The 12 years of economic stagnation in Argentina are reflected in the Santa Fe labor market
A report on the labor market in Santa Fe, presented in the Chamber of Deputies by the socialist Joaquín Blanco, shows that the province is in a situation of stagnation in terms of its employment rate, a marked decrease in the salaried population and an increase in informal work in the last 12 years. This document aims to analyze the characteristics of the labor market in the province of Santa Fe at a global level and its 19 departments.
The publication is based on recently published information from the National Population and Housing Census 2022 (CNPV 2022), the Provincial Institute of Statistics and Censuses (IPEC), the National Population and Housing Census 2010 (CNPV 2010), INDEC, the Center for Production Studies (CEP) and the Federal Administration of Public Revenues (AFIP). On the other hand, data from the Argentine Integrated Pension System (SIPA) provides information on salaried employment registered by departments.
The 16-page report shows that the activity rate in Santa Fe is around 64% in the population over 14 years of age, which means a slight drop compared to the 2010 Census: this represents a decrease in the job offer. For its part, the employment rate also decreased by 2.1%, going from 61.18% in 2010 to 59.4% in 2022. This is reflected in an increase in the unemployment rate of 2.08%.
The text indicates the drop of almost 10% in the proportion of salaried employment and the increase of the same amount in the proportion of self-employment (from 19.3% in 2010 to 29% in 2022). The report indicates that “this trend is usually interpreted as an indication of greater informality in the labor market since it is associated with the growth of small and one-person businesses.” At the same time, the decrease in the number of the population that is an employer stands out: it went from 8.9% to 5.6% in 12 years.
It also breaks down an analysis by occupational category that is consistent with the data on the proportion of employees who do not deduct or contribute retirement. This percentage reached 30.9% of employees in 2010 and rises to 32.3% in 2022. For its part, the proportion of the total population that does not have health coverage (social work or prepaid), remained at similar levels. between both Censuses, being 28.5% and 28.6% in 2010 and 2022, respectively.
That is, one in three working Santa Fe residents do not make retirement contributions or have health coverage such as social or prepaid benefits, as a result of the increase in labor informality.
Deputy Blanco’s report highlights a “marked heterogeneity” in the provincial territory: Santa Fe had 1,667,277 employed people in 2022. There are six departments that concentrate 76.4% of the employed population: Rosario (38.5%) ; The Capital (15.8%); Gen. López (6%); Castellanos (5.7%); San Lorenzo (5.4%) and Gral. Obligado (5.0%).
The document details that the average gross salary, until November 2023 (latest information available), amounted to $538,469, ranking eighth in the country among the provinces with the highest average salary, and this value being similar to the national average ($540,595). “Six departments were located above the provincial average salary of registered employees: San Lorenzo, Constitución, Castellanos, La Capital, Rosario and San Martín. While Belgrano, 9 de Julio and San Javier have the lowest salaries, which are on average 17% below the provincial value and 34% below the highest value that corresponds to the San Lorenzo department ($676,746),” it is listed.
The study states that this “demonstrates a persistence of broad imbalances in the level of development between the departments in the north of the province, the center and the south. These gaps occur fundamentally in aspects linked to the quality of employment such as the proportion of precarious employment (absence of retirement discount), the lack of health coverage and the lower educational level, in relation to the provincial average.
“We believe that it is necessary to territorialize public policy aimed at producing positive impacts on the labor market; The data clearly demonstrate that we live in a province with great productive diversity, but with territorial imbalances, where we can detect regions with very disparate labor and income indicators,” summarizes the document presented by deputy Joaquín Blanco.
“We need strategic planning and long-term policies, institutionalized by law, that give continuity over time to job training, labor intermediation, and public/private participation, generating a virtuous circle between the state, business chambers and unions. . In each territory, be they departments or regions, we need the institutions and the municipalities and communes to take ownership of the policy and the provincial state to provide the framework and tools to carry them forward,” it is added.
“Although the macroeconomy and the national legislative framework determine the dynamics of the labor market, we believe that the province can promote tools and policies to promote sustainable economic development, the creation of decent work and the promotion of education, training and training for the labor insertion of citizens, taking into account the strengths and resources of each region,” he concludes.
The full report can be found at this link:
https://dipsocialistas.org/wp-content/uploads/2024/05/StaFe_Mercado_Laboral-03MAY.pdf
