Hire in Uruguay
Uruguay's economy is characterized by a well-educated workforce, high levels of social spending, and an export-oriented agriculture industry. After averaging 5% yearly growth from 1996 to 1998, Uruguay's economy dramatically declined from 1999 to 2002, owing partly to the spillover effects of Argentina's and Brazil's economic woes. After bank deposits in Argentina were frozen in 2001–02, Argentine citizens made huge withdrawals of dollars deposited in Uruguayan banks, resulting in a drop in the Uruguayan peso and the 2002 Uruguay banking crisis.
Uruguay's economy is ranked 44th in the 2021 Index for economic freedom, with a score of 69.3. Its total score has risen by 0.2 points, owing mostly to improved financial health. Uruguay is placed 4th in the Americas area out of 32 countries, and its overall score is higher than the regional and global norms.
Overview of Uruguay
Uruguay is a South American country with a lush interior and a coastline studded with beaches. Montevideo's capital centres on Plaza Independencia, which was originally home to a Spanish citadel. Ciudad Vieja (Old City), which features art deco structures, colonial dwellings, and the Mercado del Puerto, a historic harbour market with numerous steakhouses. The seaside promenade La Rambla runs past fish markets, docks, and parks.
Total Population: 3.4 million
Total GDP: US US $62.2 billion
This year, Uruguay's economy has remained in the moderately free category, where it has been since the Index's debut in 1995. To move from basically free to mostly free, the government would need to enhance the judicial system, minimize government spending, loosen labour market rules, and lessen state meddling and control in the banking sector. The country's GDP was expected to shrink by 4.5 percent for 2020 due to the COVID-19 pandemic.
Uruguay's agricultural industry, which exports beef, dairy, wine, grains, and forestry products, is the country's economic backbone. Agricultural products account for more than half of Uruguay's overall exports. Food processing and agricultural product refinement account for almost half of all industrial output. The beef was Uruguay's most popular export product in 2019, while China was the country's top export destination. Uruguay is also a desirable market for foreign businesses. It is one of the most politically and economically stable countries in the region, and its Free Trade Zones can function as a regional distribution hub.
Uruguay's economy expanded for the longest time in its history, from 2003 to 2019. According to the Central Bank of Uruguay, while economic growth remained strong in 2014, it began to decelerate in 2014 and fell to 0.5 percent in 2019. Commodity price declines, as well as recessions in Argentina and Brazil - two of Uruguay's key trading partners — all contributed to the fall. Experts predict that the economy will decrease in 2020 because of the coronavirus pandemic's economic repercussions, but it will grow in 2021.
A brief glimpse of the industries
- Agriculture, textiles, and leather: Beef and wool have been Uruguay's most important exports throughout its history. Beef exports have increased since Uruguay joined the Mercosur agreement in 1991, allowing the country to reach out to more distant markets such as Japan. Wool exports have not performed well in recent years, owing to competition from other countries in the market, such as New Zealand, and changes in demand during the developed world's 2008/09 recession. Forestry has become a booming business in recent years, even though timber processing is kept.
- Energy: Uruguay imports crude and refined oil from foreign countries for its energy needs. It manufactures a variety of petroleum products. Uruguay has abundant renewable energy resources, with alternative energy sources providing 95 percent of the country's electricity.
- Mining: Even though this sector does not contribute much to the country's economy, there has been some activity in gold and cement production, as well as granite extraction, in recent years.
- Plastics: Uruguay's most important manufactured exports, thanks to two huge investments made in 1991 and 1997. These investments paved the way for most of Uruguay's significant exports of plastic-based items, which have become critical to the country's economy.
- Telecommunications: Despite the low fixed-line investment, Uruguay's small population has allowed the country to achieve one of the greatest teledensity levels in South America and achieve 100 percent digitalization of major lines. Even though the telecommunications sector has been a governmental monopoly for some time, efforts have been made to liberalize it and allow additional enterprises to enter the cellular sector.
- Tourism & Travel: Travel and tourism contributed 9.4% of the country's GDP in 2013.
Most of their tourism industry is focused on luring visitors from neighboring countries. The interior of Uruguay, notably the region around Punta del Este, is currently the country's most popular tourist destination.
Cost of living in Uruguay
Uruguay's cost of living is US $846, which is 1.15 times more than the global average. Uruguay is the 47th greatest country to live in, with a living cost ranking 86th out of 197 countries. In Uruguay, the average post-tax salary is US $567, enough to cover living expenses for 0.7 months.
Cost of renting in Uruguay
If you are looking to rent a place in Uruguay, then the exact cost you will have to incur depends on several factors, such as the location, amenities, and facilities required. Locations present in the city are much more expensive for renting than locations in the suburbs away from the city. Compared to the United States, renting in Uruguay is much lower than in other countries in South America. Likewise, the cost of living in tier 1 cities is considerably higher than in tier 2 cities.
- Tier 1 cities are Montevideo, Salto, Ciudad de la Costa, Paysandú etc.
- Tier 2 cities are Las Piedras, Rivera, Maldonado, Tacuarembó etc.
The top sectors that are expected to hire in 2021 in Uruguay are: -
Top skills in Uruguay
The economy in Paraguay has been registering impressive growth over the last few years, and the trend is expected to continue post-pandemic. The top skills which are in great demand in Uruguay are: -
- Medicine and Healthcare
- Marketing and Finance
- Analytical Skills
Hiring Cost in Uruguay
The cost of hiring is an extremely important facet for employers while conducting a recruitment process. You need to think about several factors before deciding to hire new personnel, such as: -
- Onboarding and training
- Opportunity costs
- Interviews and hiring processes
- Time invested
Salary structure for various roles
The table below highlights the average salaries that are offered to employees in Uruguay according to different sectors: -
Employment laws in Uruguay
- Payment Of Salary: According to a new law that just went into effect, all payments must now be made using a financial instrument such as a check or a bank transfer. Cash payments are no longer accepted, with a few exceptions. The Ministry of Labor establishes a nationwide minimum wage. Furthermore, each type of company activity has its own set of minimum wages for employees. Wage Panels ("Consejos de Salarios"), composed of employers, employees, and government officials, negotiate these minimum salaries in collective agreements. Salaries are paid on a monthly, weekly, or daily basis
- Working Hours: The standard working day is 8 hours long and 48 hours long every week, with 44 hours for retail workers. It is possible for the parties to agree to labour less, but not more.
- Overtime: This should be paid at twofold the ordinary rate when it is on a functioning day. At the point when it is a non-working day, the rate is more than multiple times.
- Aguinaldo: This is a legitimately required reward instalment equivalent to one month's compensation, known as a thirteenth compensation. It is payable in two portions, part in June and part in December.
- Paid holidays: Each representative is qualified for 20 days of paid occasion each year. At regular intervals of work with a similar boss, they are qualified for 1 extra day each year. During the main year of work, the worker isn't qualified for any occasion – during that first year, they collect the option to take an occasion in the next year.
- Representatives are qualified for extra leave (paid) as follows:
- Maternity leave (12 weeks)
- Paternity leave (3 days)
- Marriage Leave (3 days)
- Study leave for college understudies (6, 9, or 12 days of the year relying upon the number of hours worked)
- Leave for family passing (3 days)
- Leave for association exercises – relies upon the aggregate arrangement)
Payment of Holidays: All representatives are qualified for paid occasions; for example, notwithstanding their right to 20 days of paid occasion leave, they should be given an extra instalment, identical to 100% of their salary for those 20 days. The thought being that they need their ordinary compensation to pay their fundamental requirements, and this extra cash is to empower them to take an occasion.
How Can Skuad Help You with Hiring in Uruguay?
With several rules and regulations to be addressed while recruiting new talent, hiring processes in Uruguay can become complicated and time-consuming. But with Skuad as your hiring partner, you can get the best talent for your organization in a quick time. Connect with Skuad Experts to know more.