Employment has not increased in countries that have implemented labor reform



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L & # 39; argument? The usual: it will facilitate the creation of quality jobs. However the experience of those countries that have made progress in labor flexibility with these characteristics reverses this argument. In fact, it is never the labor sectors that require greater flexibility in the labor market but, on the contrary, the business sector.

A report from the Public Policy Observatory of the National University of Avellaneda (Undav) disarmed, one by one, the reasons why, according to the officialism and the spirit of business, would justify progress in this direction.

The strategy of macrism is simple: to establish the idea that the current crisis to which its policy has led can not be explained by macroeconomic mismanagement, but by a labor law that does not meet the needs of the 21st century.

For the Undav "flexibilisation of working conditions will ultimately lead to greater precarious relations. However, that such a policy contributes to growth and that the rebound in employment is based on empirical evidence. In fact, conditions have actually deteriorated since December 2015 ".

In April of this year, real wages in the formal private sector declined by 17.8% from October 2015 and by 13.5% compared to December 2017, which is a real collapse in the income of families in the labor market. and protected by the law of employment contracts. However, far from recovering, employment in the sector fell 2.5%.

In the last 16 months, 158,000 jobs have been lost in the formal private sector despite the sharp drop in the cost of labor.

International experience also serves to overcome the arguments of macrismo. Many other countries have approved labor reforms in recent years (Brazil in 2017, Spain and Portugal in 2012) and the expected results are far from being achieved.

Empirical evidence shows that The rise and fall in unemployment rates are correlated with economic cycles and not with more or less flexibility in the labor market.

On the other hand, there is no substantive difference between the amounts that an employer must pay to terminate a working relationship with the worker without notice in Argentina compared to other countries in the region.

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