Changing the model of progress by betting on more complex and higher value-added activities, without restricting the entry of qualified foreign labor, is part of what the Panamanian business sector proposes to boost long-term economic growth.
In a statement, the Chamber of Commerce, Industry and Agriculture of Panama (CCIAP) reflects on the need to make significant adjustments in the country's productive matrix to achieve long-term sustainable economic development.
There is still a shortage of workers with the skills and technical training needed to work in several sectors, ranging from agriculture to telecommunications.
Workers with skills to not only operate but also repair specialized farm machinery, and even to train people in the operation of specialized software are what companies have been unable to find in different sectors in Nicaragua.Despite efforts, some even made byvarious private companies, to fund studies and train their employeesso that they can acquire the necessary skills, there remains a significant gap between labor supply and demand in the country.
The number of jobs in call center companies fell by 37% between 2012 and 2016, due to the difficulty in finding skilled labor for this activity.
Limited supply of staff with the skills needed to work in a call center and higher wage demands on the part of those who do meet the requirements are some of the reasons behind the reduction in activity in the call center industry in Panama over the last five years.In 2012, 12.643 employees were registered in call center companies, while last year the figure was reduced to 7,900, according to data from the National Authority of Public Services published by Prensa.com.
Seven out of ten entrepreneurs in Costa Rica would be willing to implement training programs for young people in the academic-work placement format.
A statement from the Costa Rican Union of Chambers and Associations of Private Enterprises (UCCAEP) notes that"...72% of employers would be interested in launching training programs under the dual mode and 83% said they already have accepted into their businesses students or trainees for internships or professional work experience."
More workers who speak a second language are needed in order to continue growing in terms of attracting investment.
The arrival of international companies engaged in outsourcing services shows an upward trend in Nicaragua, but the main obstacle to greater growth is the lack of potential employees who speak and write two languages.
Cities far away from the capital which have free zone regimes, labor and are close to ports, are becoming attractive places for businesses.
The characteristics of the so-called "emerging cities" outside of the greater metropolitan area, are mainly being exploited by multinational companies who want to operate under free zone schemes and near port terminals and areas with good road access.
The private sector claims that it is not enough to invest $10 million in the construction of a technical school if the academic programs are not developed considering the staffing needs of the productive sectors.
The problem of a shortage of technically skilled labor in Panamanian companies will not be resolved if educational programs do not take as a starting point the demands of the productive sector.
Panama's improvement in the availability index of skilled labor, does not respond to an increase in supply, but to a drop in demand because of a slowdown in the economy.
An article on Panamaamerica.com.pa details the results obtained from the Talent Shortage Survey conducted by Manpower, noting that "... Panama has reduced its deficit of talent and skilled labor by 12 percentage points during the last year, going from 58% to 46%, however, the causes are not so encouraging, since the reduction is due to a decrease in the search for personnel by companies. "
Projections are that for the five year period between 2015-2020 there will be a shortfall of 70,000 workers in the sectors of construction, logistics, tourism and agriculture.
According to the National Competitiveness Center, in the specified period there will be a shortage of workers especially in the logistics sector, where they will need at least 35,000 technicians, ie 49.5%, while in the construction area demand will be for around 28,000 people, representing 40.3%. In the case of the tourism sector it is estimated that it will require approximately 4,113 technicians, ie 5.7% and in agriculture about 3,203, the remaining 4.5%.
The special tax regime for multinationals which have an established site in Panama remains the main factor, while the low supply of trained personnel has been identified as a serious problem.
In addition to tax incentives offered to companies that set up offices, there are also special areas such as Panama Pacific and the Colon Free Zone, whose special schemes offer other incentives for companies to set up there.
According to Education First's English Proficiency Index, in Costa Rica the English level is low, while in Guatemala, Panama and El Salvador it is very low.
Out of the 63 countries surveyed in the English Proficiency Index (EF EPI), Costa Rica ranks 43, Guatemala is No. 51, followed by Panama in position 52 and El Salvador in 53.
The difficulties faced by companies in hiring high-profile executives are driving growth in the recruitment market in the country.
With the advent of more multinational companies in the sectors of logistics, banking and insurance, there is growing demand for qualified personnel to fill positions of managers, vice presidents or directors.
Companies recognize how important managing a growing international and mobile workforce is for the future of their businesses, but they do not know how to do it.
Companies do not have an appropriate strategy to deal with the transformation that is happening the way of working in the world -from the convergence of five generations to operations spread across the planet- which will lead to a crisis in management, attraction and retention of talent, concludes the Workforce 2020 study, prepared by Oxford Economics and SAP.
Investments by Costa Rican companies in their neighboring country went from $2.43 million in 2010 to $67.7 million in 2013.
Installation of production facilities, maquila subcontracts or transfer of part of the production process are part of the investment models that Costa Rican businessmen are utilizing in order to minimize the negative effects of the high production costs prevalent in Costa Rica and to stay competitive at the level international.
In Costa Rica a proposal has been made to implement free zone regimes linked to universities with internship programs in companies.
The Ministry of Foreign Trade of Costa Rica plans to implement free zone models in Guanacaste linked to universities such as the Earth and Invenio Universities, both located in areas which are far away from the greater metropolitan area.