Argentina’s official statistics agency reported that unemployment reached 7.9% in early 2025, the highest in almost four years. This figure means about 1.7 million people across the country are looking for work.
While this number is significant, it comes during a period of major economic change under President Javier Milei. Milei took office in late 2023 after Argentina faced years of high inflation and government overspending.
Inflation had reached 211% in 2023, making everyday life difficult for most families. Milei’s government quickly introduced a large package of reforms, known as the Ley Bases, and a series of emergency decrees.
These measures aimed to cut government spending, simplify regulations, and encourage private investment. One of the government’s first successes was a sharp drop in inflation.
Monthly inflation fell from 25% in December 2023 to just 2.8% by April 2025, the lowest in four years. The government also achieved a primary fiscal surplus for the first time in more than a decade by reducing public spending by about 30%.
This included cutting around 40,000 to 50,000 public sector jobs and removing many subsidies. Milei’s reforms also focused on making it easier to do business in Argentina.
Economic Reforms Bring Growth and Stability
The government relaxed rental laws, removed price controls, and opened the market for more competition in areas like aviation and internet services. These changes led to more rental apartments in Buenos Aires and lower prices for internet and medicines.
The reforms have started to show results. Argentina’s economy is expected to grow by 5% or more in 2025. The country recorded a trade surplus for over a year, and foreign exchange reserves increased to nearly $39 billion by June 2025.
Investor confidence has returned, with bond prices rising and the risk index dropping to its lowest in five years. Still, the transition has not been easy for everyone. Unemployment has risen, especially in the Greater Buenos Aires region, where the rate reached 9.1%.
Many of these job losses came from the public sector as the government worked to reduce its size and improve efficiency. At the same time, private sector wages have started to recover, rising faster than inflation in 2024.
Argentina’s experience shows that deep economic reforms can bring stability and growth, even if they come with short-term challenges.
The government’s focus on fiscal discipline, deregulation, and investment incentives has put the country on a more solid path. As reforms continue, Argentina aims to create more jobs and improve living standards for everyone.
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