Mexico’s Talent Gaps Threaten Nearshoring, Industry Growth

As nearshoring intensifies across North America, Mexico has emerged as a prime destination for US companies seeking to reduce tariff exposure, cut costs, and stabilize supply chains. But while geographical proximity, trade agreements, and lower labor costs position Mexico favorably, a growing shortage of specialized talent is complicating its ability to meet rising industrial demand.

Nearshoring is accelerating in response to global disruptions and economic uncertainty. In 2024, foreign direct investment (FDI) in Mexico surpassed US$36 billion, driven by sectors such as manufacturing, finance, logistics and retail, explained Gabriel Aparicio, Country Manager, Kelly Services, for MBN. But as factories expand and service centers multiply, companies are confronting a structural challenge: finding, training, and retaining the specialized workforce required to support industrialization at scale.

“Mexico presents a paradox in talent development,” said Aparicio. “While we have a demographic advantage, with 2 million young workers entering the labor force every year over the next five years, nearly 50% do not have the adequate skills for today’s jobs.”

This skill mismatch is particularly acute in technical and engineering roles, which are essential to operating high-efficiency production environments. According to ManpowerGroup, Mexico is on track to face a 77% deficit in IT talent by 2025, exceeding the national average for all industries. Shortages in AI, data analytics, automation, and software development are limiting companies' ability to integrate advanced technologies into their nearshored operations.

EY estimates that only 1,100 professionals nationwide meet advanced specialization criteria in AI and analytics, which represents less than 10% of the 10,900 practitioners with two or more years of experience. To meet demand by 2028, this number would need to increase sevenfold. “AI is not a magic wand, but it can be a competitive advantage if companies invest appropriately in talent, processes, and data,” said Jaume Sués Caula, Representative, EY, as MBN writes. 

Geographical concentration further restricts access to talent. Most specialists are located in Mexico City, Guadalajara, Monterrey, and Queretaro, leaving industrial corridors in northern and central states underserved. As US firms expand operations in states such as Chihuahua, Baja California and Coahuila, competition for skilled workers is intensifying, driving wage inflation and widening regional disparities.

Technology adoption also reshapes workforce demands, writes MBN. Coursera reports 94% of Mexican employers prefer candidates with generative AI credentials, while demand grows for skills in AI integration and hybrid technical roles. Yet many professionals lack confidence using these tools effectively, underscoring the need for reskilling.

Microcredentials have emerged as a promising approach to bridging the skills gap and embracing technology. According to Coursera’s 2025 report, 84% of Mexican employers already hire candidates with microcredentials, citing reduced training costs and faster onboarding. “Microcredentials provide verifiable skills without waiting for traditional degrees,” said Anabella Laya, CEO of Acreditta.

Recent reforms add one more element of disruption to the labor market. The 2021 labor reform aimed at eliminating abusive subcontracting practices, for example, has had unintended consequences. “This generalization has created a climate of fear and misinformation,” said Aparicio. “It is critical to distinguish between what is legally prohibited and what remains both viable and valuable under the law.” Another example is the recent 40-hour workweek proposal currently being discussed in Congress. While office work can be adapted, industrial activity cannot be stopped at a moment’s notice, which makes technology adoption crucial. “Strategies must be tailored to sector realities,” Velázquez said. “For high-throughput environments like automotive manufacturing, automation is not just a tool; it is a lifeline.”

“The real threat is not AI replacing jobs but professionals who fail to adapt being displaced by those who embrace it,” said Emmanuel Olvera, CEO and Founder, Hireline, as he explained that AI tools, especially code generation assistants, are transforming workflows, enabling developers to work more efficiently and focus on higher-level problem-solving. Olvers used YC data to show that 95% of startup projects now integrate AI in code development, shifting demand toward professionals who can collaborate with AI, interpret data, and lead strategic implementation.

As nearshoring evolves, companies are refining talent acquisition strategies. Hybrid models, combining building internal talent, buying expertise, and borrowing contingent workers, are becoming the norm. “The smartest companies are not choosing between reshoring or offshoring,” Velázquez said. “They build hybrid strategies: reshoring core functions, and nearshoring remote and knowledge-based roles.”

“Success requires a blended model that adapts to labor market challenges and the global talent shortage,” Aparicio said. Remote staffing strategies are gaining traction as companies seek flexible, cost-effective access to qualified professionals without the burden of establishing local entities. “Companies benefit from better wages and access to global projects, while professionals gain stability and compliance support,” Hernández said. “It is a win-win.”

Follow our MBS 2025 tag and do not miss our coverage leading to Mexico Business Summit 2025 on October 28–29, 2025. On Thursday, July 17, 2025, we will delve more into the new skills that manufacturing activities require as technology adoption advances. 

Interested in staying ahead in the nearshoring landscape? Mexico Business Summit 2025 offers exclusive insights from leading industry experts and government officials on the key trends, risks, and opportunities fueling Mexico’s emergence as a global nearshoring powerhouse. Discover how supply chain innovations, workforce development, and sustainability strategies can strengthen your competitive edge.

Register now to secure your place and position your business at the forefront of this dynamic market: https://mexicobusiness.events/MBS/2025