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Uruguay Human Capital Overview
Uruguay is a country that sits in the southern cone within Latin America. Compared with its neighboring countries, Uruguay has experienced more rapid economic growth than many others. Uruguay is home to many technological industries, such as fintech and other digital engineering solutions.
If you’re looking to outsource your technical business needs, Uruguay is a solid choice that deserves ample consideration. Here, you’ll find an overview of the human capital potential within Uruguay human capital.
Uruguay has poured considerable resources into spreading technology and expanding internet access for the region. Almost 100% of the country’s public education has internet access and guaranteed free laptops to students.
Each generation of young people to enter the workforce will have more of an innate understanding of computers and technology than the last. Eleven percent of all college students enroll in engineering programs.
The country’s workforce is highly skilled, highly educated, and highly capable. Public sector employment is roughly 80% unionized, giving the workforce a large amount of negotiating power regarding working conditions. The majority of the younger workforce works within the information, communication, and technology sectors.
Uruguay has five major sectors that make up its annual GDP:
- Exports / Imports: Uruguay exports goods such as wool, timber, grains, and beef. They have a unique import/export ratio that imports almost as much as they export to other countries.
- Tourism and Hospitality: Like most Latin American countries, Uruguay makes a significant amount of money through tourism. This industry employs a large portion of the population.
- Agriculture: Uruguay is a member of the Cairns Group, the world’s leading association of countries that create a lot of agricultural exports.
- Financial Service Industry: Despite a financial crisis in 2001, Uruguay remains a favorable place for banking due to its flexible financial laws.
- Information technology: Uruguay is home to a few startup tech companies that are labeled “unicorns” by Forbes; meaning they were valued above $1 billion before traded on the stock market.
Uruguay has put significant money and time into educating future populations, and the country expects to see a rise in the information technology sector.
The internet technology business sector is currently booming in Uruguay. GeneXus, an artificial intelligence developer, is located in Uruguay and has seen tremendous success within the country.
The co-founder of the company himself is quoted as saying, “the world of technology is looking at Latin America” (Forbes), indicating an expectation in the country’s technological leadership.
It is expected that business professionals should have some understanding of English. With that being said, however, it appears the majority of people within Uruguay human capital use Uruguayan Spanish as their primary language. Consider how this potential language barrier could affect your business needs when looking to outsource.
Wages in Uruguay human capital are paid in pesos. The average household income per month ranges between 50,000 pesos and 80,000 pesos, roughly $1200 USD to $1800 USD.
Here are a few large cities within Uruguay where you could easily establish business outsourcing opportunities:
- Montevideo: The biggest city within Uruguay, Montevideo, is known as a vibrant cultural city that serves as the chief financial and educational hub of the country.
- Ciudad De La Costa: This is the third-largest city in the country, but is often thought of as an extension of Montevideo. This city serves as an important commercial and tourist hub for Uruguay.
- Paysandú: This city is the center of the plantation forest industry for Uruguay and hosts many popular tourist attractions
Keep in mind that these cities, though modernized and well-populated, have some transportation infrastructure issues. Consider potential workforce transportation setbacks when looking at your outsourcing needs.
The turnover rate within Uruguay is dependent on the industry. As the tech industry in Uruguay booms and more IT professionals and engineers graduate college, however, competitive jobs can expect to attract and retain top talent.
SERVIAP is a leading Professional Employer Organization (PEO) ready to help your business expand operations throughout the Western Hemisphere. PEO is a model of co-employment, where we assume total responsibility for your talent, allowing you to focus on the strategic activities of your organization. Contact us today to learn more about how you can expand your business in Uruguay.