Introduction
According to the Organisation for Economic Co-operation and Development (OECD), America Latina is grappling with the most severe skills shortage globally. The region, including Mexico, is experiencing significant performance issues due to a lack of skilled workers in various sectors.
The Extent of the Skills Shortage
In America Latina, four out of five advanced manufacturing companies—such as the automotive sector—report difficulties related to talent scarcity, as per the OECD’s report “Perspectives Economic for Latin America 2025.”
The OECD states that companies in Latin America and the Caribbean (ALC) are 13 times more likely to face performance issues due to a lack of skills compared to other regions like East Asia.
The advanced manufacturing sector, crucial for transforming production in America Latina and the Caribbean, is particularly affected. For instance, automotive companies face 160% higher chances of performance issues due to skill shortages than other manufacturing sectors.
Sector-Specific Challenges
The struggle varies across sectors and economies. While the manufacturing sector, especially advanced ones, faces difficulties in finding qualified workers, the agroalimentary sector also requires skilled talent. However, most training remains anchored in agronomy and traditional processing methods rather than biotechnology, food chemistry, or data science.
The Role of Education and Training
For both workers and educational systems in Latin America, merely having a degree is no longer enough to secure employment or address the talent shortage. As industries evolve, traditional educational credentials may fall short in reflecting an individual’s full skill set.
For example, Chile’s mining sector demands skills in automation, remote operations, and data analysis. However, professional and university programs focus on extraction and geology instead of mechatronics, the Internet of Things, or data science.
The OECD suggests that workers should complement their formal academic training with additional courses, practical experience, and demonstrating skills in real-world settings to remain competitive.
For those with valuable skills gained through experience, online education and non-formal learning can equip them with relevant and in-demand skills sought by companies.
Investment in Education
Addressing the talent shortage requires investment in education, including international cooperation and foreign direct investment through foreign companies.
Between 2014 and 2024, $2 billion were invested in foreign direct investment (FDI) for new education and training projects in America Latina and the Caribbean, according to the OECD.
These investments have gone towards establishing technical schools, vocational training centers, and international capacity-building centers, all essential for enhancing skills and aligning them with labor market demands.
Mexico attracts the most of these education investments (42%), followed by Colombia (31%) and Brazil (8%). Most investments originate from the European Union (32%) and America Latina and the Caribbean (22%).
Mexico’s Talent Shortage
In Mexico, 70% of employers report difficulties finding suitable talent, up from 68% in 2024, according to ManpowerGroup’s “Talent Shortage 2025” report.
The sectors with the most difficulty filling positions are transportation, logistics, and automotive (80%), followed by information technology (77%), finance and real estate (76%), and energy (73%).
The hardest-to-fill positions in Mexico are operational and logistics roles, followed by Front Office, customer service, sales and marketing, information technology, data analysis, and engineering.
Just this week, the federal government launched a new Public Center for Artificial Intelligence (AI) training to equip students with digital skills via the SaberesMx platform.
Additionally, the government included measures in its “Productivity and Competitiveness 2025-2030” program to promote vocational training and workforce retraining.
Key Questions and Answers
- What is the main issue in America Latina according to the OECD? The OECD reports that America Latina faces the most severe skills shortage globally, impacting various sectors and causing performance issues.
- Which sectors are most affected by the skills shortage? The advanced manufacturing sector, particularly automotive, and the agroalimentary sector requiring skills in biotechnology, food chemistry, and quality control systems are significantly impacted.
- How can workers address the skills shortage? Workers should complement their formal education with additional courses, practical experience, and demonstrating skills in real-world settings.
- What role does investment in education play? Investment in education, including international cooperation and foreign direct investment, is crucial for enhancing skills and aligning them with labor market demands.
- What are the most difficult-to-fill positions in Mexico? The hardest-to-fill roles in Mexico are operational and logistics, followed by Front Office, customer service, sales and marketing, information technology, data analysis, and engineering.
