27 de April 2018
Bogota, the Latin American capital that creates most jobs with new foreign direct investment
- The city generates an average of 12,000 jobs per year by way of new foreign direct investment projects.
- The Bogota workforce exceeds that of Santiago and Quito together.
- FDI inflows to the city have contributed to increasing the number of employees.
Bogota, D.C., April 27, 2018 (IB / SDDE) - According to estimates made by Invest in Bogota’s Research and Market Intelligence area, Bogota was the Latin American capital that generated most employment derived from greenfield foreign investment in 2017. the Colombian capital has a share of 2.2%, followed by Mexico City and Sao Paulo.
"In 2017 14,082 jobs were created in Bogota through 155 non - extractive projects accounting for 64% of the projects and 47% of the amounts of investment that arrived in the country. The sectors in which these jobs were created were IT software and services (39%); consumer goods (14%); processed foods (12%) and communications (10%). It is estimated that in 2018 the creation of new jobs through new investment continued to grow in the city and will reach 14,300 jobs, 1.6% more than in 2017," says Juan Gabriel Perez, CEO of Invest in Bogota.
Analysis of the behavior of Latin America’s top 10 during the last five years highlights that Bogota was the second Latin American city in generating employment derived from greenfield foreign investment. With a share of 14% of the top 10, Bogota is surpassed by Mexico City (15%) and followed by Monterrey (12%), San Luis de Potosí (8%), Tijuana (8%), Querétaro (8%), Guadalajara (8%), Lima (7%) and Silao (7%). In the national context, the city also led the creation of jobs by greenfield foreign investment, with more than 60,000 jobs (52%). This translates into 12,000 new jobs per year and average compound annual job growth of 1.4%.
"We estimate that over the past 5 years, every project that has come to Bogota has generated more than 100 new jobs. The countries of origin of the investments that contributed most were the United States, with 11,263 jobs created (18.8%); Spain, with 9,866 jobs created (16.4%); Canada, with 4,440 jobs created (7.4%) and France with 3,878 jobs created (6.5%), which matches the behavior of FDI in Bogota and Invest in Bogota’s strategy of attracting foreign investment," notes Pérez.
Characterization of Bogota’s human resources and employment platform
In 2017, Bogota’s workforce was 4.6 million, more than Santiago and Quito (3.6 million and 0.9 million, respectively) put together.
"With a share of 57.2% of the total population, the economically active population of Bogota is made up of 52.7% men and 47.3% women. 40% of the workforce is between 29 and 45 (1,900,000), followed by the population over 46, with 30% (1.4 million people) and adults between 18 and 28 (1.3 million people)," explains Juan Miguel Durán, Secretary of Economic Development.
55% of Bogota's workforce has reached high school. People with higher education make up 30% of this work force, with about 1.4 million people. The educational level of Bogota in the latter group is divided into technical or technological education (39%), college (40%) and graduate (21%).
Thanks to the city’s educational offerings, the entire workforce with higher education has grown from 914,000 in 2007 to 1.4 million in 2017. The city graduates more than 141,000 people annually in 109 institutions of higher education, 2 of which are among the top 10 universities in Latin America.
FDI inflows to the city have contributed towards increasing the number of employees. Bogota has about 4.1 million employed persons, 53.1% of whom are men and 46.9% women. 60.4% of this group corresponds to employees, 31% to independent workers. "A stronger labor market compared to 2014 should be highlighted, on increasing the formal sector’s capacity to employ people in more favorable conditions for the worker. Other aspects to be emphasized are the increase in the average educational level of the workers and closing of gaps in the employment of women," explains Durán. "By sector, 28.5% of the employed work in commerce, followed by social and personal services with 22.9%. These two sectors correspond to the occupation of more than 2 million Bogotanos last year."