The statistics institute Indec is also expected to announce over the next few days that 1.7m fewer Argentines were poor and indigent in May than in October 2002. A record high of 20m Argentines (57.5% of the population) were below the poverty line last year, while 27.5% of the population were beneath the level of destitution.
There are important caveats to bear in mind regarding both sets of data, however. Unemployment figures tend to fall over the October-May period, and, as they only take into account people actively seeking employment, they do not give a true indication of the number of people out of work. Therefore, while the Indec figure for May is expected to come in at just above 15%, the real figure is thought to be somewhere around 20%-21%.
A genuine recovery in employment figures can only be expected when consumer spending recovers. The present increase in jobs comes as a result of domestic industries recovering their competitiveness against imported goods as a result of the devaluation of the peso, but this trend is not expected to last.
The government announced last week that it was raising the minimum monthly wage, from Arg$200 (US$71) to Arg$250, and the minimum pension from Arg$200 per month to Arg$220.
Although the increases came as something of a surprise, the fact that a basic food basket cost Arg$228 per month at the end of June underscores the extent to which such a move was necessary. According to labour minister Tomada, the decision 'may be seen as a starting point for recovering the purchasing power of wages.' The minimum wage will continue to rise by Arg$10 a month until December.
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