In Argentina, high social charges on employers and easy access to state welfare schemes dangerously encourage informality.
Less than half of the public and private labour market in our country is registered. This is mainly due to the fact that a "black" contract is more profitable for the worker and the employer.
Why? For each registered employee earning, for example, $45,000, his or her employer contributes approximately $67,000 per month. The remaining $22,000 are social charges from which neither the employer nor the employee benefits directly.
On the other hand, a registered employee, or "en blanco", cannot access state welfare plans. But often, the salary they receive formally is not enough to support themselves and their families. The only option left is to work informally and, in addition, to receive an allowance. In this context, it is almost impossible to progress in the labour market and economically.
Excessive assistance, without a concrete plan with goals and objectives to be met, and without training the beneficiaries for the labour market, only increases poverty.
The best help the state can give is to enable and, above all, facilitate productive investment in order to generate quality, stable, registered and well-paid jobs.
Employment dignifies and allows us to progress, grow and develop.
Let us demand that the state enables and facilitates job creation, not access to more welfare.
Let's demand to be heard!
We invite you to watch our Webinar with Jorge Colina, on Employment in Argentina. Here
Join us at #PlanCountryArgentina and let's create, all together, a better future.
Source: IDESA.
#Employment
#YoIWantAPlanforMyCountry
#ArgentinaEarthLight
In one of your proposals you say that you have to listen to us; who has to listen to us?
Party politics, our representatives, those who stand for election!
Hello.
Some of what they say is right. Others contain errors. For example, the sector with the highest informal employment in Argentina is agriculture, and this is not due to a problem of profitability of the sector, which does not allow it to pay employer contributions.
On the other hand, it is wrong that these contributions are not seen by either the worker or the employer.
In the same vein, countries like Germany average 50% of income tax. There are many complaints about "social plans", but this does not prevent the country from developing or investing.
Historically, no labour flexibilisation in Argentina has ever led to a decrease in unemployment, but exactly the opposite.
I understand the good intentions, but they must be based on serious scientific studies by renowned scientific centres on the subject, such as CEIL-CONICET. Otherwise, what they are doing is lobbying in favour of reducing employer contributions and making employment more precarious.
Hi Guido! All the information in this post is based on studies and analyses carried out by El Instituto para el Desarrollo Social Argentino (IDESA), an independent, non-profit research centre specialising in the labour market, the education and job training system, social security, the health system and social assistance. You can see all their reports on their website. We also invite you to watch our Webinar with Jorge Colina, President of IDESA, on Employment in Argentina, at this link: https://www.youtube.com/watch?v=9OjZfB8j9Uk. If you have any questions, please do not hesitate to contact us!