The Argentine government reported that this nation lowered its level of informal employment in 2020, a year of economic crisis and the Covid-19 pandemic.
In general, the Argentine economy has an informal segment composed mainly of employees who are not registered in Argentina‘s social security system but who conduct legitimate business.
By its nature, the informal segment of the Argentine economy cannot be easily traced through statistical information or other reliable data activities.
Employment in the informal sector went from 33.6% in 2016, to 34.2% in 2017 and to 35.3% in 2018.
Then this indicator grew to 35.9% and then dropped to 32.7% in 2020.
The activities include small businesses, generally those that are owned by individuals and families, that produce and exchange legal goods and services, but that may not have the appropriate business permits, declare their tax liability, comply with labor regulations or have legal guarantees to suppliers and end users.
As of the fourth quarter of 2020, INDEC estimates that the informal economy employed 32.7% of the total workforce.
During the six-month period ended June 30, 2021, Argentina’s real GDP increased 10.3% compared to the same period in 2020.
Above all, this increase was due to a 9.4% rise in private consumption and a 55.8% growth in investment, which were partially offset by a deficit in the trade balance of goods and services due to a 19.3% advance in imports and a decrease of 1.8% in exports.
The primary production sector decreased 0.1% during the six-month period ended June 30, 2021 compared to the same period in 2020.
At the same time, the secondary production sector increased by 22.8%, mainly driven by increases in the manufacturing and construction sectors.
Finally, the service sector increased 8.0% during the six-month period ended June 30, 2021 compared to the same period in 2020 and represented 49.9% of real GDP.
The increase was driven by the retail, hotel and restaurant sectors, as well as financial and business services.