securing employment has become more challenging, not less. Younger males are abandoning the job search more quickly than their female counterparts.
Over the past two years, labor force participation among women in that age bracket decreased by 2.4%, whereas the decline for men was 3%. “In general, when you see both unemployment and inactivity going up, it has to do with the persistence of unemployment,” Candelaria Rueda stated. Rueda states, “participation falls because people get discouraged in the face of very high unemployment and very low wages.” A third factor exacerbates the issue. “Most 18 to 26-year-olds aren’t managing a household. “So without the pressure of being the breadwinner, there’s more room to step back,” she added. The change is also evident in employees’ earnings, with salaries being significantly affected by President Javier Milei’s economic strategy. The recent report indicates that registered wages—those associated with formal employment offering improved working conditions—have diminished due to “higher inflation, a ceiling on collective bargaining and weaker union negotiating power.” The average wage has experienced a decline of 9% in its purchasing power under Milei, based on data available through February 2026. The decline may reach as much as 13% when assessed using an inflation index that more accurately represents the expenses associated with a contemporary basket of goods and services.
The two significant declines are observed among national government workers, whose wages have decreased by 37.2% since Milei assumed office, and the minimum, vital, and mobile wage — the standard typically referenced for entry-level positions — which has dropped by 35%. To provide context, the CIFRA report indicates that in March of this year, the minimum wage “reached its second-lowest monthly value in the past 32 years, barely above the historical low of June 2002.” The timing is significant: it occurred merely a few months following the collapse of Convertibility, amidst the peak of the most severe political, economic, and social crisis in the nation’s contemporary history. With a decline in the number of young individuals entering the workforce, older Argentines are increasingly compelled to re-enter the job market to supplement their earnings. The report indicates a 39% increase in the number of men aged 66 and older engaged in off-the-books work. Among women, that figure increased by 34%.
“The increase in retirees employed under unfavorable conditions indicates a decline in their income levels, primarily influenced by significant price increases in essential items that heavily impact retirees’ financial plans, including medication and health insurance. Additionally, this trend is exacerbated by the wider economic challenges facing households, where retirees frequently serve as additional income sources,” the study cautioned. CIFRA reports a decline of 18.8% in the purchasing power of the minimum pension during Milei’s administration. A distinct consultancy arrived at the same conclusion employing an alternative measure. As reported by MATE (Observatory on Labor and Economic Affairs), retirees receiving the minimum pension have experienced a decline in purchasing power equivalent to 7.4 monthly payments since Milei assumed office.