Latin America Strong at Attracting Talent, Weak in Developing and Retaining It, Report Finds

Latin America performs comparatively well in attracting talent thanks to cultural openness and targeted incentives in specific sectors — but continues to struggle in developing and retaining that talent once it arrives, according to the Global Talent Competitiveness Index (GTCI) 2025 from the INSEAD Business School and the Portulans Institute.

The report ranks countries on their ability to attract, grow and keep skilled workers, and to build economies that can transform those skills into innovation.

While the region shows progress in expanding education access and drawing international professionals, the study concludes that Latin America "lags behind most other regions" in converting talent into long-term competitiveness.

Chile leads regional rankings, followed by Costa Rica and Uruguay. But even top performers face persistent gaps in productivity and innovation ecosystems, the report finds. Limited investment in research and development, skill mismatches, and inequality continue to hinder upward mobility and professional growth.

"These economies face a dual challenge: ensuring universal access to foundational education while accelerating the production of talent suited for future industries," the report states.

Major economies such as Brazil, Mexico and Colombia place in the middle range — supported by market size and improving education enrollment — yet remain short on advanced technical skills, especially in fields related to digital transformation, climate transition and health technology.

Retention is an even greater obstacle. The report cites brain drain, weak labor market stability and limited high-value opportunities as key reasons skilled workers leave the region. This gap between attraction and retention "poses growing risks for future innovation," the study notes.

Caribbean countries show mixed results. Barbados and Trinidad and Tobago benefit from strong institutions and specialized vocational strengths, but smaller island economies lack the scale to expand talent pipelines fast enough to meet demand.

The GTCI highlights regional shortages across STEM careers, health care, advanced manufacturing and AI-related roles, with private sector demand outpacing worker preparation. Without deeper collaboration between governments and industry, the report cautions, Latin America could fall further behind regions like East Asia and Western Europe in high-growth sectors.

"Talent competitiveness is becoming increasingly central to economic stability," the report concludes, urging investment in upskilling, digital inclusion and innovation infrastructure to prevent continued loss of skilled workers.

Despite strong appeal to global talent, the study suggests Latin America must focus on developing and keeping its own people if it wants to compete in the global economy.