Mexico's Labor Market Shifts Toward Tech Specialization

The Mexican labor market has undergone substantial changes in sectors such as e-commerce, fintech, and information technology, driven mainly by digitization and the adoption of emerging technologies. These changes follow global trends that are reshaping the labor market, with the fastest-growing roles relative to their size being related to technology, digitalization, and sustainability, according to the World Economic Forum.

"Between now and 2027, around 23% of jobs worldwide are expected to change, creating 69 million new profiles in emerging professions and eliminating 83 million obsolete jobs," says the World Economic Forum within the Future Jobs Report 2023.

The labor market has shown a clear shift toward technological specialization, with a growing need for professionals in areas such as software development, AI, cybersecurity and automation, among other emerging positions.

The Mexican Association of the Information Technology Industry (AMITI) points out that the Mexican technology sector has generated over 100,000 direct jobs in the country, with a sustained annual growth of between 5% and 7%. This growth has been driven by sectors such as fintech and e-commerce, which require highly skilled talent in emerging technologies.

"The pandemic increased the demand for Information Technology (ICT) profiles due to accelerated digitalization, but with the outsourcing reform, there was a shift from outsourcing specialized talent to direct demands for specific profiles," says Sonia Durán, Human Capital Manager, ECOSISTEMAS MX.

The outsourcing reform, which prohibits the outsourcing of personnel in certain circumstances and limits outsourcing to specialized services, also has a significant impact on the labor market. This reform has forced companies to adjust their recruitment strategies, eliminating the practice of outsourcing specialized talent and favoring the direct hiring of highly skilled professionals.

However, this change, according to Informa BTL, has increased competition for the most in-demand profiles, which has generated a more competitive labor market within ICT.

"Companies are increasingly demanding higher qualifications from their workers. As a consequence, Bachelor's and Master's degrees will become a prerequisite for access to new university professions, and constant learning will be an imperative for employees," reads an article by The University on the Internet on the subject.

Challenges and Outlook 

This competition for talent faces the problem of a limited supply in the face of growing demand for specialized profiles. Durán says that this problem has forced many organizations to review their recruitment models and to offer more attractive incentives to retain the professionals they manage to attract.

Companies operating in the ICT sector are also adopting strategies to retain their staff, such as flexible working schemes, health benefits, and continuous training programmers. According to Durán, these initiatives are key to reducing staff turnover in a sector with an average turnover rate of 30%.

The growth of the ICT market in Mexico is also reflected in the transformation of professional profiles. According to AMITI, it is estimated that up to 65% of the profiles required in the coming years could be transformed due to the advance of AI and other disruptive technologies, highlighting the need for companies to implement training strategies and adapt to the new requirements of the labor market.