Creating a labor market that works for everyone

A few years ago, we started a comprehensive path towards understanding the labor demand, seeking to know first-hand the specific talent needs that companies require. In this context, the mission of Advice Data Analytics, the division specialized in labor market data of our consulting firm, is to provide high-value information to contribute to the development of the world of work and the economy as a whole. This commitment ranges from data collection to the elaboration of reliable and practical indicators for strategic decision making, as well as the publication of reports offering unique perspectives on the various issues related to the labor market.

We recognize that this is a complex challenge. The data we collect reflects the current dynamism of the world of work, and it is essentially in that dynamism that much of its value lies. Constantly monitoring the labor market, updating job and skills dictionaries with high accuracy to represent emerging changes in the country, decoding the DNA of the labor market, and knowing precisely the unique combination of knowledge, skills and experience required by employers for each position are essential and challenging.

We face an ever-changing marketplace, where traditional discussions of jobs created and destroyed do not capture part of the reality. Jobs don't just disappear; they evolve. For most workers, their roles are more likely to evolve into something new than disappear altogether. Day by day, skill by skill, the basic building blocks of a job are reconfigured, resulting in roles that look different than they did a few years ago, even though the job title and the worker in the job may remain the same. This transformation is evident in areas such as technology, marketing, human resource management and sales, among others.

And, as if that weren't enough, skills change takes center stage. Digital skills in non-digital occupations. The growth of digital skills is not limited to jobs in information technology. Increasingly, roles in a variety of industries demand fluency and technical skills. These skills include data analysis, digital marketing, networking and digital skills in manufacturing. And soft skills in digital occupations. These technical jobs now demand a balance of soft skills as well, as teams become more connected and collaborative.

The persistent asynchrony in the relationship between labor market, education and regulation is a fundamental challenge for the development of society. Vocational education and training must be aligned with the needs of the labor market, requiring close collaboration between vocational education providers and employers. It is essential that individuals acquire the right training for the jobs that companies demand. In addition, public policies should focus on improving the relevance and outcomes of education in the labor market, while regulation ensures fair working conditions and prevents labor disputes. Although this interaction is still ongoing, we see tremendous opportunities to leverage synapses at greater speed and frequency.

The periodic updating of the profiles sought by companies with new information from the labor market is essential to visualize where the most advanced organizations are heading. The structural transformation manifests itself in significant changes in the skills requested, according to a comprehensive analysis of job offers in Uruguay from 2017 to 2023 conducted by Advice. There is a clear trend towards specialization. Knowing what profiles are being hired in specific sectors, what level of training and experience are required, what knowledge and skills are in high demand, and what remuneration and benefits are offered, provides key inputs for organizational development and understanding of the competitive environment.

Finally, encouraging personal assessment is crucial in an ever-changing marketplace. Comparing an individual résumé with the candidate profile employers are seeking for a given position, based on labor demand data, provides an initial perspective of each person's strengths and areas for improvement. This allows efforts to be directed to fill identified gaps and improve employability. Doing so on a regular basis becomes essential in a fast-moving market.

With all this going on in parallel, the question is, "how do we create a labor market that works for everyone?