According to data from the Service Providers Registry (Repse), the service sector in Paraguay showed remarkable dynamism in 2024, generating 9,288 new jobs. This growth highlights the sector’s role as a critical driver of employment in the country. Figures released by the Ministry of Industry and Commerce (MIC) underscore the significant involvement of local talent across various skill levels, reflecting the strength and adaptability of Paraguay’s workforce.
Employment Breakdown and Workforce Distribution
The labor force distribution within Paraguay’s service sector reveals a diverse structure. Approximately 62% of the workforce comprises unclassified workers, representing 5,799 employees. These roles encompass entry-level positions that provide essential services to businesses and consumers. Meanwhile, the professional level accounts for 25% of the workforce, with 2,330 employees engaged in specialized roles that require advanced education and expertise. The remaining 12%, or 1,158 individuals, operate at the technical level, showcasing the importance of skilled technicians in driving operational efficiency within the sector.
Among the subsectors, merchandise distribution emerged as the leader in job creation, reflecting Paraguay’s strategic position as a hub for regional trade. Cleaning services and land freight transport also played significant roles, underscoring the demand for essential services supporting businesses and households. This diversification across subsectors highlights the resilience and adaptability of the service sector in Paraguay in responding to market needs.
Local Talent as a Driving Force
National professionals play a pivotal role in the service sector’s success. According to Repse data, national professionals represent 24.57% of the workforce, with 2,282 employees actively contributing their expertise to the industry. Additionally, national employees in other categories make up 55.95%, equating to 5,197 workers. This highlights the predominance of local talent and the sector’s ability to effectively harness Paraguay’s human capital.
The strong presence of national talent is a testament to Paraguay’s commitment to workforce development. Educational institutions and vocational training programs have played a critical role in equipping workers with the skills needed to thrive in the service sector. This investment in human capital supports job creation and positions Paraguay as a competitive player in the global market.
Strategic Plans for Sector Growth
Looking ahead, the Ministry of Industry and Commerce has outlined ambitious plans to expand the service sector further. Rodrigo Maluff, Deputy Minister of Commerce and Services, stated that in 2025, the institution aims to grow the industry with a particular focus on exporting business services. This initiative is proposed as a cornerstone for the country’s economic diversification, leveraging Paraguay’s strategic location and skilled workforce.
One key strategy involves modernizing Law No. 1,064/97 on the Export Maquila Industry. This legislative update seeks to enhance the outsourcing of business services, creating new opportunities for Paraguayan companies to compete in international markets. The government aims to attract foreign investment and stimulate job creation within high-value sectors such as finance, technology, and customer support by streamlining regulations and providing incentives for service-related maquila operations.
Service-Related Maquila Operations
Service-related maquila operations represent a significant growth area for Paraguay. Traditionally associated with manufacturing, maquila operations in the service sector involve outsourcing specialized tasks such as software development, data analysis, and business process management. These activities generate employment and contribute to knowledge transfer and technological advancement within the country.
By expanding the scope of the maquila program to include business services, Paraguay can position itself as a competitive destination for outsourcing. This aligns with global trends, where companies increasingly seek cost-effective and skilled labor for back-office operations. The modernization of the maquila law will be instrumental in capitalizing on these opportunities, ensuring that the service sector in Paraguay remains an attractive destination for international clients.
Challenges and Opportunities
While the service sector’s growth is promising, several challenges must be addressed to sustain its momentum. Infrastructure development is crucial to support the sector’s expansion, particularly in logistics and telecommunications. Enhancing internet connectivity and transportation networks will enable service providers to operate more efficiently and reach broader markets.
Additionally, continued investment in education and training is essential to meet the industry’s evolving demands. Programs focusing on technical skills, language proficiency, and digital literacy will ensure that Paraguay’s workforce remains competitive in a globalized economy.
On the other hand, the sector presents numerous opportunities for economic growth. The rise of e-commerce and digital services offers new avenues for innovation and entrepreneurship. Paraguay can unlock the potential of the service sector and drive sustainable development by fostering a supportive ecosystem for startups and small businesses.
Conclusion
The service sector’s performance in 2024 underscores its vital role in Paraguay’s economy. With 9,288 new jobs created, the industry has demonstrated its capacity to generate employment and adapt to market demands. The strong participation of local talent highlights the country’s commitment to workforce development, while strategic initiatives such as the modernization of the maquila law pave the way for future growth.
As Paraguay continues to invest in its service sector, it stands poised to capitalize on emerging opportunities in the global market. By addressing infrastructure challenges and enhancing workforce capabilities, the country can solidify its position as a dynamic and competitive player in the service industry.