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Job conversion: leaving a formal job to become self-employed means losing almost 30% of real wages
AR🏛️ PoliticsCenter5 hr. ago

Job conversion: leaving a formal job to become self-employed means losing almost 30% of real wages

In Argentina, many workers are transitioning from formal employment to self-employment or informal work due to rising unemployment, but this shift comes at a significant cost to their income. According to a report by consultancy firm C-P, those who moved to self-employment lost nearly 27.8% of their real salary, while those entering informal jobs lost 13.9%. The study highlights that the growth of informal employment has become a 'refuge' for workers facing job losses in the formal sector, helping to stabilize overall unemployment rates but deepening income inequality and reducing household purchasing power. The report notes that since 2024, informal employment has grown to account for 44.2% of total employment, driven both by job destruction in the formal economy and the creation of low-income opportunities. Meanwhile, those remaining in formal private-sector jobs were the only group to maintain or improve their real incomes during the period studied.

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Perfil logoPerfilIndependentCenter5 hr. ago
Job conversion: leaving a formal job to become self-employed means losing almost 30% of real wages

In Argentina, many workers are transitioning from formal employment to self-employment or informal work due to rising unemployment, but this shift comes at a significant cost to their income. According to a report by consultancy firm C-P, those who moved to self-employment lost nearly 27.8% of their real salary, while those entering informal jobs lost 13.9%. The study highlights that the growth of informal employment has become a 'refuge' for workers facing job losses in the formal sector, helping to stabilize overall unemployment rates but deepening income inequality and reducing household purchasing power. The report notes that since 2024, informal employment has grown to account for 44.2% of total employment, driven both by job destruction in the formal economy and the creation of low-income opportunities. Meanwhile, those remaining in formal private-sector jobs were the only group to maintain or improve their real incomes during the period studied.

Bias read (Center): The article presents statistical findings from a third-party consultancy (C-P) and references economic trends without overtly favoring any political side. It discusses the impact of informal employment on wages and economic stability, which is a politically sensitive issue, but the framing remains客观

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