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According to a study by the consultancy Tendencias Económicas, the labour market in Argentina is struggling with very few signs of improvement expected in the coming months.
According to the report, which is based on official information, union complaints and press releases there 4,758 there were layoffs in February this year, 18 times more than in the same month of 2013. While there were layoffs in different sectors such as auto, construction and communications, the highest number of layoffs occurred in the electrical sector.
According to the head of research at IDESA, (Argentine Institute for Social Development) Jorge Colina, restrictions on imports and the rise in interest rates have caused a slowdown in economic activity and a drop in demand, which has caused a contraction in the labour market.
However, the report did note a fall in the number of strikes despite the sharp decline in real wages due to the accelerating rate of inflation (believed to be around 30%). The number of workers involved in a strike in February totalled 464,000, five times less than a year ago. Stoppages are predicted to rise, however, in the coming months given expected difference between the wage increases demanded by unions and offered by the Government.
The employment situation in the sector is not expected to improve in the coming months either with the latest survey by Manpower Employment Outlook shows a drop in the number of companies planning to increase staffing in the coming months.