Not even the oil boom can stop private sector job loss

Private sector registered employment fell again to close the first half of 2026. According to labor ministry data, monthly registered employment in the private sector dropped 0.1% in June (about 6,261 fewer jobs compared to May).

The year-over-year comparison of formal private-sector employment shows a 1.9% decline compared to June 2025 (121,000 fewer jobs).

According to estimates by consulting firm Politikón based on official data, the seasonally adjusted employment series stood 3.9% below the November 2023 level.

This equates to a cumulative loss of some 246,312 jobs in the formal private sector during the Milei era — the “lowest employment level in the last fifty months.”

Among the provinces, only two currently exceed the levels of November 2023: Neuquén at 8.7% and Río Negro at 3.3%. The data once again highlights the two speeds at which the Argentine economy is moving.

While the boom in oil and mining operations promises growth in the provinces where these projects are located, the real economy (primarily manufacturing, construction, and consumer spending) continues to decline, complicating the situation in provinces where these sectors are the main drivers of employment.

To illustrate the point, one need only compare the absolute figures: Neuquén is the province that created the most jobs (+12,430), while Buenos Aires Province has lost the most (-90,103).

Losses across most sectors When comparing employment levels in June 2026 to November 2023, eleven of the fourteen sectors analyzed by consulting firm Politikón based on labor ministry data show declines.

The largest drops are seen in manufacturing (-7.4%), mining and quarrying (-8.1%), and construction (-14.2%).

The drop in employment in the mining and quarrying sector is particularly significant because it includes workers in the oil industry.

The data reveals that, while Vaca Muerta is driving employment in Neuquén, YPF’s closure of mature oil wells in other regions of Argentina — precisely to prioritize Vaca Muerta — is not enough to prevent job losses in the oil sector in the rest of the country.

On the other hand, only three categories have shown improvements since Milei took office: agriculture (10%), fishing (3.8%), and education (0.1%).

This sharp drop in employment has been accompanied by a significant wave of business closures. According to estimates by the Argentine Center for Political Economy (CEPA, for its Spanish acronym) based on official data, 31,342 businesses have closed since Milei took office.