July 23, 2014
Gov't observes 'no job reduction'
Cabinet Chief Jorge Capitanich has defended the recently released unemployment rate that say a reduction of 0.7 percent during the first trimester of the year compared to the same period of 2013. Queried about the situation in the auto industry, the head of ministers assured “no job reduction has been observed.”
Capitanich made the statements after visiting the Marfrig cold storage in the Santa Fe province locality of Hughes. The facility will create 524 jobs in a district where 25 percent of its population depends directly on the company which provides frozen meat warehouse services.
“What matters is to generate the conditions for the domestic market supply and that will have a multiplying effect on the development of the economic activity in Santa Fe and in the Republic of Argentina.”
After the Marfrig stop, the chief of staff of the Cristina Fernández de Kirchner administration inaugurated an emergency center and walked through the CEDECON port workers center.
Queried about the situation of the automobile sector, Capitanich confirmed a drop in sales but targeting foreign demand reasons.
“The auto industry follows a process of integration with Brazil. The Flex agreement that expires on June 30 is being negotiated and the perspective is to integrate the development of the auto parts system and its value chain to create more trade balance,” the minister added and pointed out that the 800,000 vehicles were sold in 2013 and that 87 percent of the production is exported to the South American giant.
“There has been a change of scenario over the past months which has to do with a reduction in the Brazilian demand,” he insisted and assured the federal government “was working on an incentive scheme in the auto part system, the (Flex) agreement with Brazil and the recovery of the market to guarantee job stability.”
Regarding the suspensions of workers in the sector – specially in the case of General Motors with 79 percent of its production being sent to Brazil -, the official affirmed the government was “monitoring all sectors of the economy” and highlighted the latest figured provided by the INDEC statistic bureau that show unemployment fell from 7.9 percent to 7.1 percent.
“We have seen no reduction in the number of jobs,” he assured.