Overall Score

6.1 in 2015 5.9
0 2.5 5 7.5 10

Key Finding

Colombia’s overall Index score increased in 2016 suggesting the skilled labour market has tightened. This reflects the twin impacts of reduced labour supply (as measured by a deterioration in education flexibility and labour market participation) and increased overall wage pressures.

Due to the lack of availability of Colombian occupational wage data, the overall Index score was calculated using six indicators.

 

 

BREAKDOWN OF SEVEN INDICATOR SCORES

Scores
0 2.5 5 7.5 10
Education
flexibility
6.1
Labour market
participation
8.3
Labour market
flexibility
7.3
Talent
mismatch
6.6
Overall wage
pressure
5.0
Wage pressure in
high-skill industries
3.2
Wage pressure in
high-skill occupations
N/A

COUNTRY OVERVIEW

View from the ground

Colombia’s economy slowed during 2015 and continued to do so in the first half of 2016. Following the sharp drop in oil price, the country has been left with a unsustainable external imbalance hitting the crude-dependent economy hard and causing a devaluation of the Colombian Peso and a 6.7 per cent inflation rate for 2015. Industrial and tourism sectors benefitted from the new exchange rate and consequently the economy has stabilised at a lower growth rate. This has affected the labour market with less pressure on salaries, mainly for high-skill industries. Even three per cent economic growth would not be enough to reduce the overall labour market pressure the country is currently experiencing.

Axel Dono, Managing Director, Hays Colombia

Axel Dono, Managing Director, Hays Colombia

Country Profile

Despite facing a severe terms of trade deterioration due to the decline in commodity prices, the Colombian economy was one of the region’s top performers last year.

Real GDP growth is projected to be between two and three per cent in 2016, before gradually increasing in the medium term.

Axel Dono, Managing Director, Hays Colombia

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