Economic growth without labor spillover
The Government highlighted the positive activity indicators. GDP grew, and the figures support it. However, this rebound did not come accompanied by an improvement in formal employment, nor by a sustained expansion of the productive fabric. Argentina went through an uncomfortable situation in 2025: the economy advanced while the labor market showed signs of deterioration.
Fewer companies, less registered employment
Economic activity increased by 4.4% in the last year. But in parallel, both the number of operating companies and formal jobs decreased. This was not an isolated episode: since the beginning of the current administration, more than 22,600 productive units have ceased operations, which implies a contraction of 4.4% of the total. Simply put, the rate of closures outpaced that of new openings, creating a dynamic that is difficult to reconcile with a growth scenario.
A concentrated growth with low labor intensity
To understand this contradiction, we must look at the composition of growth. The most dynamic sectors in 2025 were finance, mining, and agriculture. Together, they account for only 7.2% of registered employment, according to data from the Inter-American Development Bank (IDB), which is consistent and reliable within the regional analysis.
In contrast, activities like industry, commerce, and construction—traditionally major job creators—lagged behind or showed marginal advances. The conclusion is direct: the sectors that drove growth are, at the same time, those that demand the least labor.
More unemployment and lower quality jobs
The impact on the labor market is clear. The unemployment rate rose from 6.4% to 7.5% between the end of 2024 and the end of 2025, which translates to surpassing one million unemployed people. There is no widespread collapse of employment, but neither a solid recovery.
Even more concerning is the quality of the available positions. There has been a decline in formal private employment and an increase in informal work, leading to lower stability, lower income, and a lack of basic labor rights.
Informality as a structural feature
Unregistered work remains one of the main problems of the Argentine labor market. Nearly six million people work informally, without access to health coverage, pension contributions, or licenses. It is a structural reality that limits any sustainable improvement.
The phenomenon hits young people particularly hard. Among those under 29 years old, informality reaches 58.7%. In other words, almost six out of ten young people work under precarious conditions.
A generational gap that is increasingly pronounced
Unemployment data also reflect strong age inequality. Among young men, unemployment reaches 16.2%, while among adults aged 30 to 64, it hovers around 4.5%. In concrete terms, one in six young people looking for work cannot enter the labor market.
The paradox is evident: the economy is growing, but a significant part of the population—especially the youngest—remains on the sidelines of that improvement.
Structural factors explaining the decoupling
The causes of this phenomenon are multiple. Among them are the appreciation of the exchange rate, trade opening, the tax burden, and high operating costs, which hinder the expansion of companies and the generation of employment.
Adding to this is a deeper factor: the nature of growth. When the impulse comes from sectors like agriculture, mining, or finance, the impact on employment is limited. These are activities that can increase their production without needing to incorporate large numbers of workers.
A paradox with political limits
The underlying question is how long this scheme can be sustained. Growth that does not generate formal employment, does not generally improve income, and coexists with high levels of informality presents inevitable tensions.
The challenge is not just to grow, but to define how to grow. Because an economy that improves in macro indicators but fails to integrate its population into the formal labor market does not consolidate a model: it accumulates a contradiction. And contradictions, sooner or later, demand resolution.
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