Argentina’s Senate approved President Javier Milei’s signature labor reform with a 42-28 vote, ending a months‑long clash with entrenched unions. The bill, billed as the nation’s most sweeping economic overhaul in decades, seeks to dismantle 1970s‑era labor rules that have kept hiring rigid. Passage clears the way for Milei to push his broader market‑opening agenda, still today.

The reform targets an economy where roughly half the workforce operates off the books, moving wage bargaining from sector‑wide agreements to individual firms. It creates a mandatory severance fund to finance layoffs, cutting the costly “litigation industry” that has discouraged dismissals. By lowering the “Argentina Risk” premium, officials hope to unlock access to global bond markets and attract foreign capital.

With the bill secured, Milei will travel to New York in March to pitch Wall Street banks and investment funds, using the reform as a proof‑of‑concept for his political durability. Investors now weigh the upside of fresh financing against rising unemployment, which has eclipsed inflation as voters’ top worry. Immediate market reaction will hinge on whether capital inflows can offset the restructuring pain.