Hiring Trends in Paraguay?

Situated at the heart of the continent, Paraguay arguably has one of the most privileged geographical positions in South America. It borders Brazil, Argentina, and Bolivia, and it’s very close to Uruguay, which makes it a bridge between larger economies. Paraguay’s economy has been prone to erratic peaks and troughs over the years, but it shows a general tendency towards modest growth. While Paraguay’s GDP doesn’t grow at a high rate, it also doesn’t dip drastically, which helps blunt the severity of an economic crisis, like the one brought on by the COVID-19 pandemic which is one of many factors that shape hiring trends in Paraguay. Hiring trends in Paraguay are shaped by multiple factors.

Foreign investors and companies can take comfort in the idea that hiring trends in Paraguay are looking good, and that the future holds promise. Economists predict that the Paraguayan economy will grow at a steady pace over the coming years.

Read on to find out more about hiring trends in Paraguay.

A Biz Latin Hub infographic on 2023 Hiring trends in Paraguay
What are the Hiring trends in Paraguay?

The 4 factors that contributes to the growth of hiring trends in Paraguay are:

  1. Increase in formal employment
  2. Opportunity for foreign investors to fill a business vacuum
  3. High demand for IT/tech related jobs
  4. High level of English proficiency

Below are some of the reasons why you should consider hiring trends in Paraguay: 

1. Increase in formal employment

Paraguay’s economy is still dominated by the informal economy (street vendors, trinket sellers, and the like). Most citizens work like this every day so they can scrape together just enough to survive. Around 64 percent of the population doesn’t have a formal job that contributes to social security or taxes. However, this has started to change in the last few years, as the formal sector continues to grow with each passing day. Between 2008 and 2015, 300,000 formal jobs were added to the economy, compared with an increase of 144,000 informal jobs. 

2. Immense opportunity for foreign investors

Not many Paraguayans work for large national companies, much less foreign ones. A study by the International Labor Organization revealed that only 5 percent of salaried employees in Paraguay work for a company larger than 50 people. The country nonetheless boasts a large, educated labor pool with no shortage of talent. And since there are few large companies in Paraguay, small to medium-sized enterprises (SMEs) that incorporate there have a better chance of cornering the market in their respective industry and will have the best workers in the country to choose from. 

3. High demand in IT/tech related jobs

The biggest employer in Paraguay currently is the agricultural sector. But in urban areas, the most sought-after positions are in the tech sector – jobs such as software developers, programmers, full-stack developers, engineers, etc. – so much so that demand outpaces supply. Foreign companies that set up shop in Asunción, the capital of Paraguay, should have no problem finding tech talent. The hiring trends in Paraguay in the tech sector are similar to outsourcing in Bogota.

4. High English proficiency level

The hiring trends in Paraguay have also been positively influenced by the fact that many people in the country possess some level of English proficiency. Paraguay ranks fourth in South America in terms of English proficiency, above important countries like Peru and Chile. 

Hiring trends in Paraguay: What do I need to know before incorporating there?

Before incorporating in any country, it’s important to be familiar with the employment laws, the rights, and the duties you’ll have as an employer in Paraguay, and the work culture that comes with moving to a new country. 

  • Working hours: According to employment law in Paraguay, a standard working week is 48 hours long for daytime work and 42 hours per week for nighttime work. This means that each working day should be eight hours long, while a working night should be seven hours long, with each employee resting at least one day a week. Any additional hours are considered extra and should be paid in proportion to the employee’s standard rate of pay, plus an addition based on the extra hours worked. Extra hours on a holiday are paid double in Paraguay.
A Biz Latin Hub infographic on employment law for an article on hiring trends in Paraguay
The hiring trends in Paraguay are widely affected by the employment law in the country
  • Vacations: After a year of work with the same employer, the worker is legally entitled to a 12-day paid vacation. After five years, it’s 18 days’ paid vacation per year, and after 10 years it becomes 30 days. As with all Latin American countries, Paraguay is generous with public holidays. They are as follows:
    • December 8: Virgin of Caacupé Day
    • December 25: Christmas Day
    • January 1st: New Year’s Day
    • March 1st: Heroes’ Day
    • April 14: Maundy Thursday
    • April 15: Good Friday
    • May 1st: Workers’ Day
    • May 15: Independence Day
    • June 12: Chaco Armistice
    • August 15: Founding of Asunción
    • September 29: Boqueron Battle Victory Day

Biz Latin Hub can help you with hiring trends in Paraguay

At Biz Latin Hub, we provide integrated market entry and back-office services throughout Latin America and the Caribbean, with offices in Bogota and Cartagena, as well as over a dozen other major cities in the region. We also have trusted partners in many other markets.

Our unrivaled reach means we are ideally placed to support multi-jurisdiction market entries and cross border operations.

As well as knowledge about hiring trends in Paraguay, our portfolio of services includes hiring & PEO accounting & taxation, company formation, bank account opening, and corporate legal services.

Contact us today to find out more about how we can assist you in finding top talent, or otherwise do business in Latin America and the Caribbean.

If this article on hiring trends in Paraguay was of interest to you, check out the rest of our coverage of the region. Or read about our team and expert authors.

Biz Latin Hub can help you with Hiring trends in Paraguay

The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.
Craig Dempsey

Craig Dempsey

Craig is a seasoned business professional in Latin America. He is the Managing Director and Co-Founder of the Biz Latin Hub Group that specializes in the provision market entry and back office services. Craig holds a degree in Mechanical Engineering, with honors and a Master's Degree in Project Management from the University of New South Wales. Craig is also an active board member on the Australian Colombian Business Council, and likewise also active with the Australian Latin American Business Council.

Craig is also a military veteran, having served in the Australian military on numerous overseas missions and also a former mining executive with experience in various overseas jurisdictions, including, Canada, Australia, Peru and Colombia.

Receive the latest news and advice about expanding your business globally
Subscribe to our newsletter to receive the latest business news and advice about entity formation, legal entity compliance, accounting, back office and fiscal requirements. Receive the latest news and advice about expanding your business globally.

This field is for validation purposes and should be left unchanged.