This article is part of:Centre for the New Economy and Society

• 84% of employers in Latin America and the Caribbean plan to upskill their workforce themselves to meet rising demand for digital and tech talent, according to the World Economic Forum’s Future of Jobs Report 2025.
• There’s also an increasing need for soft skills such as leadership, social influence and resilience as automation and climate change transform business operations.
• Organizational cultures and outdated regulations are seen as the biggest barriers to transformation, with increased flexibility around hiring and firing practices the most desired public-policy measure.

Latin America and the Caribbean is a region riven by digital divides. Just two-thirds of households have internet access, far below the OECD average of around 91%, and connectivity rates in some countries and rural areas are even lower.

The flipside of this is that it leaves huge scope for advances, which is why digitalization is expected to be one of the biggest drivers of labour-market transformation in the region over the next five years, as highlighted in the World Economic Forum’s Future of Jobs Report 2025. It shows that broadening digital access is considered the most transformative trend in Argentina, Brazil, Colombia and Mexico.

Two other areas where change is closely interlinked to digital access and skills are climate mitigation efforts and labour and social issues, and it’s no coincidence that employers also see these factors as among the biggest drivers of change for them in 2025-30, as the Future of Jobs Report shows.

What does the future of work look like in Latin America and the Caribbean? Different to the present. The number of big data analysts, AI and machine learning specialists is expected to surge, but attracting this new kind of talent won’t happen unless companies change too, rethinking the outdated organizational cultures that many see as barriers to business transformation, redesigning salary and compensation offerings, and reassessing their approaches to employee wellness.

Key labour-market trends in Latin America and the Caribbean

The demand for skilled talent is leading to calls for more public funding for reskilling and upskilling among employers in Latin America and the Caribbean, with 51% saying this is needed this decade. This is also the most desired policy measure in Colombia and Mexico, supported by 60% and 51% of employers surveyed, respectively.

But for 84% of employers, the answer is to upskill their workforce themselves, according to the Future of Jobs Report. In Brazil, Colombia and Mexico, upskilling ranks first in the workforce strategy that employers plan to adopt in the next five years.

"One of the fastest-growing jobs in the region is sustainability specialist, with the number of roles expected to grow 29% by 2030"

“It is clear that on the global stage, and especially in the Mexican market, upskilling will be of utmost importance in the coming years,” says Valeria Moy, General Director of think-tank the Mexican Institute for Competitiveness (IMCO), whose reports such as Unfilled Vacancies in Mexico's Labor Market have examined the reasons behind talent shortages and skills gaps in the country. “AI and big data will become huge players, and soft skills such as leadership, creative thinking and resilience will be in high demand. Mexico needs to take action on talent development in a way that responds to these trends, otherwise the economy will not be able to keep up with global standards.”

Across the region, eight in ten companies expect talent development to improve among their workers in the next five years, while barely over a third see talent availability improving on the open market.

In a region where dramatic change is not just expected but demanded, organizational cultures and outdated regulations are seen as the biggest barriers to business transformation, with each highlighted by about 50% of employers surveyed for the report.

This situation is most acute in Colombia, with 61% of firms citing outdated or inflexible regulatory frameworks as a barrier to transformation. In Argentina, 57% believe change is being impeded by outdated regulations, while 48% blame organizational cultures and resistance to change.

The way forward is to increase flexibility around hiring and firing practices. This is the most desired public-policy measure in the region, with companies believing this will have the biggest effect on increasing talent availability.

Latin America eyes technology

Developing talent is one solution to a skills crisis, but for 81% of firms, accelerating automation is also an answer.

This is particularly the case in Argentina and Mexico, where a respective 96% and 95% of companies expect AI tools to transform their operations in the next five years.

Robotics are expected to be at the heart of this in Mexico. The country is a major manufacturing hub and its imports of industrial robots rose by a quarter in 2017-22. A total of 63% of companies in Mexico see robotics transforming their operations this decade.

Yet people will still be needed to oversee these machines and company operations, which is why some of the skills expected to be most in demand in the years ahead are managerial and people skills. A total of 73% see an increasing need for resilience, flexibility and agility, 77% expect more call for creative thinking, and 70% expect skills in leadership and social influence to be in higher demand – all above the global average.

"Talent is attracted to the most attractive jobs, which is why improving the quality of the employee offering will be crucial for companies in Latin America and the Caribbean"

This trend is even more pronounced in Argentina, with the rise in demand for creative thinking expected to far outweigh the worldwide average. Other soft skills are already soaring in demand, most notably leadership and social influence.

“The Future of Jobs Report shows a clear need to boost investment, primarily in human capital,” say Martín Calveira and Eduardo Fracchia of Argentina’s IAE Business School at Universidad Austral, which has been a survey partner for the report since 2020. “Technological trends are the main drivers of employment and the main skills that workers are expected to develop cover the entire field of technology, as well as creative thinking, resilience and flexibility.”

Climate-related skills will create jobs

This mix of soft and hard skills also lends itself to the drive to cut emissions and increase climate mitigation, which around half of firms in Latin America and the Caribbean see transforming their business in 2025-30. One of the fastest-growing jobs in the region is sustainability specialist, with the number of roles expected to grow 29% by 2030.

In Colombia, renewable energy engineers are among the fastest-growing jobs, seen expanding by 22% in the next five years. This is followed by sustainability specialists, expected to grow by 21%.

In Mexico, Latin America’s second-largest oil producer, 69% of firms see rising demand for environmental-stewardship skills and 59% see cutting carbon as a key driver of organizational change (versus a global average of 47%). In the region’s biggest oil producer, Brazil, companies also see changes ahead due to the need to cut emissions (53%) and to adapt to climate change (49%, versus 41% globally).

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“There is increasing demand for specialists in data, AI, innovation and ESG, underscoring the need for companies to adapt to shifting job roles,” says Hugo Tadeu, Director and Professor at Brazilian business school Fundação Dom Cabral (FDC). “For companies to stay ahead, investing in training and development programmes will be crucial, ensuring employees are equipped with the skills to harness new technologies and drive productivity.

“Overall, the job market outlook in Brazil remains positive. Contrary to frequent concerns about automation replacing jobs, the data suggests a growing need for specialized labour. This reinforces the importance of continuous learning and workforce requalification to align with the demands of an evolving economy."

What’s next for Latin America and the Caribbean?

Talent is attracted to the most attractive jobs, which is why improving the quality of the employee offering will be crucial for companies in Latin America and the Caribbean as they look to draw people with in-demand skills into a rising number of technology-related positions.

In Argentina, 57% of businesses plan to redesign their salary and compensation strategy to support workers’ purchasing power, compared with 33% globally, while in Colombia, the focus is more on employee health and well-being, as well as on improving prospects for career progression.

Offering learning opportunities is another way of attracting and retaining staff, as highlighted by the World Economic Forum's Jobs Initiative, which engages businesses, governments and civil society across industries and geographies to promote good jobs for all.