Argentina’s unemployment rate increased to 6.4% in Q4 2024, with regional variations and disparities between genders. Hotel occupancy has declined, influenced by economic factors and currency valuation. The government aims to secure an IMF loan to strengthen reserves amid economic stagnation, with a significant portion of the unemployed having completed high school education.
In the last quarter of 2024, Argentina’s unemployment rate increased to 6.4%, rising from 5.7% in Q4 2023, albeit decreasing from 6.9% in Q3 2024, according to a report by the National Institute of Statistics and Census (Indec). The Greater Buenos Aires area experienced a higher joblessness rate of 7.1%, while Patagonia reported a lower rate of 4%. Notably, unemployment affected more women at 6.9% compared to men at 6.1%.
Additionally, 72.5% of the unemployed individuals have been out of work for less than a year, with 27.6% jobless for longer. The rate of labor market pressure, which combines unemployed, underemployed, and job seekers, increased to 29.4%, reflecting a two-point rise year-on-year. Nationwide, around 1.47 million people are unemployed, an increase of 180,000 from the previous year.
In February 2025, hotel occupancy in Argentina fell by 0.2% year-on-year, receiving 1.97 million travelers. This decline is attributed to foreign tourists being deterred by the increasing strength of the local peso against the US dollar, rendering local services relatively expensive. However, domestic travel saw a growth of 4.6% in resident travelers, juxtaposed with a notable decline of 14.7% in non-resident bookings. Total overnight stays reached 5.6 million, showing a year-on-year decrease of 1.2%.
Buenos Aires province accounted for the majority of overnight stays at 27.8%, followed by Patagonia at 22.6%. The average duration of hotel stays was 2.8 nights, while parahotel accommodations averaged 3.4 nights. Top tourist destinations included Mar del Plata, San Carlos de Bariloche, and Villa Carlos Paz.
The current government, led by President Javier Milei, has succeeded in reducing inflation from 211% in 2023 to 117% in 2024. Nonetheless, the economy faces stagnation due to a lagging dollar, compounded by diminishing Central Bank reserves as they intervene to stabilize the dollar’s value. To address this, the government aims to secure an IMF loan before mid-April to boost reserves amid uncertainties surrounding the currency peg and escalating dollar demand.
The city population in urban Argentina stands at 29.8 million, with 14.5 million constituting the economically active population. Within this group, 13.6 million are employed, while nearly one million remain unemployed but actively seeking work. In terms of education, 71.2% of the unemployed have completed high school, whereas only 28.9% have attended college, regardless of graduation status.
In summary, unemployment in Argentina has risen to 6.4%, reflecting regional disparities and affecting women more significantly than men. The local hotel industry faces challenges amid changing economic conditions, influenced by currency valuation affecting tourism. While efforts to stabilize inflation have been evident, economic activity remains hindered, necessitating external financial assistance. The educational background of the unemployed reveals a notable trend that may impact future workforce strategies.
Original Source: en.mercopress.com
