Argentina President Javier Milei has unveiled his plans to slash 70,000 government jobs in the coming months, adopting a bold “chainsaw-style” approach aimed at significantly downsizing the state, reported Bloomberg.
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Speaking at an event on Tuesday, Milei also announced the suspension of public works projects, reductions in funding for provincial governments and the termination of over 200,000 social welfare programmes, which he labelled as corrupt. These measures constitute part of the libertarian leader’s strategy to achieve fiscal equilibrium by any means necessary this year.
While the number of job cuts represents a fraction of the vast 3.5 million public sector workforce of Argentina, Milei is expected to face resistance from influential labour unions.
The move also carries the risk of denting his currently high approval ratings. In response to plans of Javier Milei, one union initiated a strike on March 26, while a government report highlighted a significant decline in wages experienced by private sector workers since Milei took office in December. The leader of the state workers union, ATE, swiftly announced a national strike on the social media platform X (formerly known as Twitter) in reaction to Milei’s proposals, although specific details were not provided.
Javier Milei referenced polls indicating growing optimism among Argentines regarding the economy’s future. Despite implementing austerity measures, a recent indicator revealed increased public confidence in the government. “People have hope, they’re seeing the light at the end of the tunnel,” Milei remarked.
This recent decision to cut approximately 70,000 Argentina government jobs follows Milei’s earlier statement in December 2023 that his government would not renew contracts for over 5,000 employees hired that year prior to his inauguration. Contracts for other government employees hired before 2023 will be subject to review, authorities had previously announced.
Addressing an audience on Tuesday, President Javier Milei highlighted that around 70,000 contracts of state employees are nearing expiration amidst a broader wave of layoffs, as reported by Bloomberg. Speaking at a conference organized by the International Economic Forum of the Americas (IEFA) in Buenos Aires, he stated, “Not only that — [employment] contracts were terminated.” He further elaborated, “We eliminated discretionary transfers to the provinces, we also dismissed 50,000 public employees.” Referring to the erosion of wages and pensions due to 276 percent annual inflation, Milei emphasized, “There’s a lot more chainsaw.”
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