Argentina launches program to cut 20,000 public-sector jobs — Buenos Aires Times

The Argentine government has launched a voluntary separation program in the public sector aimed at cutting another 20,000 jobs. As Buenos Aires Times reports, the program will run for one month starting on November 1.

Terms of the program

The relevant decree was published in Argentina’s Official Gazette. The document states that the initiative aims to ensure the proper and efficient allocation of public resources.

Minister of Deregulation and State Transformation Federico Sturzenegger said the authorities continue to look for ways to reduce public spending in order to further lower taxes. The program provides for different payment amounts depending on an employee’s age and length of service. Participants will also be barred from returning to work in the public administration for the next eight years.

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Union reaction and employment data

The ATE public employees’ union announced a demonstration against the new scheme. Its secretary-general, Rodolfo Aguiar, called the program a forced dismissal and said the union completely rejects the decree.

According to data released by Sturzenegger in September, since President Javier Milei took office in December 2023, the number of jobs in the national public administration has fallen by 21%, or about 77,500 positions. At the same time, official data show that Argentina lost up to 241,000 salaried jobs in the private sector during this period. The number of private employers fell to 482,000 companies, the lowest level since 2007, according to the Fundar think tank.

Sturzenegger also reported the creation of around 400,000 jobs, but this figure includes informal employment and self-employed workers. Argentina’s informal employment rate has risen by three percentage points over the past three years, to about 45%.