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Technology jobs in El Salvador represent 20% of the region’s total

by | Jul 6, 2024

According to the World Bank, technology jobs in El Salvador represent 20% of the region’s total. More than 32,000 Salvadorans work in the technology sector. 

Technology jobs in El Salvador play an increasing role in the national economy

According to the World Bank (WB), El Salvador accounts for 20.8% of the employment in Central America’s information and communications technology (ICT) sector. The report “Digital Trends and Progress Report,” published last March, indicates that in 2022, some 32,000 people were employed in technology jobs in El Salvador out of the more than 154,000 who worked in the Central American region.

According to the World Bank, 13,000 jobs were added in technology manufacturing, including personnel dedicated to working with electronic components, computers, peripheral and communications equipment, and the electronic devices sector. More than 141,000 Central Americans remained in the ICT services sector, working in publishing, audiovisuals and radio broadcasting, telecommunications, data centers and cloud computing, artificial intelligence, and “big data” analysis.

This group also includes information technology (IT) consulting and outsourcing services and operational and application software, including information platforms, search engines, and social networks. The World Bank noted that although the ICT sector does not represent a relatively large portion of workers in Central America, it has maintained an increase in employees in recent years, driven by information technology services. According to the World Bank, more than 68 million people will work in ICT companies by 2022, exceeding the 37 million reported in 2000.

“The contribution of the ICT sector to the share of global employment grew modestly from 1.3% in 2000 to 2% in 2022, with the majority of new jobs added in IT,” the document highlighted.

ICT in the Central America region

El Salvador is the third country in Central America where the highest proportion of employment was concentrated in the ICT sector. It is surpassed by Costa Rica, where more than 50,000 people worked in companies of this type, and Guatemala, which covered some 37,000 and represented 24% of the entire region.

In detail, the ICT services sector added more than 20,000 employees in Honduras, 13% of the total in Central America, while ICT employed 15,000 people in Panama, 9.7%. Belize and Nicaragua were the only countries in the region that did not report employment in the ICT sector. Furthermore, Guatemala and Honduras did not have collaborators in the technology manufacturing sectors.

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Employment in the Salvadoran market

Although hundreds of Salvadorans work in the ICT sector, the commerce and restaurant sector drives more than a third of formal employment in El Salvador. In February, the Ministry of Labor and Social Welfare (MTPS) reported that El Salvador exceeded one million workers in 2023. Of this number, 32% worked in the commerce, restaurants, and hotels sector and in transportation, storage, and food services.

The manufacturing industry came second, while 21% worked in professional, scientific, technical, and administrative services. For their part, 9% worked in the services sector and 4% in financial activities and insurance. Technology jobs in El Salvador continue to play a significant role in the country’s employment landscape.

The growth of technology jobs in El Salvador signifies a pivotal shift in the country’s economic landscape, aligning it with global digital trends. The data reveals that El Salvador holds a substantial share of the region’s ICT employment, underscoring its strategic importance in Central America’s technological advancement. The 32,000 individuals employed in technology jobs in El Salvador represent not just numbers but a skilled workforce driving innovation and economic growth. This sector’s expansion is bolstered by the increasing demand for ICT services, including IT consulting, outsourcing, and software development, which collectively enhance the country’s competitive edge.

The potential for growth in technology jobs in El Salvador is immense

Moreover, diversification within the technology sector, encompassing areas such as technology manufacturing and ICT services, provides Salvadorans with a broad spectrum of opportunities. The addition of 13,000 jobs in technology manufacturing highlights the sector’s capacity to absorb various skills, from engineering to technical support, further solidifying the importance of technology jobs in El Salvador. This diversification is crucial for fostering a resilient economy adapting to global market fluctuations and technological advancements.

The steady increase in ICT employment, as highlighted by the World Bank, is a testament to the sector’s robust growth and potential for future expansion. With more than 68 million people globally working in ICT by 2022, El Salvador’s participation in this sector is a significant player in the international arena. The ongoing rise of technology jobs in El Salvador creates immediate employment opportunities and lays the foundation for long-term economic stability and prosperity.

As El Salvador continues to develop its ICT infrastructure and invest in digital education, the potential for growth in technology jobs in El Salvador is immense. This sector’s evolution promises to elevate the country’s status as a technological hub in Central America, attracting investments, fostering innovation, and ultimately improving the quality of life for its citizens. The future of technology jobs in El Salvador is bright, and their impact on the nation’s economy and society will be profound and enduring.

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