What is the workforce in Nicaragua like?
- 16 July 2021
In Nicaragua, the workforce is young and dynamic, known for its flexibility and high productivity.
Nicaragua has various characteristics and benefits that have made it one of the most attractive countries in the region for foreign investment; among which stand out its stable and growing economy, its high levels of citizen security, its fast-developing infrastructure, and its attractive tax incentives. Among these elements, one of the most important and relevant factors that make Nicaragua an ideal place to invest is its workforce.
The workforce is defined by the total number of people, both employed and unemployed, who are available for labor and productive activities in a country; that is, the total available labor force in the country. Likewise, the workforce constitutes one of the most important assets that a nation can have, due to the importance and direct influence that this factor has on the economic development of a country.
In Nicaragua, the workforce is young and dynamic, known for its flexibility and high productivity, with good work habits, a great capacity for fast learning, and low absenteeism and turnover rates. This represents a very positive competitive advantage for the country, highlighting some indicators, such as:
- 74% of the population is under 40 years of age
- 4.1 million people in the workforce in 2020
- 21,200 new professionals in 2020
- 723,000 formal jobs (2020 average)
In demographic terms, Nicaragua’s population is characterized by its youth. According to statistics from the National Institute of Development Information (INIDE, for its acronym in Spanish), it is estimated that Nicaragua has a total population of approximately 6.5 million people, of which 61 percent of this population is in the age range between 15 to 60 years, who in turn make up the population of working age. Having a high percentage of working age population represents a window of opportunity for greater economic growth and a reduction in poverty through the demographic bonus.
Likewise, it is important to highlight the level of education present in the Nicaraguan workforce. The National Council of Universities (CNU, for its acronym in Spanish) has estimated a total enrollment of over 125,664 students in the different higher education institutions. Additionally, the results of a study carried out by PRONicaragua about the English-speaking population showed that in 2016 there were almost 22,558 students learning English in public and private language centers, which proves a high interest in learning an additional language.
The competitiveness of Nicaragua's human capital is also highly valued by investors established in the country. David Slick, President of Command Medical, highlighted the important role that the Nicaraguan workforce plays in the success of companies, recognizing education as a key factor when choosing a new investment destination: “People in this country are well educated, everyone who works in the factory has at least a bachelor's degree; they are productive and have great ability and desire to learn new things.” Likewise, Henry Ordonez, Vice President of Operations at IBEX, highlights that: “Nicaragua has great competitive advantages for the sector, such as accessibility to a highly educated bilingual workforce.”
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