Post-Pandemic Nearshoring Could Benefit Mexican WorkersBy Cinthya Alaniz Salazar | Thu, 10/21/2021 - 15:40
US citizens are leaving the workforce in droves, now totaling 4.3 million as of August, reports the US Bureau of Labor Statistics. As companies struggle to fill these positions, highly impacted sectors like tech may begin to recourse to nearshoring, representing an opportunity for Mexican talent.
The move would not be unprecedented, when the COVID-19 pandemic compelled the global economy to accelerate and shorten digitalization efforts from years to months, US companies referred to highly qualified Mexican talent that offered them competitive labor costs and logistical advantages. Quantitatively, demand from US tech giants drove a 1,000 percent increase in demand for IT profiles from 2019 to 2020 according to EmpleosTI, a job search site specializing in ICT.
Almost two years later, on top of a preexisting deficit of qualified talent at home, US Tech companies are now faced with dramatic turnover rates, which increased by 4.5 percent according to the Harvard Business Review. This sharp increase may be consequence of an increased workload needed to keep pace with the digitalization push demanded by the pandemic, which in the end burned them out.
However, for an industry sector that is projected to grow an additional 13 percent from 2020 to 2030 (equivalent to an additional 667,600 jobs according to US BLS), this observed phenomenon will prove to be a challenge. Furthermore, this demand is bound to be compounded by Mexico’s own economy, which observed 76 percent of companies increase their strategic focus and digital investment. Meanwhile, almost 90 percent of companies still need to undergo an important business and technological transformation, according to an evaluation report authored by Schneider Electric and Oxford Business Group (OBG).
Since Mexican citizens have not been able to rely on any federal assistance, US tech companies will find an eager talent pool. However, now that Mexico has recognized the value of digital tools and accessibility, US companies should anticipate costs to increase as they begin to compete for talent. At least in the medium-run, Mexican talent stands to benefit from growing demand, which they will continue to enjoy until the US market is able to produce more talent.