Argentina unemployment rises as Milei faces protests

That trade-off is now at the center of Argentina’s policy debate. The informal workforce has expanded to 45% of the labor force, according to the statistics agency Indec, reinforcing the view that job creation and household purchasing power are lagging behind the stabilization in prices.

The protests were not just about the economy. Students, unions, environmental groups and LGBTQ activists joined the march, broadening the challenge to Milei’s social agenda and helping opposition figures such as left-wing lawmaker Myriam Bregman bring together a wider anti-government coalition.

For investors, the political backlash matters because it raises the risk that Milei’s reform drive loses momentum before the 2027 election. Argentina has won some credibility with markets as inflation cools, but sustained unrest could complicate further austerity, delay additional liberalization and keep risk premiums elevated for local assets and dollar-denominated borrowers.

Public universities have become a focal point of resistance to budget cuts, adding another pressure point for the administration as it faces protests over pensions, wages and spending. The coming months will show whether Milei can preserve his macroeconomic stabilization without deepening the social costs that are now feeding a broader backlash.