Which provinces have recorded the largest increase in unemployment due to the impact of the pandemic

The Freedom foundation, by Provincial Observatory of Health, Economy and Freedoms (SEL), report on the impact of the coronavirus pandemic on economic activity and the labor market in Argentina since the start of social, preventive and compulsory isolation (ASPO) decreed by the government on March 20.

According to the entity, “a serious, multidimensional and dynamic problem such as the Covid-19 pandemic has been compressed to just two variables: infections and deaths.”

In this direction, Alejandro Bongiovanni, one of the Foundation’s directors, noted: “A total cancellation of all discussion, analysis and observation of economic, educational, legal and constitutional variables, among others, was generated. The only important thing for a whole year was to avoid as many coronavirus deaths as possible, at all costs ”.

Regarding the economy, the report underlines that all provinces, with the exception of Río Negro, have seen the population entering the labor market decline. Within this framework, Buenos Aires was the one that recorded the largest decrease (-1 957 290), followed by the city of Buenos Aires (-313 670) and Santa Fe (-182,161).

All provinces, with the exception of Río Negro, have seen the population entering the labor market decrease

The largest percentage change in the unemployment rate was observed in the province of Misiones (241.5%), from 2.4% to 8.2%; Next come the provinces of Neuquén (106.9%) and Corrientes (98.8%).

However, the performance between jurisdictions was not homogeneous: in San Luis (-5.8%), Río Negro (-11.1%), Jujuy (-14.1%), Santa Cruz (-17.5%), Tucumán (-20.3%), La Pampa (-22.7%), Chaco (- 37.4%), Chubut (-59.6%) and Santiago del Estero (-73.8%), unemployment has fallen.

“Although the National Institute of Statistics and Censuses (Indec) reported that the unemployment rate fell from 10.4% to 13.1% (the highest figure observed since 2004), At least this is controversial data, as it understates the picture of the job destruction that occurred during ASPO’s most difficult phase. Which means that the decline in the economically active population (PAE) has contributed to a significantly lower growth in unemployment.», The Fundación Libertad analyzed in the report.

Likewise, he indicated that the increase in the unemployment rate published by INDEC “was strongly attenuated by the particular context of the pandemic which highlighted a decline in the economically active population (PAE)”.

He stressed that if the activity rate had remained at pre-quarantine levels, “unemployment would have reached a value close to 30% for the whole country”.

In another order, he indicated that the massive closure of the premises was one of the serious consequences left by the quarantine in SMEs. And he added that 15.6% of business premises in the country have closed, with no sign of moving to cheaper areas, given that the recorded move rate barely reached 0.3%.

“The crisis was so deep that companies could not even compensate by moving to cheaper areas, as is often the case in times of recession.», He analyzed.

At the same time, he pointed out that the provinces which posted the most pronounced declines in the participation rate were Buenos Aires (-23.9%), Tucumán (-22.3%) and La Pampa (-20.0%) , while the only jurisdiction that did not show a negative variation was Río Negro (1%).

Regarding changes in the employment rate, thehe province of Buenos Aires again posted the largest drop (-25.2%), from 40.8% to 30.5%. They were followed by Tierra del Fuego and Salta, with variations of -24.0% and -21.1% respectively. As for the activity rate, only the province of Río Negro showed a positive variation (1.4%).

The provinces that posted the most pronounced declines in the participation rate were Buenos Aires (-23.9%), Tucumán (-22.3%) and La Pampa (-20.0%), while the only jurisdiction which did not show a negative variation was Río Negro (1%)

The Fundación Libertad noted that according to Global Risk Report 2021 Posted on January 19, 2021 by the World Economic Forum (WEF), the Covid-19 pandemic has plunged the world economy into its deepest peacetime crisis.

According to estimates, global product is expected to contract by 4.4% in 2020. By comparison, the 2008-2009 financial crisis caused the global economy to shrink by 0.1%.

As a result of the above, this body has warned of the possibility that the global recession pushes 150 million people into extreme poverty, bringing the total to 9.4% of the world’s population, an indicator that in a pre-pandemic world, was projected at 8% by the end of 2020.

He also indicated that the economic impact of this health crisis varies by region. According to WEF data, the eurozone and Latin America are expected to contract more than the rest in 2020, as only 28 economies grew that year, with China being the only G20 country among them.

“The COVID-19 pandemic has devastated Latin America and the Caribbean, taking a high human cost and inflicting severe economic damage on an already weakened region in that region. Although the majority of countries have implemented early and very strict virus containment measures, the region has one of the highest per capita death rates in the world at the start of 2021., concludes the report.

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