Global talent demand has forged the Latin American recruitment market into the hottest
sourcing destination. In the aftermath of almost two years of economic uncertainty, technological
advancement — stimulated by a record-setting year for venture capital investment — opened the
doors for a new era in which talent and opportunities aren’t constricted to geographic
boundaries. An age of remote work. A time of offsite teams.
In this context, and heavily encouraged by the devaluation of Latin currencies
comparatively to more robust economies, Latin America is driving a new hiring boom in the
region. Although the tech industry is the number one segment benefiting from the advantages of
hiring remotely, due to the less physical nature of those positions, the tendency to explore global
talent beyond local limitations has been a reality in virtually every industry.
According to data from a survey by Deel, a startup founded in Silicon Valley that makes
payroll and compliance for international teams less complicated, global hiring by tech companies
in Latin America increased 286% in the second half of 2021. The volume is greater than
Europe, Middle East, Africa (+250%), and Asia (+227%), other well-known sourcing
destinations. The survey reveals that Latin American talent appears as the most requested by companies across the globe. From July to December of 2021, the volume of workers hired in the
region grew 156%, surpassing Asia (+107%) and the combined hiring volume registered in
Europe, the Middle East, and Africa (+96%).
The recruitment boom in Latin America is mainly pulled by the United States, United
Kingdom, Philippines, Nigeria, and India. However, countries within the Latin American region
are also benefiting from the advantages of hiring abroad. Mexico, Chile, and Uruguay are
among the nations that most hire people from other nationalities. From a talent perspective,
Argentina, Brazil, and Mexico registered the highest number of professionals employed by
international companies. Deel’s report shows that the most in-demand positions for tech
companies worldwide are software engineers, account executives, quality assurance engineers,
product designers, and consultants.
The race for talent
The increasing interest in the Latin American recruitment market by international players
is partly due to the widening gap in talent supply and demand in the global arena. As companies
transition into more digital business models, the outcry for tech talent increases, revealing a
shortage of skilled professionals. Last month’s headlines covered a concerning number of layoffs
and hiring freezes. But those are seasonal movements of expansion and contraction in the
economy. The undeniable reality is that managers will witness a looming shortage of skilled
professionals across industries and continents, which will force a global process of talent reskilling to serve the aspirations of a new economic era.
The International Monetary Fund (IMF) predicts the tech talent shortage will augment to
more than 85 million tech workers by 2030, roughly equivalent to the population of Turkey (83,429,620) or Germany (83,132,800). Left unchecked, the shortage could fuel revenue losses of
over $8 trillion annually in the United States alone. The country, as many, does not produce
enough IT graduates, relieving heavily on international students to supply the demand for tech
talent. That is the underlying reason motivating hiring managers to appeal to foreign markets in
search of skilled professionals. Not to mention the financial margin for managers and employees
to negotiate competitive salaries due to currency exchange rates, which makes international offers
sometimes more appealing than locals.
Adding more spice to the pot, Latin America is expanding as an important unicorn
breeder. Currently, the region has 50 unicorns — privately held, venture-backed new companies
with over $1 billion valuation — which represents a significant jump from the single digit of five
years ago, when Argentina was the only Latin country on the innovation map. In today’s
account, Brazil is leading the rank, followed by Mexico and Argentina.
That means the race for talent has intensified. With more investment flowing into Latin
countries, naturally, those companies will have more negotiation power to hire local talent.
Meanwhile, professionals worldwide are trying to redefine what work means for them and
whether they want to subscribe to corporate demands. At the same time, international companies
are trying to lure professionals back into the 9-to-5 life. In the end, if companies aim to win the
race for talent, they will need to understand that the recruitment game has changed. And it’s
always wiser to rely on those who know the playing field better.
Want to know more about hiring abroad? Schedule a consult today with one of our hiring experts.