06 de May 2019
Bogota tops the Latin American ranking in jobs created by foreign investment
Between 2016 and 2018, new foreign direct investment and expansions created 23,112 jobs in the Colombian capital, rising above cities such as Mexico City, Lima, Sao Paulo, and Buenos Aires. Most of the new jobs are found in sectors such as construction, business services, consumer products, textiles, and software.
New Foreign Direct Investment (FDI) and expansions created more than 830,000 jobs in Latin America in 2016-2018. According to figures from the fDi Markets platform of the Financial Times, Bogota was the city in the region with the largest number of jobs created by foreign investment.
According to an analysis by the Research and Market Intelligence team of Invest in Bogota, FDI had a positive impact on the city thanks to the creation of more than 23,000 jobs, well above capitals such as Mexico City, Lima, Sao Paulo, Buenos Aires, and Guadalajara.
10,060 new jobs were created in Bogota in 2018 alone, an 81% increase with respect to the same period in 2017, which is proof of the potential of FDI to stimulate the region’s labor market. The Colombian capital placed above other large cities such as Lima (47%) and Sao Paulo (37%).
Jobs created by Greenfield FDI in 2016-2018 Latin American cities
Source: Invest in Bogota, based on information from the fDi Markets platform of the Financial Times.
In the national context, Bogota also accounted for the largest number of new jobs associated with FDI. Out of every ten jobs created by foreign investment in Colombia in the last three years, three of them were created in the capital.
The countries that added the largest number of new jobs to Bogota’s economy were Spain (19.8%), Chile (16.9%), the United States (15.3%) and France (7.5%). Together, they account for about 60% of the jobs created in Bogota during the period.
Sectors that gained the most
“The majority of the jobs created over the last three years in the capital are found in the services and construction sectors as a result of the dynamic conditions of the economy, which is trending towards specialization in value-added services, the extensive development of infrastructure and urban renewal projects, and the quality and skills of the city’s workforce,” said Juan Gabriel Pérez, Executive Director of Invest in Bogota.
The analysis conducted by Invest in Bogota shows that the sectors that benefitted the most in terms of job creation were: construction (31.3%), business services (16%), consumer products (12.6%), textiles (7.9%) and software (5.6%). Bogota’s share was the highest in the country for all of these sectors, and for some of them, the highest in Latin America.
In construction, Bogota accounted for 12.2% of new jobs in Latin America, surpassing Lima (9.7%) and Medellín (6.9%), among other cities. Likewise, Bogota is the regional leader in job creation for the business services sector, with approximately 10% of the jobs created by new FDI projects in Latin America, above cities such as Sao Paulo (6.8%).
In terms of the challenges faced by the city to continue generating employment through foreign investment, Perez said that Bogota must continue "to make progress in its strategy to consolidate itself as an attractive investment destination in Asian countries with the purpose of adding more skilled jobs that involve a greater use of technology.”