Argentina Mulls Incentives for Job Growth, Labour Minister Says

• Argentina is considering fiscal incentives to encourage companies to hire workers after unemployment spiked to 13% in the second quarter, the highest in at least 16 years amid the pandemic.
• Labour Minister Claudio Moroni said he’s been working with the Production Ministry to lower some employer contributions. The incentives will probably be aimed at hard-hit industries in Argentina’s least-favored provinces, he said. The administration of President Alberto Fernandez also recently rolled out an ambitious initiative to provide some 3 million workers with training customized to employers’ needs.
• The fast deterioration of the labor market comes in spite of the government’s initiatives to offset the economic impact of the pandemic. Argentina has banned firing workers and also forced companies to pay double the ordinary amount of severance if they discontinue operations in the country. On top of that, the government is paying half of private-sector workers’ salaries to support firms that have lost revenue during the crisis.

(Source: Bloomberg)