In recent months, the government has been grappling with the consequences of its economic adjustments. Official data shows that private jobs have been steadily dwindling since September, with projections indicating a continuation of this trend. The officials attribute this drop in employment to a combination of factors, including a recession, sales decline, and hiring slowdown. This marks the largest employment decline in 22 years.
The government is concerned that if the Base Law is not approved soon, the recovery will be delayed. There are fears that companies are holding back on hiring due to uncertainty around the law. In response to this issue, the government initiated a shock plan six months ago, which included measures such as devaluation, price liberalization, rate increases, and layoffs. However, now it is pinning its hopes on legislative packages to stimulate the economy.
Economists remain cautious about the economic outlook due to high inflation rates and persistent declines in activity. Despite this uncertainty, experts believe that the reduction in formal employment is mainly due to companies suspending hiring in response to declining sales and production across various sectors such as construction, commerce, financial services, transportation, and industry. Overall, 126,000 fewer private jobs have been lost since August due to these factors.
