Warnings of 300,000 factory layoffs

Industrial SMEs are facing a crisis that has not reached its lowest point yet. The recession has impacted the domestic market and reduced consumption, leading to more suspensions and dismissals for small and medium-sized companies. It is estimated that 300,000 jobs may be cut in 2024. Argentine Industrial SMEs (IPA) warned about this situation at a press meeting, presenting the sixth report of their Observatory.

In addition to the drop in production, industrial SMEs are also dealing with the opening of imports, which IPA believes is a permanent shift. This complex scenario is expected to continue, with a sustained collapse in sales and a direct impact on employment. Private employment contracted by 0.5% in March compared to February, resulting in a loss of 58,000 jobs in the first three months of the year.

The decline in jobs was more significant in large companies than in SMEs in March. However, on a year-on-year basis, SMEs experienced a greater decline. The report highlights that companies are facing the need to reduce labor costs due to low sales and high inventories. This has led to measures such as advancing vacations, cutting shifts, and eventually laying off personnel.

The manufacturing industry has been experiencing continuous decline in economic activity, with all industrial sectors recording negative numbers in March. This has led to a reduction in production levels and an increase in layoffs. The crisis is expected to deepen as companies struggle with imported finished products replacing national production. Without an industrial plan in place, the impact on jobs and the economy will be significant. The challenge is to minimize the damage and find ways to sustain employment in the face of these challenges.