Guatemala Labor Market Assessment

LAC REGIONAL WORKFORCE DEVELOPMENT PROGRAM (ADVANCE) Guatemala Labor Market Assessment MAY 2017 This report was produced for review by the United States Agency for International Development (USAID). It was prepared by FHI 360 for the LAC Advance Program, Cooperative Agreement number AID-0AA-A-15-00076, which is made possible by the generous support of the American people. The data in the report are compiled from a variety of sources, and the views expressed do not necessarily reflect the views of USAID or the United States Government. The use of non-discriminatory language or that which constrains gender is taken into consideration in the LAC Advance Program, made possible by USAID. This document has deferred the use of terms associated with traditional masculinity, understanding the importance of using inclusive language for potential beneficiaries of this program. Guatemala Labor Market Assessment 2 CONTENTS EXECUTIVE SUMMARY .......................................................................................................................5 ACRONYMS ........................................................................................................................................8 ACKNOWLEDGEMENTS .................................................................................................................... 11 OBJECTIVES OF THE PROGRAM ......................................................................................................... 12 PURPOSE OF THIS LABOR MARKET ASSESSMENT .............................................................................. 13 METHODOLOGICAL FRAMEWORK .................................................................................................... 14 LIMITATIONS OF THE ASSESSMENT ................................................................................................... 18 SOCIOECONOMIC CONTEXT .............................................................................................................. 19 PRINCIPAL DEMOGRAPHIC TRENDS ................................................................................................................. 19 MACROECONOMIC CONTEXT ......................................................................................................................... 21 PUBLIC POLICY: HOW DOES POLICY IMPACT OPPORTUNITY? ................................................................................ 23 SOCIAL CONTEXT ......................................................................................................................................... 26 EDUCATION ................................................................................................................................................ 28 GUATEMALAN YOUTH: STRENGTHS AND CHALLENGES ........................................................................................ 31 LABOR MARKET CONTEXT ............................................................................................................................. 35 PRODUCTIVITY ............................................................................................................................................. 37 CHARACTERISTICS OF ENTREPRENEURSHIP ........................................................................................................ 39 ANALYSIS AND SECTOR SELECTION ................................................................................................... 40 STAKEHOLDER MAPPING ............................................................................................................................... 41 SECTOR SELECTION ....................................................................................................................................... 44 VALUE CHAIN ANALYSIS ................................................................................................................... 55 BUILDING A VALUE CHAIN MAP ..................................................................................................................... 58 COLLECTING VALUE CHAIN INFORMATION ........................................................................................................ 61 SECTORS, SUBSECTORS, PRODUCTS, AND SERVICES IDENTIFIED ............................................................................. 62 AGRICULTURE: LEGUMES AND VEGETABLES VALUE CHAIN .................................................................................. 62 MANUFACTURING: TEXTILES AND APPAREL VALUE CHAIN .................................................................................. 72 MANUFACTURING: CHOCOLATES, SWEETS, BAKED GOODS AND OTHER PROCESSED FOODS VALUE CHAIN .................... 82 MANUFACTURING: NON-ALCOHOLIC BEVERAGES VALUE CHAIN .......................................................................... 91 SERVICES: TOURISM VALUE CHAIN .................................................................................................................. 99 CONCLUSIONS ............................................................................................................................... 111 A COMMITMENT TO ECONOMIC AND HUMAN DEVELOPMENT ............................................................................ 111 Guatemala Labor Market Assessment 3 ANNEXES ....................................................................................................................................... 114 ANNEX A. ADDITIONAL TABLES....................................................................................................... 115 ANNEX B. GUATEMALA INTERVIEW GUIDE FOR SECTOR ACTORS ..................................................... 117 INFORMACIÓN DE LA CADENA ...................................................................................................................... 117 INFORMACION DE LA CADENA ...................................................................................................................... 117 DEL PERSONAL CONTRATADO DE LA EMPRESA ................................................................................................. 119 IR MAPEO ............................................................................................................................................... 119 HABILIDADES Y COMPETENCIAS .................................................................................................................... 120 DEL SECTOR EN EL QUE TRABAJA ................................................................................................................... 120 COMENTARIOS ADICIONALES (ALGÚN ACTOR IMPORTANTE A ENTREVISTAR) ......................................................... 120 ANNEX C. ELECTRONIC SURVEY ...................................................................................................... 121 ANNEX D. STRATEGIES FOR GUATEMALA ........................................................................................ 124 METHODOLOGY ......................................................................................................................................... 125 ANNEX E. IDENTIFIED POSITIONS, SKILLS, AND ATTITUDES BY SUBSECTOR ...................................... 127 LEGUMES AND VEGETABLES SUBSECTOR COMPETENCIES .................................................................................. 127 CHOCOLATES, SWEETS, BAKERY PRODUCTS, AND OTHER PROCESSED FOODS SUBSECTOR COMPETENCIES ................. 129 NON-ALCOHOLIC BEVERAGE SUBSECTOR COMPETENCIES ................................................................................. 131 TEXTILE AND APPAREL SUBSECTOR COMPETENCIES .......................................................................................... 132 TOURISM SUBSECTOR COMPETENCIES ........................................................................................................... 134 BIBLIOGRAPHY ............................................................................................................................... 135 Guatemala Labor Market Assessment 4 EXECUTIVE SUMMARY The LAC Regional Workforce Development Program—known as the Advance Program—is strengthening the capacity of select two- and three-year tertiary technical education programs in Honduras, Guatemala, and Jamaica to provide market-relevant, quality training to disadvantaged youth to increase employment. Advance works to build target institutions’ capacities by (1) improving curriculum design and pedagogy, (2) providing professional development opportunities for faculty and staff, and (3) enhancing labor market bridging services to help students find gainful employment after graduating. The program designed and conducted baseline assessments to examine the labor markets—and in particular, market demand for skills—in all three countries. The evaluation of each country’s labor market analyzed economic trends and patterns and identified growth subsectors. Each study looked at the demand for technical education graduates and the supply of qualified workers in selected growth subsectors. The studies entailed significant use of a value chain framework—a tool designed to be adopted by local stakeholders to identify and understand ongoing demand for the types of skills provided through technical education at the tertiary level. The goal of the assessment in Guatemala is to help technical training institutions in the country revamp their offerings, and, more generally, to help decision makers understand what the demand for skills might look like in the future. Traditional labor market assessments are based

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