Wages and jobs complicate Argentine election outlook

Significance

The strike was prompted by unions' rejection of the 27% ceiling the government attempted to impose on wage rises. With this ceiling, real wages will suffer further given existing high rates of inflation. In a context of falling employment rates and decreasing purchasing power, labour conflicts have mounted, boosting strikes and protests.

Impacts

• Falling employment and real wages will continue to fuel labour conflict.
• Wage rises above 27% appear inevitable in a pre-election context.
• Doubts over INDEC's unemployment figures will revive lack of confidence in other official economic and social statistics.