Uruguay’s Global Services Hiring Stalls as Costs Rise, Automation Bites

Employment growth in Uruguay’s global services sector has stalled, according to a new study by consulting firm Advice, which points to rising costs and automation pressures as key headwinds.

The report, based on labor demand data from global service companies operating in the country, shows declining hiring needs across segments such as call centers, software design, and testing. Advice analyzed the sector’s trajectory, the drivers behind the slowdown, and areas likely to see future growth.

Uruguay’s global services industry employs more than 34,000 people across roughly 660 companies. It accounts for 58% of the country’s service exports and contributes about 5% to GDP.

Hiring demand surged between 2020 and 2022, increasing sixfold to peak at around 3,000 positions in 2022. The spike was driven by the COVID-19 pandemic, which boosted global demand for IT services and accelerated digitalization, prompting companies to relocate operations and expand remote hiring.

However, momentum weakened from 2023 onward. Job demand fell 17.7% in 2023 and has since plateaued, averaging about 2,553 vacancies annually between 2023 and 2025.

This trend contrasts with Uruguay’s broader labor market, which expanded during 2024–2025. In the 12 months through February, demand in global services remained flat with a slight downward bias.

Segment-wise, hiring dropped sharply in 2025: call center roles declined 27.1%, software design (UI/UX) fell 25%, software testing and quality assurance dropped 13.3%, and other remote cross-functional roles slipped 6.9%.

By contrast, some functions showed resilience. Technical support, human resources (including payroll and recruitment), and logistics roles recorded growth. Notably, demand for data science and AI specialists jumped 70.1%, highlighting a shift toward higher-value, tech-driven roles.

Advice attributes the stagnation largely to declining cost competitiveness. Uruguay has become more expensive relative to major global economies, with the Central Bank’s extra-regional competitiveness indicator hitting its lowest level in January 2026 since records began in 2000.

The report also notes that the early-decade hiring boom coincided with a stronger US dollar, which made Uruguayan talent more affordable for international firms. Since 2022, however, wages have risen significantly in dollar terms, reaching peak levels in 2026 and further dampening hiring appetite.