Argentina – Growth of Temporary Work

20, May

According to the Argentinian National Institute of Statistics (INDEC), after a strong decline, which lasted from ...

According to the Argentinian National Institute of Statistics (INDEC), after a strong decline, which lasted from midyear 2015 till August 2016, temporary work had an increase of almost 10,000 people during the following four months (September to December). They went from 45,762 jobs in August to 55,431 in December 2016.

Data is relevant as during the periods of economic slowdown, user companies tend to stop using temporary services, but when the economy starts recovering, hiring of temporary workers grows, prior to the decision of formal direct recruitment.

Back in 2015, there was an average of 67,224 temporary workers, which drop down to 53,843 a year later, with a constant increase starting on September 2016.

Large companies, those that employ over 1,000 workers, are the larger users, hiring 84% of the 55,431 temporary workers. Over half of them are blue collar workers. In addition, by the end of the year, there is also an increase of temporary salespeople.

Furthermore, around 65.4% of them are young people under 30 years old, 29.9% are between 31 and 45 years old, and 4.8% are older than 45 years old. As regards gender, 68.6% are men and 31.4% are women. Finally, most of them -59.7%- have a secondary education degree, and 16.6% have completed or are completing college or technical studies.

The temporary worker has a formal permanent discontinuous employment relation with the Staffing Company (Empresas de Servicios Eventuales – ESE), “but their wage and labor conditions are regulated by the collective bargaining agreement of the user company”, said José María Mariani, director of the Argentinian Federation of Staffing Companies (FAETT).

“The contribution of staffing firms to the social and economic progress in Argentina is vital. They are the main entrance door to the formal labor market for young people”, said Martín Padulla, Founder and Managing Director of staffingamericalatina.

“This is particularly important in a context where 6 out of 10 youngsters have an informal job” added Padulla.

“Argentina must ratify ILO Convention 181 on private employment agencies to enhance the recovery. The cooperation between public and private employment services shall improve employability, reduce informality and contribute to building a more modern, dynamic and inclusive labor market”, concluded Padulla.

Source: Clarin