Looking at Latin America for Staffing Growth?
There’s opportunity but it’s layered with complexity.
According to SIA’s new Americas Staffing Market Forecast (May 2025), Latin America’s staffing revenue is projected to grow by 5% this year in U.S. dollar terms, reaching an estimated $11.7 billion. But the story behind that growth is far from uniform.
What’s Driving the Increase?
Most of the momentum is coming from a few key markets:
- Brazil is leading the region with an estimated $3.4 billion in staffing revenue for 2024, and continued gains expected this year.
- Colombia is showing signs of stabilization after past volatility.
- Argentina, despite industry challenges, is seeing growth fueled by high inflation, which inflates revenue figures even as the market struggles on the ground.
A Region of Contrasts
While there’s growth on paper, currency weakness, high levels of informal labor, and tight regulatory controls continue to hold back overall market potential.
For example:
- Chile follows Brazil as the second-largest staffing market, with around $900 million in 2024 revenue.
- Colombia ranks close behind and is showing encouraging signs of recovery.
But Mexico’s story is different. Since banning temporary staffing in 2021, expectations were high that demand would shift to “specialized services” from staffing firms. That shift hasn’t materialized. The result? According to Mexico’s staffing association, half of the country’s staffing firms have exited the industry since the ban.
Long-Term Outlook: Still Promising
Despite today’s challenges, the report notes that Latin America remains well-positioned for long-term growth due to:
- Proximity to the U.S.
- A maturing staffing industry across key markets
- Broader regional economic expansion
Bottom Line: Latin America is growing, but navigating this region requires deep market knowledge and realistic expectations. There’s clear potential, but success depends on knowing where to play and how to work within complex regulatory and economic conditions.
At prosource IT, we help global clients tap into Latin America’s IT talent market with smart strategies tailored to each country.
Let’s talk about how to scale your team with confidence across the region.