Argentine workers’ living standard down 4.1% in 12 months, despite 1st semester improvement

RIO DE JANEIRO, BRAZIL – Workers’ purchasing power fell by 4.1% in the past 12 months, but improved by 2.3% in the first semester, according to Argentine NGO Fundación Libertad y Progreso (LyP) survey based on official data from the National Institute of Statistics and Censuses (INDEC).

The Workers’ Standard of Living Index (INVT) is measured by comparing the evolution of wages and the Total Basic Food Basket (CBT), used to determine the poverty line. From the comparison of the two indicators, a worrisome deterioration of the living standard over longer terms emerges, given that since August 2013 the drop in the INVT has reached 44%.

Consequently, LyP noted that in recent years “workers have moved closer to the poverty line” due to the depreciation of the Argentine peso and the low levels of investment. When compared to May, the INVT for June dropped by 1.4%, while when compared to the Basic Food Basket (CBA), which marks the poverty line, the year-on-year drop reaches 7.6% and growth in the first half of the year is only 0.1%.

“After the heavy blow to wages in 2020 due to the pandemic, many activities that were restricted by the distancing policies have gradually become more flexible,” LyP pointed out when presenting the index.

However, the entity pointed out that this recovery “is much lower than in May due to the fact that two of the sectors generating the most employment in Argentina, construction and manufacturing, were still affected by the restrictive measures.”

“In addition, it should be noted that the services sector has still not recovered from last year’s crisis,” it said.