With the recession affecting the economy, the National Institute of Statistics and Census (INDEC) reported that unemployment rose to 9.3% of the population in the second quarter of 2016 compared with the third quarter of last year which was 5, 9%.

As the manufacturing sector is one of the most affected by the recession - particularly small and medium-sized enterprises - no wonder that the highest unemployment figures coincide with the industrial centers.

In addition, unemployment is felt more intensely in the most populated cities, by the fall in construction. According to the latest report of the Estudio Bein, the activity in the second quarter and the first records of the third quarter speak for themselves: the economy is still in recession with losses reaching 18% in construction, 6% in industry and 5% in trade.

The highest unemployment rates correspond to Gran Rosario - 11.7%, -Mar del Plata - 11.6% - Gran Córdoba - 11.5% - Greater Buenos Aires - 11.2% - Rio Cuarto - 10.5% - and 10.6% Buenos Aires -. Thus, the number of unemployed amounted to 1,165,000 people.

"It is clear that we face a serious situation in the labor market", said the head of the INDEC, Jorge Todesca, at the press conference.

The above 9, 3% rate increase released by the official body is coincident with some private estimates, as the Estudio Bein projected 8.5%, while others, such as Ecolatina projected unemployment of 12% for the year. Meanwhile, the Directorate General of Statistics and Censuses of the City of Buenos Aires estimated that the unemployment rate in the first quarter of the year came to 8,6%, with an increase of nearly two points compared to 6.8% for at the end of 2015.

Underemployment according to the INDEC represents 11.2% of the population.

Another fact that emerges from the official report is that one of every three workers works in the informal economy. According to INDEC, the proportion of unregistered employment reaches 33.4%.

According to specialists in the labor market, the permanence of a high unregistered employment rate responds to various factors, including labor legislation that favors litigation and the heavy burden of taxes and contributions. According to the categories, entrepreneurs must face a labor cost representing between 35 to 50% of salary. Meanwhile, workers suffer a discount of 12% by contributions.

According to data from the Ministry of Labor corresponding to last May, registered employment reaches 6,135,000 people, representing destruction of almost 60,000 jobs from the previous month.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.