Private Sector Contraction Deepens: Employer Companies Decreased by 3.3% Year-on-Year

The number of employer companies in the private sector continues to decline and reached its lowest level in the 2023-2026 series in May. According to official data from the Superintendence of Labor Risks (SRT), in May, there were 477,463 firms with at least one declared worker under the labor risk system, representing a year-on-year decrease of 3.3% compared to the same period last year.

In absolute terms, this equates to 16,422 fewer companies than in May 2025. Furthermore, the most significant data point is the persistence of the trend: with the May result, there have now been 27 consecutive months of year-on-year declines, according to a recent report by Consultora Politikon Chaco.

Additionally, the pace of deterioration has accelerated since September 2025. The 3.3% drop recorded in May represents, according to the surveyed series, the largest year-on-year decline of the entire period.

This phenomenon indicates a sustained contraction of the base of private companies that formally participate in the labor market. In fact, the comparison with the beginning of the current national administration shows an even greater magnitude, as compared to November 2023, the month prior to the start of the Government, there are 30,385 fewer employer companies, equivalent to a contraction of 6%.

Industry and Commerce Among the Most Affected Sectors

The decline affects nearly all major sectors of activity. The manufacturing industry recorded a year-on-year drop of 5.5%, with 2,639 fewer companies, while commerce showed a decrease of 4.4%, equivalent to 6,490 firms. The agriculture sector also declined by 2.6%, with 1,361 fewer companies, and construction fell by 2.3%, losing 456 employers. The rest of the grouped activities showed a contraction of 2.4%, equivalent to 5,476 firms.

The comparison against November 2023 shows that the deterioration is not limited to a single sector. Since then, construction has accumulated the largest relative drop, at 9.3%, followed by the manufacturing industry, with a decline of 8.1%, and commerce, with a decrease of 5.6%.

Neuquén Escaped the Trend

The loss of employer companies also has a strong territorial impact. In May, of the 24 jurisdictions surveyed, Neuquén was the only one that showed year-on-year growth, albeit marginal: just 13 more companies, equivalent to an increase of 0.1%.

On the opposite end is La Rioja, with a drop of 16.1%, while significant declines were also recorded in Misiones (-8.9%), Tierra del Fuego (-8.2%), Catamarca (-7.6%), and Santa Cruz (-6.7%).

In terms of volume, the largest losses were concentrated in districts with the highest number of companies. Buenos Aires lost 4,786 employers, Córdoba 2,664, CABA 1,704, and Santa Fe 1,509. Together, these four jurisdictions account for 78% of the total employer companies in the country, so their evolution has a decisive weight on the national result.

The loss is even more pronounced when taking November 2023 as a reference: Buenos Aires has accumulated a loss of 8,076 companies, Córdoba 4,796, CABA 3,184, and Santa Fe 3,043.

This data thus marks one of the less visible aspects of the evolution of the labor market; it is not only important how many jobs exist, but also how many companies remain active as formal employers.

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