The Ministry of Labor reported that the main cause of the loss of employment did not respond to layoffs but rather to the lack of new incorporations in the face of dismissals due to resignations, retirements or termination of contracts.
This it is reflected when seeing that only 3% of the companies that could employ people in April increased their staffing, when in the same month of 2019 it had been 7% of the total number of firms.
At the same time, 10% of companies reduced their staffing in April 2020, only 1 percentage point more than in the same month of the previous year.
In the month in question, economic activity collapsed by 26.4%, a figure that exceeded the decline generated after the convertibility crisis. In this context, the reduction of registered jobs in the private sector was 2.2%, below the 2.7% verified in January 2002.
"The evolution of salaried employment tends to show more stable values, since there are legal and institutional frameworks and economic reasons within firms that tend to mitigate a sudden and profound reduction in the level of activity ", they explained from the ministry led by Claudio Moroni.
It is worth remembering that after the arrival of the coronavirus, the CGT and the UIA granted a permit to the affected companies to suspend workers for 60 days and reduce their wages to 25%.
According to SIPA data, 12% of private sector firms used the resource of suspensions in April, registering a total of 715,000 workers suspended.
For its part, the Survey of Labor Indicators (EIL) conducted in May showed a drop of 0.4% in the level of employment compared to April. This shows some improvement in a month in which several activities reopened, particularly in the interior of the country, since in the previous month the contraction had been 0.6%.
The survey showed that, while in In April, 19% of all companies had claimed to be without operations; in May, this value fell to 13%. On the contrary, while in April only 25% said they were operating as usual, in May that value was 32% in the total of urban agglomerates.
Facing the paralysis of the economy that produced the pandemic, from Work they highlighted the measures that the Government took to sustain employment, mainly through the Work and Production Assistance Program (ATP) which in April covered a percentage of the salary of 2.3 million workers distributed in 245,000 companies.
He also highlighted the importance of assistance to monotributisas and self-employed workers, to which the State arrived through 340,000 credits at zero rate.