Politics Economy Local 2026-03-01T19:44:33+00:00

Senator Godoy: Labor reform will have no immediate impact, growth possible next year

Senator Godoy of LLA stated that Argentina's labor reform will not lead to immediate changes in the job market. He said the first signs of growth will only be visible next year, with significant improvements possible within President Milei's second term. Godoy also announced a packed reform agenda for the current year.


Senator Godoy: Labor reform will have no immediate impact, growth possible next year

Senator for La Libertad Avanza (LLA), Juan Cruz Godoy, anticipates that the recently passed labor reform will not have an immediate impact, with job growth potentially visible only in the event of a second term for President Javier Milei. According to Godoy, speaking on Domingo 630 on Radio Rivadavia, “no major changes will be felt in the first year.” He stated that “starting next year, we can already see some signs of growth,” delaying the direct effect on employment to a new libertarian administration. Godoy explained that “this law was not designed for immediate short-term application but to allow for an adaptation period and a transition.” He acknowledged that “all change involves a certain level of stress,” expressing hope that it will be “calm and beneficial” and that improvements in registered private employment may become visible “within the president's second term.” Arguing the long-term impact, he pointed out that “several articles are deferred, meaning statutes have a year to be renewed, and the Labor Assistance Fund (FAL) can only be applied starting in June or later.” He added that “once the FAL is implemented, it can only be used for employees who have been with the company for a year,” which also delays the effect. In the context of the opening of the ordinary sessions of Congress, which Milei will head tonight, the senator previewed an intense agenda of new reforms, stating, “there will be no vacations for legislators, so tighten your seatbelts, a lot of reforms are coming.” Regarding the content of the bills that will define the legislative year, he detailed that “we can infer that there will likely be something fiscal, as we are at a moment to make the long-awaited reform of our tax system, which is quite burdensome.” Godoy also emphasized that this will not be the only axis and insisted that “deep reforms are coming, but above all with great consensus and with the great support of most of the spaces that want a better and prosperous country, with people working and being happy.” In this sense, he stated that “the president has Argentines accustomed to setting challenging goals” and stressed that “very soon, I hope we can already see the fruits of all this effort that the people are making and all this work that is being done: greater consumption, greater investment, greater growth, more jobs, and better prosperity and quality of life for all Argentines.” The legislator also revealed that the security operation at Congress tonight will be normal, detailing that despite the tension in the Middle East, “there was a communication transmitting tranquility,” and ordinary protocols will be followed. Additionally, he confirmed that the president has invited the libertarian bloc to the Quinta de Olivos once the opening of the ordinary sessions is concluded.