Peru companies struggle to find skilled workers

Global Business

Latin America has the widest skills gap in the world according to a report by the Organization for Economic Cooperation and Development. Topping the list of countries is Peru. CCTV’s Dan Collyns reported from Lima.

Peru companies struggle to find skilled workers

Peru companies struggle to find skilled workers

Latin America has the widest gap in the world between the skills required by its economies and the skills offered by its schools and universities, according to a report by the Organization for Economic Cooperation and Development. Topping the list of countries is Peru. CCTV’s Dan Collyns reported from Lima.

Peru’s rapid economic growth over the last decade hasn’t eased the demands on those entering the job market. Many are forced to work in the black market because they don’t have the necessary skills to compete. In Latin America the problem in recruiting is that its schools and universities aren’t educating students to meet the level of skill required by its growing number of companies.

As Peru’s economy strengthens, its labor market has changed. Supply isn’t meeting the demand for technicians who can work in up and coming industries. According to one study, one third of the employers in Peru use foreigners to fill jobs.

More than 90 percent of the students who graduate from Peru’s main industrial training school are told they have a guaranteed job. The institute has more than 70,000 students and maintains a retraining program that helps around 400,000 workers across the country, but it’s not enough.

Apart from the technology industry, sectors like agriculture, mining and construction in Peru are also short on skilled workers.

Peru boosted its budget for education, but it still maintains one of the lowest education budgets in the region. Last year, the country invested fewer than three percent of its gross domestic product in education.

Educators say Peru needs to take decisive action in helping those first entering the labor market if the country wants to maintain a competitive stake in the global economy.