Hiring of employees in Colombia would improve slightly in the next three months

ManpowerGroup Colombia presented the results of its most recent Net Employment Expectations Survey (NEO) for the third quarter of this year.

(Read: OECD recommendations to Colombia to promote formal contracting).

The study indicates that the adjusted Net Employment Trend in Colombia is at 20%, a figure that represents an increase of 5 percentage points (pp) compared to the previous quarter, although it shows a decrease of 6 pp compared to the same period of the year. last year.

By region, the survey shows that hiring prospects in the Pacific are the strongest in the country, standing at 29%; They are followed by: Caribbean: 25%; Andean: 20%; Orinoquía: 12%; and Amazon: 4%.

(See: Merchants, discouraged from hiring if the labor reform passes).

“The study shows an encouraging outlook compared to the previous quarter; However, we are still below the figures reflected in the immediately previous year, so it continues to be a challenging outlook for hiring employees in the country. “We continue to observe caution on the part of employers in the face of current conditions and that is why it is crucial to adopt adaptive strategies and policies that promote job creation.”said Javier Echeverri, President of ManpowerGroup Colombia.

These figures are supported by the diagnosis delivered on May 31 by the National Administrative Department of Statistics (Dane), which presented the results of the labor market for April, in which the nationalized unemployment rate fell from 10.7% to 10. .3% annually, which was highlighted by Piedad Urdinola, director of this entity.

“The public sector would continue to play a crucial role as a counterweight to the situation of low economic growth. However, the still high inflation would remain as an incentive towards greater labor participation, in an environment of weakness in productive activity where companies face difficulties in absorbing the greater labor supply.”the report mentions.

On the other hand, the sectors with the greatest demand for hiring at the national level are:
Communication Services, with 38%; followed by Information Technology, with 26%; and Consumer Goods and Services, with 27%.

Supporting these figures, according to Dane data, in April the sector that contributed the most new jobs was financial and insurance activities (77,000), followed by professional activities (63,000) and accommodation and food services (62,000). In contrast, the sectors that faced the greatest job losses were information and communications (14,000), manufacturing industries (93,000) and agriculture, livestock and fishing (109,000), therefore, they have a greater demand for hiring in the current quarter.

(Also: 83% of Colombians approve of increasing spending to generate employment).

In the Americas, Colombia (20%) is distant from other countries that have higher employment expectations; For example, Costa Rica (35%) and Guatemala (32%) stand out with the strongest hiring intentions in the region. Precisely, employers in the 12 countries surveyed in North, Central and South America report positive employment expectations for the third quarter; However, hiring intentions have decreased in 4 countries quarter by quarter and in 10 countries compared to the same period last year, with Argentina standing out with just 3%.

Likewise, the strongest Global Expectations for the Consumer Goods and Services vertical sectors (54%) are reported by employers in Guatemala; Communication Services (44%), in Mexico; Finance and Real Estate (54%) and Health and Life Sciences (46%), in Costa Rica; and Information Technologies (50%), in the USA.

(Also: Are you looking for remote workers for your company? This is how you can find the right profiles).

Against this backdrop, a difficulty continues to arise and that is that employers face difficulties in finding qualified talent in various sectors. Below are the Net Employment Trends by sector in Colombia and the difficulties reported in finding qualified personnel:

● Communication Services: 38% (+9% compared to the previous quarter, +7% year over year), with 68% of companies facing difficulties. Colombia presents extensive growth opportunities due to the growing request for cutting-edge telecommunications solutions and the urgency to enhance connectivity infrastructure.

● Consumer Goods and Services: 27% (+19% compared to the previous quarter, -4% year over year), with 62% of companies facing difficulties. In the month of May, inflation stagnated, which is expected to be reflected in Colombian consumption.

● Energy and Public Services: 13% (-9% compared to the previous quarter, -4% year over year), with 71% of companies facing difficulties. Challenges such as the impact of the El Niño Phenomenon and the delay in energy projects in the country represent challenges for organizations, which impacts their projects and their hiring intentions.

● Finance and Real Estate: 15% (+19% compared to the previous quarter, -13% year over year), with 61% of companies facing difficulties. Employers in the sector have a moderate intention, although interest rates are trending downward, high real estate prices do not reflect a good outlook.

● Health and Life Sciences: 25% (+19% compared to the previous quarter, -1% year-on-year), with 64% of companies facing difficulties. The sector is optimistic about the changes.

● Manufacturing: 20% (+3% compared to the previous quarter, -6% year over year), with 62% of companies facing difficulties. The industry is positive about the reindustrialization projects proposed by the government.

● Information Technologies: 26% (+8% compared to the previous quarter, -13% year over year), with 75% of companies facing difficulties. This sector is one of those that drives the country’s economy, driven by the use of technology to boost labor productivity thanks to generative artificial intelligence.

● Transportation, Logistics and Automotive: 23% (+17% compared to the previous quarter, +23% year over year), with 62% of companies facing difficulties. A stabilization of the sector is expected, and a stabilization of its sales.

59% of companies in Colombia have already adopted AI, an increase of 21% compared to the previous year (38%). Perception of the impact of AI varies by region and employee seniority. While 65% of the workforce at all levels of seniority believe AI will have a positive impact, optimism is highest among white-collar professionals in South and Central America (76%) and lowest among blue-collar workers online in Europe (54%).

The most common challenges in AI adoption include:

● Lack of skills to use AI: 34%.
● Privacy and regulatory concerns: 30%.
● Lack of appropriate AI tools: 28%.

Employers agree that AI and Machine Learning (ML) will have a positive impact on business performance, especially in the Manufacturing (89%) and Information Technology (88%) industries.

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