Argentina lost approximately 31,300 registered companies between November 2023 and June 2026, according to an analysis published by the Argentine Center for Political Economy, known as CEPA. The study, released on September 15, used official data to assess changes in employment and business activity during the first years of President Javier Milei’s administration.
The same analysis found that employment in productive units declined by more than 434,000 positions over the period. The figures indicate that the reduction in business activity extended beyond individual companies, affecting the number of registered jobs connected to production across the country.
The findings add pressure to the government’s economic record. Milei’s administration has pursued fiscal austerity, deregulation and a reduction in state spending while seeking to stabilize an economy that had experienced extremely high inflation. Although annual inflation has fallen significantly from the levels recorded in 2024, the improvement in prices has not been matched by a broad recovery in industrial activity, business formation or formal employment.
Different measures point to a weaker labor market
The employment figures require careful distinction because they refer to different indicators. CEPA’s estimate covers employment in productive units and points to a loss of more than 434,000 positions between November 2023 and June 2026. A separate figure cited by Agência Brasil refers to approximately 245,600 private-sector formal jobs lost between November 2023 and June 2024.
Those numbers should not be treated as measurements of the same period or labor-market category. The CEPA estimate covers a longer period and a broader reference to productive units, while the figure reported by Agência Brasil concerns private registered employment through June 2024. Together, however, they describe a labor market under significant pressure during the early phase of the government’s economic program.
Official labor statistics are compiled by Argentina’s labor authorities through data on registered employment and business activity. The Ministry of Labor publishes information on the evolution of registered work and national labor and business indicators, providing the statistical basis used to track changes across sectors and regions.
Manufacturing and construction among the hardest-hit sectors
The contraction has been particularly visible in manufacturing and construction, sectors that are closely linked to domestic demand, investment and public and private projects. A decline in activity in these industries can affect not only direct employees but also suppliers, contractors and smaller businesses that depend on local production chains.
For companies, the period has combined weaker demand with a difficult operating environment. The closure of registered businesses suggests that the adjustment has affected firms of different sizes, while the decline in formal jobs points to consequences for workers who depend on regulated employment, social protections and stable wages.
The national figures also mask important regional differences. Economic activity in Argentina is concentrated unevenly across provinces, and the effect of austerity and lower demand has varied according to each area’s industrial base, public investment and access to expanding sectors.
Neuquén stands out as an exception
Neuquén has emerged as a relative exception to the broader downturn because of investment and employment connected to the Vaca Muerta oil and gas formation. The energy corridor has attracted activity linked to exploration, production, infrastructure and services, helping sustain job creation and business opportunities in the province.
Vaca Muerta’s performance illustrates how Argentina’s regional economy can move in different directions at the same time. While manufacturing and construction have faced contraction in much of the country, energy-related investment in Neuquén has provided a source of resilience. The contrast is significant for policymakers seeking to transform natural-resource potential into broader economic growth.
However, the strength of one energy-producing region does not offset the national decline in registered companies and formal employment. The CEPA analysis points to a broader adjustment that continues to affect productive activity outside the areas benefiting from energy investment.
Economic recovery remains uneven
The data presents a mixed picture of Argentina under Milei. Lower inflation represents a major change from the severe price instability seen in 2024, but the social and productive costs of the adjustment remain visible in employment and business statistics.
For workers, the loss of formal positions can increase dependence on informal employment or reduce household purchasing power. For businesses, fewer registered companies may mean less competition, weaker local supply networks and a slower recovery in provinces whose economies rely on manufacturing, construction and consumer demand.
Argentina’s experience is being watched across the Americas because it offers a test of whether aggressive fiscal restraint and deregulation can produce sustainable growth after an initial period of contraction. The latest figures suggest that any recovery remains uneven, with falling inflation coexisting with business closures, industrial weakness and a substantial reduction in formal employment.
Sources: Argentine Center for Political Economy (CEPA); Agência Brasil; Argentina’s Ministry of Labor; Registered Employment Situation and Evolution; OEDE national labor and business indicators.
