In the first six months of the government’s management, Javier MileiArgentina has seen the closure of approximately 10,000 small and medium-sized enterprises (SMEs), which equates to about 50 companies per day.
This situation has generated a significant economic crisis, affecting not only employers, but also thousands of workers who have lost their jobs. The lack of support policies and the implementation of adjustment measures by the government of Javier Milei have been identified as the main causes of this wave of bankruptcies.
SMEs are a fundamental pillar of the Argentine economy, representing a large part of employment and national production. However, the adjustment policies implemented by the Argentine government have Milei have had a devastating impact on this sector.
The reduction of subsidies, the increase in tariffs and the lack of access to financing have created an unsustainable environment for many of these companies. The Association of National Businessmen and Businesswomen for Argentine Development (ENAC) has been one of the most critical voices regarding this situation.
More than a hundred SME entrepreneurs gathered in front of the Casa Rosada to demand an emergency law that addresses their needsHowever, officials from the Ministry of Finance have been reluctant to accept them, which has led business owners to make their demands visible in public.
The SME crisis has had a direct impact on employment. According to the latest official statistics, the number of new unemployed rose to 266,000 in the first quarter of 2024, with more than half concentrated in the province of Buenos Aires.
Endless
This figure is likely to continue to rise as more SMEs close their doors. The Argentine Integrated Pension System (Sipa) has reported seven consecutive months of decline in registered employment between December and June of this year.
The job losses are mainly due to a lack of new hires, as firing employees has become more expensive. In addition, worker layoffs are at record levels, further exacerbating the situation.
