Overview
- President Javier Milei has made labor changes a priority with the stated goal of mass formalization of workers, but no law has been enacted.
- Argentina’s market remains highly dual, with about 19 million urban employed and only roughly 6 million registered private employees, leaving around half in informal or self‑employed arrangements.
- Analysts say the draft focuses on updating rules for larger, formal companies and offers little tailored relief for firms with fewer than 10 workers, which employ an estimated 80% of informal wage earners.
- Critics describe the proposal as the eighth rebranding of past flexibilizations that redistributed formal jobs without reducing informality, now labeled as a ‘modernization’.
- Commentary warns that even broad formalization would not by itself stabilize pensions, while proponents call for combined steps to lower hiring and firing costs, expand training against automation, and raise female participation.