Fall in businesses and jobs in Argentina under Milei

The closure of thousands of companies and the loss of hundreds of thousands of formal jobs put the Argentine economy in the international spotlight. Search volume reflects concern over the impacts of this process on regional markets, including Brazil.

Business closures from November 2023 to June 2026

According to Fundar's Monthly Business Monitor, 31,342 companies ceased operations between November 2023, the month before Javier Milei took office, and June 2026. This drop corresponds to 6.1% of the total formal companies with employees, the largest reduction recorded in the first 31 months of a presidential administration in the analyzed series.

Most affected sectors

Fourteen of the eighteen evaluated sectors showed a decrease in the number of companies. The largest declines were observed in transportation and storage (-17.51%), construction (-9.5%), and manufacturing industry (-13.81%). The electronic and medical equipment industry recorded a cumulative drop of 19.1% in 12 months, according to Indec data.

Unemployment and replacement by informal work

The closure of companies resulted in the loss of 245,600 formal jobs, a 3.9% drop of the total, according to a Cepa survey. The increase in self-employed workers – 169,000 in the same period, an 8.3% growth – indicates that part of the disappeared positions was replaced by unprotected activities.

Regional impact and exceptions

The contraction hit 23 of the 24 Argentine provinces. The only exception was Neuquén, where natural gas exploration in Vaca Muerta boosted a 1.4% growth in the number of companies. La Rioja, Catamarca, and Tierra del Fuego registered the largest provincial drops, above 13%.

Macroeconomic context

While the number of companies and formal jobs decreases, annual inflation dropped from 289% in April 2024 to 33.5% in August 2024. Professor Paulo Gala, from FGV-SP, attributes the inflationary stability to public spending cuts, billion-dollar loans to the IMF, and the appreciation of the peso, but warns that the overvalued currency "destroys the industrial sector." External debt, estimated at US$ 350 billion, also highlights the fragility of the economic situation of Brazil's main trading partner in Latin America.

Milei government reaction

In a speech at the end of August, Milei highlighted positive indicators of export, private consumption, inflation, and GDP, which grew 4.4% in 2025 after a 1.3% contraction in 2024. The president contested the idea that unemployment would be "skyrocketing," stating that "if all companies were closing and none opening, unemployment would have to be skyrocketing."

With information from Folha PE, Jornal GGN.