Argentina loses 31,000 companies and 245,000 formal jobs during Milei government

Argentina has lost more than 31,000 companies and 245,000 formal jobs since the start of President Javier Milei’s government in December 2023. The figures are part of surveys released this September and show the reduction in business activity and employment recorded in the neighboring country.

According to the Monthly Business Monitor, prepared by the Argentine research center Fundar, the country recorded a net reduction of 31,342 companies between November 2023 and June 2026. The number represents a 6.1% drop in the total number of companies registered in Argentina.

The survey indicates that, in June of this year alone, there was a reduction of 709 companies compared to the previous month. The decrease in the number of establishments reached 14 of the 18 economic sectors analyzed since the beginning of the current government.

The closure of companies affects almost all of Argentina

The reduction in business activity was recorded in virtually all of Argentina. According to Fundar, 23 of the 24 provinces have experienced a decrease in the number of companies since the beginning of the Milei government.

The only exception was Neuquén, where natural gas exploration in the Vaca Muerta region has contributed to local economic development.

Among the most affected segments are transport and storage, real estate activities and construction.

The transportation and storage sector has seen a 17.51% reduction in the number of companies since November 2023. In the real estate sector, the fall was 13.99%, while civil construction showed a retraction of 9.5%.

The survey also identified the closure of the activities of traditional companies, such as the metallurgical company Din S.A., which closed its factory after 56 years of operation, and the textile industry Clan Issime, which closed the activities after more than five decades.

Argentina loses more than 245,000 formal jobs

The decrease in the number of companies occurs in parallel with the reduction of jobs with a registered portfolio in the Argentine private sector.

According to a survey by the Argentine Center for Political Economy (Cepa), 245,664 formal private jobs were lost between November 2023 and June 2026. The result represents a decrease of 3.9% in the total number of workers in this category.

In the same period, the number of workers enrolled in the self-employment regime known as monotribute increased by approximately 169 thousand, an increase of 8.3%.

According to Cepa, part of the formal vacancies lost is being replaced by independent activities, which may offer different conditions of work and social security protection.

The unemployment rate also showed growth. Data from the National Institute of Statistics and Census of Argentina (Indec) show that unemployment reached 7.9% in the second quarter of 2026, an increase of 0.3 percentage points compared to the same period of the previous year.

Argentine Industry Records Retracement

The industry also faces difficulties in the Argentine economic scenario.

Official data from Indec, released by Agência Brasil, shows that industrial production has accumulated a 2.6% decline in the 12 months ended in July 2026.

Among the segments surveyed, the manufacture of electronic and medical equipment presented one of the largest falls, with a reduction of 19.1% in the period.

The industrial downturn comes in a context of changes in Argentine economic policy, marked by measures of fiscal adjustment, reduction of public spending and trade opening advocated by the Milei government.

Inflation falls, but labor market faces difficulties

Despite the negative results in the labor market and industry, Argentina presented a significant reduction in inflation during the Milei government.

The annual inflation rate, which reached 289% in April 2024, fell to 33.5% in August 2026, considering the cumulative variation of the previous 12 months.

Economist Paulo Gala, professor at the Getulio Vargas Foundation (FGV-SP), told Agência Brasil that the valuation of the Argentine currency contributes to price control, but can also harm the competitiveness of the national industry.

According to the expert, the reduction in inflation occurs in a context of cuts in public spending, loans from the International Monetary Fund (IMF) and appreciation of the Argentine peso.

The Milei government highlights GDP growth and inflation reduction

President Javier Milei disputes negative assessments of the performance of the Argentine economy and points to other indicators to defend the results of its economic policy.

In a speech at the end of August, the president highlighted the growth of exports, the increase of private consumption and the reduction of inflation.

Milei also pointed out that Argentina’s Gross Domestic Product (GDP) grew by 4.4% in 2025, after shrinking by 1.3% in 2024.

The president argued that the closure of companies needs to be analyzed in conjunction with the opening of new businesses and the evolution of employment indicators.

The surveys released in September show, therefore, a scenario of distinct results in the Argentine economy: while inflation showed a decrease and GDP grew again in 2025, the number of companies and formal private jobs remains below the levels recorded before the start of the current government.