Argentina’s unemployment rate increased to 6.4% in Q4 2024, with notable disparities by region and gender. Despite a drop in inflation, economic stagnation continues amid a challenging labor market. The tourism sector is also affected, as hotel occupancy declined, primarily due to reduced foreign travel. The government is seeking an IMF loan to strengthen reserves amidst ongoing economic concerns.
According to a report from the National Institute of Statistics and Census (Indec), Argentina’s unemployment rate rose to 6.4% in the last quarter of 2024, marking an increase of 0.7 percentage points from 5.7% in the fourth quarter of 2023. This figure is a decrease from 6.9% in the previous quarter. Unemployment rates were notably higher in the Greater Buenos Aires area at 7.1% and lower in Patagonia at 4%. Furthermore, women faced higher unemployment at 6.9% compared to men at 6.1%.
The report indicates that 72.5% of unemployed individuals have been jobless for less than a year, while 27.6% have been unemployed for a longer duration. The overall labor market pressure, which includes the unemployed and underemployed, rose to 29.4%, increasing by 2 points from the previous year. Currently, roughly 1.47 million people are unemployed nationwide, representing an increase of 180,000 compared to last year.
In February 2025, hotel occupancy rates dropped by 0.2% year-on-year, despite 1.97 million travelers visiting. This decline is attributed to a decrease in foreign tourists due to the local peso’s appreciation against the US dollar, making prices relatively high. While resident travelers increased by 4.6%, non-resident travelers decreased by 14.7%. Overnight stays totaled 5.6 million, exhibiting a 1.2% year-on-year drop.
Buenos Aires province recorded the highest overnight stays at 27.8%, followed by Patagonia at 22.6%. Travelers stayed an average of 2.8 nights in hotels, whereas parahotel accommodations averaged 3.4 nights. Popular tourist destinations include Mar del Plata, San Carlos de Bariloche, and Villa Carlos Paz.
The Libertarian government under President Javier Milei has effectively reduced inflation from 211% in 2023 to 117% in 2024. However, challenges persist as a lagging dollar continues to stagnate economic activities, coupled with declining Central Bank reserves due to interventions aimed at stabilizing the currency. The government is pursuing an IMF loan by mid-April to strengthen its reserves amid uncertainties regarding the crawling peg and increased dollar demand.
Urban Argentina has a population of 29.8 million, with 14.5 million being part of the economically active population (EAP). Within this group, 13.6 million individuals are employed, and nearly one million are unemployed but actively searching for work. An analysis of educational levels reveals that 71.2% of the unemployed have completed high school, while 28.9% have attended college, regardless of graduation status.
In conclusion, Argentina’s unemployment rate has risen, notably affecting women and the Greater Buenos Aires area. Despite a decrease in inflation, the overall economic outlook remains grim due to persistent challenges in the labor market and declining economic activity. The government’s focus on securing international financial support highlights the urgency of addressing these economic issues. The tourism sector also faces difficulties due to high local prices attributed to currency fluctuations, impacting foreign visitor numbers.
Original Source: en.mercopress.com
