Situated at the heart of the continent, Paraguay arguably has one of the most privileged geographical positions in South America. It borders Brazil, Argentina, and Bolivia, and it’s very close to Uruguay, which makes it a bridge between larger economies. Paraguay’s economy has been prone to erratic peaks and troughs over the years, but shows a general tendency towards modest growth. While Paraguay’s GDP doesn’t grow at a high rate, it also doesn’t dip drastically, which helps blunt the severity of an economic crisis, like the one brought on by the COVID-19 pandemic. Hiring trends in Paraguay are shaped by these factors.
Foreign investors and companies can take comfort in the idea that hiring trends in Paraguay are looking good, and that the future holds promise. Economists predict that the Paraguayan economy will grow at a steady pace over the coming years.
Four factors contributing to the growth of Hiring Trends in Paraguay
- Increase in formal employment
- Opportunity for foreign investors to fill a business vacuum
- High demand for IT/tech related jobs
- High level of English proficiency
Below is a look at some of the reasons why you should consider hiring trends in Paraguay:
1. Increase in formal employment
Paraguay’s economy is still dominated by the informal economy (street vendors, trinket sellers, and the like). Most citizens work like this every day so they can scrape together just enough to survive. Around 64 percent of the population doesn’t have a formal job that contributes to social security or taxes. However, this has started to change in the last few years, as the formal sector continues to grow with each passing day. Between 2008 and 2015, 300,000 formal jobs were added to the economy, compared with an increase of 144,000 informal jobs.
2. Immense opportunity for foreign investors
Not many Paraguayans work for large national companies, much less foreign ones. A study by the International Labor Organization revealed that only 5 percent of salaried employees in Paraguay work for a company larger than 50 people. The country nonetheless boasts a large, educated labor pool with no shortage of talent. And since there are few large companies in Paraguay, small to medium-sized enterprises (SMEs) that incorporate there have a better chance of cornering the market in their respective industry and will have the best workers in the country to choose from.
3. High demand in IT/tech related jobs
Currently the biggest employer in Paraguay is the agricultural sector. But in urban areas, the most sought-after positions are in the tech sector – jobs such as software developers, programmers, full-stack developers and engineers, etc. – so much so that demand outpaces supply. Foreign companies that set up shop in Asunción, the capital of Paraguay, should have no problem finding tech talent. The hiring trends in Paraguay in the tech sector are similar to outsourcing in Bogota.
4. High English proficiency level
The hiring trends in Paraguay have also been positively influenced by the fact that many people in the country possess some level of English proficiency. Paraguay ranks third in South America in terms of English proficiency, above important countries like Chile and Uruguay.
Hiring trends in Paraguay: What do I need to know before incorporating there?
Before incorporating in any country, it’s important to be familiar with the employment laws, the rights, and the duties you’ll have as an employer in Paraguay, and the work culture that comes with moving to a new country.
According to employment law in Paraguay, a standard working week is 48 hours long for daytime work and 42 hours per week for nighttime work. This means that each working day should be eight hours long, while a working night should be seven hours long, with each employee resting at least one day a week. Any additional hours are considered extra, and should be paid in proportion to the employee’s standard rate of pay plus an addition based on the extra hours worked. Extra hours on a holiday are paid double.
After a year of work with the same employer, the worker is legally entitled to a 12-day paid vacation. After five years, it’s 18 days’ paid vacation per year, and after 10 years it becomes 30 days. As with all Latin American countries, Paraguay is generous with public holidays. They are as follows:
- January 1st: New Year’s Day
- March 1st: Heroes’ Day
- April 14: Maundy Thursday
- April 15: Good Friday
- May 1st: Workers’ Day
- May 15: Independence Day
- June 12: Chaco Armistice
- August 15: Founding of Asunción
- September 29: Boqueron Battle Victory Day
- December 8: Virgin of Caacupe Day
- December 25: Christmas Day
Biz Latin Hub can help you with hiring trends in Paraguay
At Biz Latin Hub, we provide integrated market entry and back-office services throughout Latin America and the Caribbean, with offices in Bogota and Cartagena, as well as over a dozen other major cities in the region. We also have trusted partners in many other markets.
Our unrivaled reach means we are ideally placed to support multi-jurisdiction market entries and cross border operations.
As well as knowledge about hiring trends in Paraguay, our portfolio of services includes hiring & PEO accounting & taxation, company formation, bank account opening, and corporate legal services.
Contact us today to find out more about how we can assist you in finding top talent, or otherwise do business in Latin America and the Caribbean.