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labour Markets and welfare states: a country perspective<br />

aged over 65 years, and 59% are women (Instituto nacional de Estadística<br />

y Censos [InDEC], 2001). around 600,000 people belong to one of the more<br />

than 30 different ethnic groups (InDEC, 2005), while 4.2 per cent of the<br />

inhabitants are foreigners: paraguayan (21.2%), Bolivian (15.2%), Italian<br />

(14.1%), Chilean (13.8%) and spanish (9%) (InDEC, 2001).<br />

During the decade of the 90s, argentina suffered under the<br />

neoliberal policies promoted by the Imf and World Bank, which after<br />

two years of continuous economic recession finally led to an<br />

enormous social crisis in 2001. for example, in 2002 unemployment<br />

(21.5%) and poverty (54.3%) were the highest in the country's history.<br />

a period of sustained economic growth began in 2003, which has<br />

s<strong>low</strong>ly improved the most extreme social situations, although a<br />

regressive taxation model still persists, lacking appropriate<br />

redistributive social policies to address the huge social inequalities.<br />

By 2007, 27 per cent of the population was still living in poverty and<br />

almost 9 per cent did not have sufficient income to cover the cost of<br />

a basic weekly grocery basket (InDEC, 2006a). The distribution of<br />

poverty is highly unequal across the country: 46 per cent in the<br />

northern provinces, 25 per cent in the peripheral urban areas of<br />

Buenos aires, and 33 per cent in the rest.<br />

The rate of active employment among people aged over 14 years<br />

was 46 per cent in 2006, with considerable differences between<br />

sexes (45% in women, 70% in men) (InDEC, 2006a). The distribution<br />

of employments places 1.2 per cent in primary production, 14 per<br />

cent in manufacturing industries, 69.7 per cent in the services sector<br />

and 8.8 per cent in the construction industry (InDEC, 2006a).<br />

Important manufacturing industries include automobiles and<br />

transport equipment (InDEC, 2006b), while commerce (20%) and<br />

financial services (10%) stand out in the services sector (InDEC,<br />

2006b). finally, the construction industry has grown since 2003 and<br />

by the end of 2007 rates of employment had doubled those of the 90s<br />

(InDEC, 2008).<br />

In argentina, 325,000 people born in neighbouring countries aged<br />

over 14 years work in the services sector (44.8%), in domestic<br />

services (21%), construction (16.8%), industry (14.3%), and<br />

agriculture (2.2%) (InDEC, 2003). Insertion rates of paraguayans are<br />

highest in construction (30%), while Bolivians are predominantly<br />

employed in the services (47%) and industrial sectors (20%,<br />

particularly the textile industry), and Chileans are found mainly in<br />

services (46%) (InDEC, 2003), although there are no reliable data on<br />

their unemployment rates, access to benefits, accident rates, etc.<br />

similarly, no reliable information exists about slavery, although<br />

various organisations have denounced these practices among<br />

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