Paraguay labor market shows skill gaps amid EU-Mercosur trade prospects

A study of major employers in Paraguay reveals a significant gap between university graduates and labor market demand. While thousands of students graduate annually in traditional fields like Administration and Accounting, the insertion rate into top-tier companies with high salaries is estimated at only 5%. In contrast, professionals in electronics, electricity, and new technologies face much higher demand, with the number of graduates in these technical engineering fields being significantly lower than the hiring needs of major corporations.

Simultaneously, a preliminary study by the International Labour Organization and the Paraguayan Industrial Union (UIP) is analyzing the potential impact of the EU-Mercosur agreement on Paraguay. The report identifies sectors with high growth and employment potential, such as metallurgy, plastics, and agro-industry. However, experts note that Paraguay faces structural challenges to fully benefit from the agreement, including a high rate of informality in the productive sector and the need for micro, small, and medium-sized enterprises (MSMEs) to meet international standards for global supply chains.