Lawmakers approved Argentinian President Javier Milei’s labor overhaul, a major victory for the libertarian leader’s economic agenda.
The new laws — which were fiercely opposed by unions — will make it easier for firms to fire employees. High severance packages do not just make this “almost impossible,” the Associated Press reported, but also disincentivize formal employment: Around half of Argentinians work off the books, and private sector job growth has remained stagnant for years.
“This law represents a turning point in Argentine labor history,” said Milei, who will be hoping the reforms translate into greater investment in the country. Despite liberalizing swaths of the economy and bringing down sky-high inflation rates, investment remains paltry in Argentina.
