Increased interest in nearshoring has many US employers looking to invest in South and Central America, both for professional and industrial resources. Recent elections and legislative changes have Mexico and Peru at the top of the list for full time employment and Colombia, Argentina, and Brazil leading areas of interest for contingent labor. The US, Canada, and Puerto Rico rank highly in both supply and regulation of talent with adequate English Proficiency while Chile and Costa Rica represent cost efficient locations with high productivity, low cost, and regulatory ease. While skill specific location mapping may vary based on criteria, these top five locations rise to the top for consideration across more labor categories than their neighbors for both onsite and remote talent.
Size of the bubble reflects the Relative Workforce Supply of each market, while the color reflects Relative Regulation
The Total Workforce is a combination of all the workers engaged in either Contingent or Permanent work within each country. Below, we explore the top five markets in this region overall, as well as the rankings by category. Click the country flag to view the market profile for this country.
Average wage, though a great tool comparison, is predominantly driven by the ratio of highly skilled jobs to lower skilled jobs. Markets with a higher volume of highly skilled jobs will average higher wages than markets with a high volume of low skilled jobs. Therefore, not all markets with lowest wage are the lowest for rates for a given skill.
Manufacturing wages are a leading indicator of rising costs as they typically rise before the wages of professional skills. Manufacturing wages are particularly sensitive to inflation and statutory burdens. Therefore, though the cost of manufacturing skills may be much lower than more highly skilled jobs, they are generally the first to reflect the rising cost of wages in a market. Due to increased digitization and automation, some markets are showing higher wage increases than others. Specifically, those driven by other industry products such as automotive and pharmaceutical.
Technology wages reflect the average take-home pay for all IT roles within any industry across the country. They do not take into account seniority and expertise. Actual wages will vary based on IT requirements and experience.
Employment tax is a basic statutory burden that employers need to add to wages when calculating the cost of skills in a workforce market. It is typically the first metric of consideration beyond the wages themselves. Wages largest component of total labor cost. However, taxes are the best indicator for total cost. They are also more representative of the labor cost per market than insurance as insurance appears more standardized, while taxes are unique to each market.
As workforce experts, ManpowerGroup find work for millions of people around the globe every year, helping hundreds of thousands of companies attract, assess, develop, and retain skilled workers.
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