Formal employment grows only in oil and mining provinces as dollar lags behind

The evolution of the dollar and private formal employment exposes two traits of the economic framework promoted by Javier Milei's government. While inflation advanced at a faster pace than the exchange rate, the creation of registered positions remained concentrated in three provinces linked primarily to oil and mining activity.

Year-to-date, prices accumulated an increase of 21%, compared to a dollar rise of 3.5%. The Banco Nación rate moved from $1,480 at the close of 2025 to $1,530 on August 30. In real terms, the currency registered a decline of 9%, according to the analysis cited in the report.

The ceiling of the exchange rate band was set at $1,894, approximately 25% above the wholesale quote on Friday mentioned. This difference impacts industrial costs and the competitiveness of local production against imported goods. The Government sustains the exchange rate strategy through operations with dollar-linked bonds, futures contracts, and lower reserve accumulation.

In parallel, private formal wage employment data for June shows marked territorial disparity. Neuquén registered an increase of 5.2%, Río Negro of 3.6% and San Juan of 1.4%. They were the only jurisdictions with positive variations, out of 24 provinces analyzed.

The opposite was observed in Tierra del Fuego, Misiones, Formosa, Corrientes, Chaco and Mendoza, which showed the largest declines. On an annual cumulative basis, 120,000 private registered jobs were lost: 48,000 corresponded to Buenos Aires province and 23,000 to Buenos Aires City, while Neuquén, Río Negro and San Juan combined added around 12,000 positions.

The positive trade balance of US$16 billion during the first seven months of the year provides additional support to the exchange rate framework, although its sustainability remains linked to the evolution of international prices for oil and other commodities.

With information from Clarín — Economía.