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On Aconcagua Radio, Silvia Jardel, from CEM, spoke about unemployment in Mendoza.

On Aconcagua Radio, Silvia Jardel, from CEM, spoke about unemployment in Mendoza.

The manager of the Mendoza Business Council analyzed the situation of the Mendoza labor market. Unemployment, low wages, and limited economic growth.

A report by the Mendoza Business Council (CEM) reveals a provincial unemployment rate below the national average, although it warns about the persistence of low wages that do not guarantee rising above the poverty line. The debate focuses on the quality of employment, the advancement of the single tax system, and the need for sustained economic growth.

Silvia Jardel, manager of the CEM, spoke with Aconcagua Radio to analyze the situation of the Mendoza labor market. While she confirmed a downward trend in unemployment over the last four years, currently at 4.8%, below the national level of 6.4%, the concern lies in the quality of jobs and purchasing power.

The CEM report indicates that a significant percentage of salaried workers still live below the poverty line, demonstrating that having a job is not synonymous with economic well-being. An alarming fact is the 27% drop in real wages from 2016 to the present, which underscores the loss of workers' purchasing power over almost a decade.

However, Jardel highlighted a 17% recovery in real wages in recent months, driven by the slowdown in inflation. This trend is expected to continue as inflation continues to decline. However, he emphasized that sustained increases in real wages are intrinsically linked to increased productivity, which requires greater worker training and business investment.

Asked about the growth of the monotributo (small tax), a form of self-employment that has proliferated in the country, Jardel did not elaborate on the analysis. She also could not verify the national government's claim that 10 million people have been lifted out of poverty, referring to official data from INDEC (National Institute of Statistics and Census) and the Catholic University of Argentina (UCA), which do reflect an increase in average real wages and, consequently, a reduction in poverty levels.

For the future, the CEM emphasizes the need to create favorable conditions for business investment, which will boost economic activity, labor demand, and ultimately, better wages. Economic recovery after the crisis and high inflation implies a readjustment of relative prices and greater comparison capabilities for consumers and businesses.

The Coviar issue

On another topic, Jardel addressed the controversy surrounding the Argentine Wine Corporation (COVIAR), advocating for voluntary contributions rather than mandatory ones. In a context of intense international competition, he considered reducing the tax burden crucial to improve the competitiveness of the wine sector and other Argentine industries in global markets. This competitiveness agenda includes reviewing logistics costs and labor burdens, pending issues for debate in the country.

Finally, when asked about the most in-demand job profiles in Mendoza , Jardel admitted to being unaware of that specific information, although she emphasized the value investors place on the availability of skilled and talented people, thanks to the presence of numerous universities and higher education institutions in the province.

Listen to the full article here, and you can listen to the radio live at www.aconcaguaradio.com

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