• 6.3

    2019

0.1

Down

Key drivers

Talent Mismatch (6.2)

The mismatch between the skills held by job applicants and the skills employers are seeking has improved slightly in Colombia.

 

 

 

Education Flexibility (5.3)

The share of graduates in Colombia’s population rose again this year, increasing the supply of skilled workers.

Please note: Due to the lack of availability of Colombian occupational wage data, the overall Index Score was calculated using six indicators and therefore the Overall Index Score was calculated using six Indicators.

Labour Market Participation (9.1)

While Colombia has a modest participation rate, its growth has been slow in recent years, and this is forecast to continue this year. This will limit the rate at which the pool of skilled labour expands.

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Education Flexibility

5.3
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Labour Market Participation

9.1
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Labour Market Flexibility

7.8
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Talent Mismatch

6.2
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Overall Wage Pressure

6.1
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Wage Pressure in High-Skill Industries

3.1
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Wage Pressure in High-Skill Occupation

N/A
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Luis Fernando

Managing Director, Hays Colombia

View from the Ground

Colombia’s economy is forecast to grow by 2.4% in 2019. However, the economy and the employment market are currently facing big challenges, including external factors such as the global economy, the geopolitical landscape and the oil industry. The Government must overcome these by enacting measures such as undertaking a fiscal adjustment, promoting export diversification, developing mechanisms to protect oil wealth, addressing social tensions and promoting necessary reforms to the economy. Unemployment recently returned to two figures, the main explanation being a failure to create new jobs, in part due to poor productivity and a lack of investment. The productivity challenge can be tackled by improving the training of skilled workers.

Luis Fernando Martins, Managing Director, Hays Chile & Colombia

Key Skills in Demand

  • Sales Managers
  • Finance Managers
  • Plant/Operations Directors
  • Developers (Front & Back End)
  • Data & Analytics Specialists

Market Insight

The Colombian economy picked up in 2018, growing by 2.9%. In the medium term, the recovery from the sharp fall in oil prices in 2015-16 is forecast to strengthen, with the value of fuel exports increasing and investment in the fuel sector picking up. Labour market conditions are also expected to follow suit and improve, despite unemployment continuing to rise, reaching 9.1% in 2018, as the drag from lower oil prices continued to feed through in continued labour shedding.

The positive outlook for Colombia’s economy is driven in part by expectations that recent structural reforms aimed at promoting economic diversification and productivity will start to have a significant impact.

Payroll tax cuts and improvements in educational attainment have caused the informal labour market, in which employees work for unregistered firms, to shrink in the last decade. However, over 60% of workers remain in the informal sector, restricting the rate at which productivity increases and the economy expands.

Please note: Due to the lack of availability of Colombian occupational wage data, the overall Index Score was calculated using six indicators.