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.
In the last year, Costa Rica significantly improved its level of English language proficiency, while the rest of Central America made no significant progress.
The global English language company Education First published its 2018 report, which defines five levels of language proficiency in 88 countries around the world by calculating an index called "English Proficiency Index". In the world ranking, Costa Rica was placed 36th, Guatemala 55th, Panama 56th, Honduras 69th, El Salvador 70th and Nicaragua 72nd.
It is estimated that between 2015 and 2020, Panama will need to hire around 68,000 employees with technical specialties, and the logistics sector will be the leader in the demand.
According to a labor market study carried out by the Ministry of Labor and Labor Development (Mitradel), estimates for from demand companiesfor technical personnel is high, with the logistics, industry, tourism, agriculture and construction sectors being those that most need staff with these capabilities.
According to Education First's English Proficiency Index, Costa Rica and El Salvador have not been able to raise their level of proficiency in the last five years, while Panama and Guatemala, which in 2014 and 2015 did improve their performance, fell in 2016 to the "Very low" level.
The index published each year by Global Education First defines three levels of language proficiency in 72 countries around the world.In the world rankings, Costa Rica,Guatemala, Panama and El Salvador ranked 38, 53, 50 and 63, respectively.
Between 300 thousand and 500 thousand professionals in different areas are estimated to be needed in order to cover the jobs that could be generated in the next ten years.
Panama's economic growth potential can not be fully developed if the necessary conditions are not developed, one of which is the quality of the labor supply.
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.
Ibex Global Solutions has announced an investment of $4 million in a customer service, collections and back office center, to service its operations in Latin America.
Its geographical proximity to the United States was one of the reasons why the company Ibex Global Solutions decided to set up its regional headquarters in Managua. With an investment of $4 million, the company has opened its service center, where 500 agents will work providing services in English and Spanish and 250 in Spanish only.
According to the English Proficiency Index produced by Education First, Guatemala and Panama have improved, moving from the "very low" group to the "low" group, while Costa Rica and El Salvador remain stagnant at that level.
The index, which the global English teaching business Education First publishes annually, defines three levels of proficiency in 70 countries worldwide. In the world rankings, Costa Rica, Guatemala, Panama and El Salvador were located in the 43rd, 46th, 48th and 61st positions, respectively.
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.
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. "
Companies are struggling to find employees with skills in information technology, programming and networking, electricity, processing and assembly of medical parts.
The Talent Shortage study (2014) by Manpower notes that "... 51% of the 620 Costa Rican employers surveyed said they can not find suitable professionals to perform the tasks required by their company." The main cause, according to the contractors, is lack of technical skills.
The unemployment rate now reaches 10% in a population where 60% of workers have not completed high school, but teachers refuse to be evaluated on their ability in subjects they teach.
EDITORIAL
An article in Nacion.com cites statements by Victor Morales, Minister of Labour, on the rising unemployment levels in Costa Rica: "...There is a mismatch between supply and demand in the corporate sector. There is a demand for skilled technicians; but most of the Costa Rican labor force is unskilled. 60% have not finished high school; it is a national drama. "
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.
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.
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. The plan by Minister Alexander Mora is to promote the attraction of investment in these areas offering the benefits of a free trade area linked to access to skilled labor.
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