Nearshore Americas

Hiring Devs Gets Much More Expensive in Mexico as Talent Shortage Bites

Hiring devs and other tech workers is getting increasingly expensive in Mexico, leaving 70% of companies operating in the country in a very tight spot.

Tech salaries in Mexico have jumped 42% over the past two years, according to a report from HR consulting firm ESSAD.

Although tech wages have been increasing rapidly in all of the Americas, growth in Mexico has outpaced the averages for the US (18%) and the whole region (36%).

Salaries for software devs rose 32% since 2018, reaching an average yearly salary of US$47,938 by 2023.

Such attractive salaries and the availability of remote working arrangements have not been enough to make up for high demand, however. A Manpower survey revealed that 68% of employers struggle to find the right talent.

The most in-demand profiles include data analysts, IT specialists and front-office experts, along with emerging roles like programmers and AI specialists.

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Mexico City has now surpassed São Paulo as Latin America’s largest tech hub. However, many new graduates lack skills in AI and big data; skills increasingly required by large companies.

Experts believe the talent shortage is due to limited skill development programs, uneven access to high-speed Internet and inadequate technology education in universities.

Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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