Argentine government incentive program creates 81,808 formal jobs in four months

The Argentine government reported that its Labor Formalization Incentive Regime (RIFL) added 81,808 registered workers in the private sector between May and August.

This initiative aims to encourage companies to hire workers formally by reducing employer contribution costs for the first 48 months of a contract. The program targets individuals currently in informal work, the unemployed, and former public sector employees.

The number of companies using the benefit grew significantly during this period, rising from 8,024 in May to 25,928 in August. This figure represents 5% of all private employers in the country. On average, each participating firm hired 3.2 workers under this specific modality. The monthly data shows a steady increase in usage, with the largest single month of additions occurring in August. Retail, business services, and industry accounted for 62% of the new positions.

The hospitality sector saw the highest participation rate, with 9.2% of hotels and restaurants using the incentive. While the program created new formal roles, economist Luis Campos estimated that the country lost 37,858 private formal jobs in net terms during the same period. The geographic distribution of these new jobs is concentrated in major economic hubs. The province of Buenos Aires and the city of Buenos Aires together accounted for more than half of the total new hires.

The government stated that while these early figures show the reach of the regime, more rigorous evaluations are needed to determine its long-term impact on total employment levels.