Unemployment in Argentina has increased to 6.4% in Q4 2024, rising from 5.7% in 2023, with a significant impact on women and regions like Greater Buenos Aires. The labor market pressure has also escalated, with nearly 1.47 million people unemployed. Additionally, hotel occupancy has fallen, impacted by the currency’s appreciation, while efforts continue to secure an IMF loan to stabilize economic conditions.
In the fourth quarter of 2024, unemployment in Argentina rose to 6.4%, a 0.7-point increase from 5.7% in Q4 2023, although it marked a decrease from 6.9% in Q3 2024, according to the National Institute of Statistics and Census (Indec). The unemployment rate was higher in the Greater Buenos Aires area at 7.1% and lower in Patagonia at 4%, with women facing a higher unemployment rate (6.9%) compared to men (6.1%).
The report indicates that 72.5% of the unemployed individuals have been jobless for less than a year, while 27.6% have experienced longer periods of unemployment. The labor market pressure, encompassing the unemployed, underemployed, and job seekers, increased to 29.4%, which is a two-point rise year-on-year. Nationwide, there are approximately 1.47 million unemployed individuals, representing an increase of 180,000 from the previous year.
Moreover, hotel occupancy in February 2025 fell by 0.2% year-on-year, with 1.97 million travelers reported. The appreciation of the local peso against the US dollar has deterred foreign tourists, resulting in higher local prices relative to international standards. While resident travel increased by 4.6%, non-resident travel declined by 14.7%.
Buenos Aires province recorded the highest proportion of overnight stays at 27.8%, closely followed by Patagonia with 22.6%. The average duration of hotel stays was 2.8 nights, and for parahotel accommodations, it was 3.4 nights. The leading tourist destinations included Mar del Plata, San Carlos de Bariloche, and Villa Carlos Paz.
Despite the Libertarian Government of President Javier Milei successfully reducing inflation from 211% in 2023 to 117% in 2024, economic activity remains stagnant due to a lagging dollar and declining Central Bank reserves. The administration aims to secure an IMF loan by mid-April to strengthen reserves amidst uncertainties related to currency valuation and elevated demand for dollars.
Of the 29.8 million urban residents, 14.5 million constitute the economically active population (EAP), with 13.6 million employed and almost one million unemployed but actively seeking work. Educational statistics reveal that 71.2% of the unemployed individuals have completed high school, whereas only 28.9% have attended college, irrespective of graduation status.
The report from Indec highlights a significant rise in unemployment in Argentina, with elevated joblessness rates particularly affecting specific regions and demographics. Despite a reduction in inflation, economic stagnation persists, compounded by challenges in the labor market and a decline in tourism. The government faces ongoing pressure to stabilize the economy and maintain reserves, underscoring the importance of addressing these issues to foster recovery.
Original Source: en.mercopress.com
