Underemployment might be a problem for managers and many professionals in Los Angeles County, but their skill sets are in high demand in Latin America, where rapid economic growth is outstripping the supply of qualified professionals. If these conditions persist, Spanish might become the new language of opportunity.
From Bogota, Colombia, to Buenos Aires, Argentina, business is booming. Low interest rates, pragmatic policy reforms and rising demand for commodities have fueled an economic resurgence throughout the continent. Since 2003, foreign entrepreneurs and corporations have been increasing their presence in Latin American countries, taking risks and seizing new opportunities for future development. While market conditions continue to be favorable for foreign investment, there is an increasing concern about the impact of a growing skills gap within the Latin workforce.
Some of the causes for this shortage are rooted in monetary policy decisions and global market events in the 1990s and the early 2000s that left skilled native professional workers with few job opportunities and uncompetitive wages. Today, the situation is different. Government statistics reveal that the average economic growth rate in Latin American countries has outpaced the growth rate for engineering and information technology professionals. There is also a pronounced shortage of qualified workers in the oil, mining, gas and agribusiness industries, which have been among the fastest growing sectors in Latin America over the last 10 years. In high demand are experienced project managers and strategic planning directors that can help companies target structural growth and position them for favorable, long-term market performance.
These conditions present great opportunities for professionals and managers from nations weathering economic recession, particularly the United States and European countries. Workers in Los Angeles County might in fact have most to gain from foreign job openings; according to the most recent data from the U.S. Bureau of Labor Statistics, not only is local unemployment high, but the county has a higher underemployment rate (8.3 percent) than California (7 percent) or any other state in the nation. Consider also that only marginal growth in countywide management positions is projected through 2020. The California Employment Development Department estimates that a mere 1,370 IT managerial positions and 3,320 total managerial positions will be created by the end of the decade in the county.
Urgent situation
By taking a closer look at the labor needs in individual Latin American countries, a clearer perspective can be obtained on the urgent situation at hand.
In Argentina, 3,800 college graduates are pursuing careers in information technology each year, while studies estimate that the economy requires nearly twice that number. National data also finds that 74 percent of job openings in the production and maintenance sector are not being filled, nor are 21 percent of positions for management, administration and systems. Additionally, Chile, Argentina’s neighbor, is expected to require more than 70,000 new technicians and IT professionals in the short term.
According to the Organization for Economic Cooperation and Development, Brazil has one of the lowest levels of higher education in the industrialized world; only 11 percent of adults are college graduates. Labor shortages in Brazil’s budding software and information services sector have had a high cost for the national economy, generating a loss equal to $56.2 million in 2010.
Analysts project Mexico’s economically active population will grow by 13.3 million workers over the next two decades. However, one of the major obstacles to developing the Mexican labor market has been low education levels. Recruiting experts say that technical jobs (such as engineers and architects) are in high demand by companies and will continue to be so in the coming decades.
Scholars and business analysts in Latin America have argued that creating jobs will require promoting skilled labor mobility, and investing in higher levels of training and formal education for native workers. Elected officials and business leaders would be wise to know that increasing the number of college graduates and postgraduates may take a generation or more. Ireland’s 12-year “economic miracle” was a culmination of (among other factors) decades of increased investment in higher education. In the immediate term, qualified professionals from the United States and other countries can capitalize on these job opportunities to work abroad.
Latin America has taken steps to encourage not only foreign investment, but also human capital. For example, the Brazilian national government is exploring ways to alleviate its labor shortages, including increasing temporary work visas for citizens of Portugal, Spain and the United States.
For those in Los Angeles interested in taking a chance on a new career direction, Latin America will be welcoming them with open arms.
Damián Di Pace, who has a doctorate in economics, is involved in corporate strategic planning and communication. He lives in Argentina.
