The recession in the domestic market and reduced consumption have put small and medium-sized companies (SMEs) in a crisis that is far from over. In 2024, it is estimated that up to 300,000 jobs may be cut, according to the Argentine Industrial SMEs (IPA). The decline in production and the opening of imports are creating a complex scenario that threatens to continue.
In March, private employment contracted by 0.5%, resulting in a loss of 58,000 jobs in the first three months of the year. With SMEs generating 66% of national formal employment, the outlook for recovery is bleak. The collapse in sales in the domestic market is expected to have a direct impact on employment, leading to a serious problem with unemployment in 2024.
The decline in jobs was greater among large companies than among SMEs on a month-to-month basis in March versus February. However, the year-on-year decline was larger for SMEs compared to large companies, highlighting the challenges facing smaller industrial businesses. The current economic situation has led to reduced activity in all industrial sectors, with some experiencing significant declines year-on-year.
To sustain jobs and minimize the impact of this crisis, there is a need for an industrial plan. Rising costs and trade opening represent a time bomb that may lead to further job cuts in the future if no solutions are found to support SMEs during this challenging period.
