The real salary fell 6.3%, according to official data

September 29, 2018 - By Arturo Altman

The real wages of the workers continue down. In the first seven months of this year, discounting inflation, real wages fell by 6.3%, according to INDEC data. With a rise in average inflation between January and July of 19.6%, wages increased by 12.1%. It represents a loss of 7.5 points.

The biggest fall was in the income from unregistered employment: it was 10.6%. Among public employees fell 6.5% and the decline of the private sector was 4.3%.

Meanwhile, if the income of informal workers is discounted inflation of the poverty basket of that period, which was 20.7%, the real loss of income rises to 11.4%. And the fall is greater if one considers the inflation of the indigence basket of 22.2%.

This data shows a greater increase in poverty levels because many workers were earning at the limit of the value of the poverty basket. And because employees “in black” earn up to 52% less than the rest of the workers and in proportion, they are being punished more by the rise in prices and also by the decline in employment.

In the measurement of the INDEC, those who are registered represent little more than half of the workers, the public sector almost 30% and the private non-registered almost 20%. And the rate of income of unregistered employees has a 5-month update lag, which would lead to a further decline forward.

These numbers are close to those of the Ministry of Labor that reported that, last July, based on the statements of companies before the Social Security, the salaries of registered private employees had fallen 6.1% year-on-year. The Labor Report stated that registered employment fell again in July, accumulating 129,800 fewer jobs in the first 7 months.

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