Argentine government prepares subsidies to contain unemployment

In the midst of the decision to advance the decree that will end the ban on layoffs and establish a gradual scheme to end double severance payments in Argentina, the government will now launch a mega employment plan that will try not only to avoid an eventual impact unemployment, but also seeks to reactivate the economy.

The Ministry of Labor led by Claudio Moroni is already preparing for the launch in January of the expansion of the Fomentar Empleo plan, which will not only reach young people between 18 and 25 years of age as it happens today, but will also be extended to workers over 45 years old and women between 25 and 60 years old with dependent children.

It is a strong commitment from the government that will be in its fullness from the Employment Portal and that in the Casa Rosada they evaluate that it will be a work program rarely seen to counteract the harmful effects of eventual dismissals or a possible retraction of the economy in the face of continuity of the pandemic.

According to qualified sources from the Casa Rosada, the idea of ​​the Fomentar Empleo plan is to offer job orientation and professional training plans whose benefit will be 7,500 pesos per month (about 75 US dollars) and work placements in companies for 15,000 pesos per month (150 dollars).

In the case of young people between 18 and 25 years of age who are receiving this program today, the idea is to expand the enrollment base, which until December reached 150,000 people and which has already reached 85,000 who met the conditions.

“Due to the lack of a 2022 budget law that the opposition did not approve in Congress, the total scope of beneficiaries that this program may have is not yet known, although the idea is to maximize the Fomentar Trabajo plan,” said a friend of the minister Moroni.

On the other hand, it was learned that the idea of ​​extending the labor program to men over 45 years of age with dependent children and to women between 25 and 60 years of age aims to reactivate the economy.

The conditions to achieve this program will be that they are unemployed, informal workers, who in the last three months have not made contributions of any kind and who do not have registered jobs.

The salary of 15,000 pesos per month for the labor practices obtained will be fully supported by the State in the case of SMEs or companies with less than five workers. And in the case of medium or large companies, only a part will be subsidized.

It is estimated that companies linked to the area of ​​construction, tourism or gastronomy will be the ones that will most need to take on these workers because they are the sectors where there was a notable reactivation of the economy.

During the pandemic, the Work and Production Assistance Program (ATP) was announced, which paid up to 50% of the net salary, with a cap. Then the Productive Recovery Program (Repro) was established, which is almost no longer enabled and now an attempt is being made to refloat the Plan to Promote Employment as a way to cushion the decision to annul in the short term the decree that established the prohibition of dismissals and the double compensation mechanism.

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