Overview

• July payroll data show a further loss of 1,164 public-sector positions, bringing total reductions since December 2023 to 53,345, or 10.6% of the workforce.
• The cuts include 31,114 jobs in the National Public Administration and 16,886 in state-owned companies, equal to drops of 15.1% and 18.5% respectively.
• The ministry estimates US$1.053 billion in annual savings on salaries, rising to US$2.106 billion when factoring in workplace infrastructure costs.
• Reductions hit nonstandard contracts hardest, with Ley Marco staff down 22.1% and LOYS contractors down 52.4%, versus a 9.4% decline for permanent and transitory employees.
• Minister Federico Sturzenegger promoted the results on X and the government signaled further staff cuts, while official data show a 14.3% fall in state wage purchasing power and unions report deeper losses for some grades.