This section analyses the impact of the European Union (EU) investments in Latin America and the Caribbean (LAC) in education and skills development, with a focus on technical and vocational education and training (TVET). It examines the training programmes and initiatives of four major EU enterprises with long-standing operations in LAC. Drawing on interviews with company representatives, the study highlights implementation processes, challenges encountered, lessons learned and the tangible results of their TVET initiatives.
Assessing the Socio‑economic Impact of Foreign Direct Investment in Latin America and the Caribbean
A Focus on EU Investments
Abstract
This chapter analyses how four major EU companies in Latin America and the Caribbean (LAC) support technical and vocational education and training (TVET) for skills development and workforce upgrading. It examines how Santander, Siemens, Telefónica and Volkswagen – selected based on regional and sectoral representation – address significant labour market challenges, such as widespread informal employment, low productivity, persistent skills shortages and stagnant public investment in education and training. The analysis highlights how private sector efforts can provide valuable models for strengthening adult learning systems across Latin America and the Caribbean (LAC).
In LAC, 55.7% of workers are in informal jobs and labour productivity is only about one-third of the OECD average. While unemployment was 6.3% in 2023, employers consistently cite skills shortages as a major obstacle to growth: 22.8% of firms in the region identify an inadequately educated workforce as a constraint compared to 9.7% in South Asia and 11.2% in East Asia.
Foundational skills remain low: fewer than 15% of adults reached high literacy levels in the four LAC countries participating in the OECD Survey of Adult Skills (PIAAC) (versus 44.6% in the OECD), with Ecuador at 5.2%, Peru at 6.1%, Mexico at 11.7% and Chile at 14.5%. And only 3.6% of adults in Ecuador, 5.6% in Peru, 8.9% in Mexico and 11.9% in Chile achieved advanced numeracy (compared to 42.2% in the OECD).
Public education investment has stagnated at around 4.6% of GDP since 2020, while TVET spending averages under 0.2% of GDP – less than half the 0.46% seen in high-income countries. Although 39.2% of LAC firms provide training (above other developing regions but below OECD averages), disparities are stark: 61% of firms in Peru versus 9% in Barbados in 2023. Worker participation in training is higher – averaging 63% across 20 countries – but training is mainly financed by firms, with only 19% of employers receiving public support. These gaps are most acute for small- and medium-sized enterprises (SMEs) and informal workers, reinforcing inequality and limiting productivity growth.
Additionally, compared to local firms, European Union (EU) companies invest more heavily in training, provide more stable employment and offer higher wages. Between 2014 and 2024, EU investors accounted for 32% of all investment in training and education in the region. These companies often adapt the European dual education system to fit local contexts, thereby bridging the gap between education and employment.
Case studies illustrate these initiatives: Santander (banking) leverages digital platforms and partnerships with nearly 700 universities to provide scalable training in high-demand skills; Siemens (manufacturing and energy) promotes science, technology, engineering and mathematics (STEM) education through large-scale programmes reaching students and teachers across the region, while modernising technical training in partnership with vocational training institutes (VTIs), such as Brazil’s National Training Service (SENAI, its acronym in Portuguese); Telefónica (information and telecommunications) combines digital inclusion with gender equality, exemplified by its Mujeres en Red programme, which has integrated women into technical roles in Peru and Colombia; and Volkswagen Mexico (manufacturing and energy) has successfully applied a German-style dual training model, producing thousands of skilled graduates for the automotive industry.
Across these initiatives, several success factors emerge as potential models for the region, which are consistent with OECD recommendations for strengthening adult learning systems in LAC (OECD, 2020[1]; 2021[2]; 2025[3]):
Strong public-private partnerships tailored to local needs. EU firms act as institutional partners by contributing training expertise and multi-stakeholder collaboration. This is evident in Volkswagen’s Dual Training Centre in Mexico and its partnership with Guanajuato’s public VTI and Siemens’ long-standing co-operation with Brazil’s SENAI. Horizontal collaboration through regional networks such as the International Labour Organization (ILO) Cinterfor enhances the effectiveness of these initiatives by connecting VTIs across the region and enabling the exchange of best practices and technical expertise.
Robust monitoring and evaluation systems that ensure measurable impact. A defining feature – and good practice – of these private sector-led TVET initiatives is the establishment of robust monitoring and evaluation frameworks. These not only enhance accountability, but also demonstrate measurable impact to internal and external stakeholders. For example, Santander’s Universia programme tracks alumni outcomes – including employment, wage progression and retention – ensuring sustained impact and providing data to inform programme adjustments. Networks such as ILO Cinterfor support the development of robust monitoring and evaluation frameworks, and facilitate public-private partnerships, ensuring training aligns with labour market needs and local enterprise requirements.
Focusing on job-relevant, high-demand skills. By prioritising high-demand skills, such as digital literacy, automation and leadership, these firms provide participants with practical, job-relevant competencies that significantly enhance their employability upon graduation. Volkswagen adapts its dual training model to the technical requirements of the automotive industry, while Telefónica’s Conecta Empleo and Digital Minds respond to the challenges of digital transformation.
Expanding access through flexible delivery methods. Digital and hybrid programmes – such as Santander’s Open Academy, Universia, MetaRed, and Campus Digital – offer free or subsidised training for vulnerable populations. Training levies can help reach informal workers, who are often excluded from formal TVET.
Promoting inclusion of women, people with disabilities and vulnerable groups. Telefónica’s Mujeres en Red integrates women into technical roles in the telecommunications sector, while Siemens’ Experimento and STEM Network Latin America strengthen science education and teacher training. Extending outreach to Indigenous Peoples, and Afro-descendant and disabled populations remains a priority for more inclusive adult learning systems.
The experiences of Santander, Siemens, Telefónica, and Volkswagen de México underscore the strategic value of EU-supported TVET initiatives in addressing LAC’s persistent labour market challenges. In a region characterised by high informality, youth unemployment and skill mismatches, these corporate-led efforts have helped bridge the gap between education and employment – particularly by adapting elements of the European dual TVET model to local contexts.
5.2.1. High informality, low foundational skills and stagnant education investment
The labour market in LAC faces macro-structural challenges. Although the regional unemployment rate stood at 6.3% in 2023 (World Bank, 2023[4]), a more significant concern is the widespread prevalence of informal and low-quality jobs, with 55.7% of workers involved in informal employment (OECD et al., 2024[5]). Labour productivity remains low – about one-third of the OECD average – and many young adults struggle to access stable, well-paid employment (OECD et al., 2024[5]; OECD, 2024[6]). Meanwhile, employers frequently identify skills shortages as a major barrier to business expansion (OECD, 2023[7]). Investing in human capital is crucial for raising productivity, reducing inequality and strengthening the resilience of labour markets (Arias et al., 2023[8]).
Deficiencies in foundational skills are a core challenge. The OECD Survey of Adult Skills (PIAAC) shows that adults in the four participating LAC countries – Chile, Ecuador, Mexico and Peru – scored well below most countries in literacy, numeracy and problem-solving in digital environments. Fewer than one in eight adults in Ecuador (5.2%), Peru (6.1%), and Mexico (11.7%) reach high literacy levels in PIAAC (Level 3 and above) compared to 14.5% in Chile and 44.6% across the OECD (OECD, 2023[7]). In numeracy, 42.2% of OECD adults scored at Level 3 or above, versus only 3.6% in Ecuador, 5.6% in Peru, 8.9% in Mexico and 11.9% in Chile (OECD, 2023[7]). Additionally, 32.9% of adults in Ecuador, 39.2% in Mexico, and 43.6% in Peru lacked the ICT skills required to take part in the digital assessment compared to 11.7% across all countries participating in PIAAC (OECD, 2023[7]). These skills gaps, combined with high informality, hinder productivity and inclusive economic growth.
Public investment in education in LAC rose from 4.2% of GDP in 2000 to 5.2% in 2010, but fell to 4.4% in 2015 and stood at 4.6% in 2020 (Arias et al., 2023[8]). This stagnation risks weakening the link between formal education, practical skills and employment. While formal education is crucial, productivity differences across countries largely reflect workers’ ability to complement schooling with ‘’learning by doing’’ – skills gained on the job (ILO, 2017[9]; OECD, 2024[10]). This underscores the need to strengthen vocational training institutions.
Public spending in technical and vocational education and training (TVET) in LAC averages less than 0.2% GDP, well below the 0.46% average of high-income countries. Costa Rica is an outlier, raising spending from 0.3% of GDP in 2015 to 0.71% of GDP or 30% of secondary education outlays (Hanni, 2019[11]; World Bank, UNESCO & ILO, 2023[12]). Despite budget constraints, public institutions, such as Brazil’s S-system, Colombia’s National Training Service (SENA), Peru’s National Industrial Technical Training Service (SENATI) and Mexico’s National College of Technical Professional Education (CONALEP), are strengthening links between education and labour market needs in partnership with the private sector.
LAC economies employ fewer people in high-skill, high-value-added sectors compared to OECD countries (OECD, 2023[7]). Although some workers in LAC receive on-the-job training, the region still lags in providing adult learning opportunities. This gap stems from low participation rates among self-employed and informally employed individuals who generally have no access to training, as well as those working in industries with limited research and development intensity. These groups form a larger portion of the labour force in LAC than in OECD countries (OECD, 2023[7]).
5.3.1. Firm training in LAC exceeds other developing regions, but is still below high-income countries, with wide cross-country disparities.
Despite gaps in skills and education outcomes, some firms in LAC do invest in formal training – more so than in most other developing regions, though still below the levels seen in high-income countries (World Bank, 2024[13]). On average, 39.2% of firms across 31 LAC countries provided formal training to their permanent, full-time employees during the most recent fiscal year with available data (World Bank, 2024[13]) (Figure 5.1 A). The average in other developing regions ranges from 36.5% in Europe and Central Asia to 9.8% in South Asia. It is important to note that this regional average is based on data collected over different years within the 2009-2025 period as the reference fiscal year varies by country or when the data is available (Figure 5.2 A).
Nevertheless, this regional average masks wide disparities across countries. For example, in 2024, 55% of companies in Ecuador offered formal training compared to just 23% in Jamaica (Figure 5.2 A). In 2023, 61% of firms in Peru reported offering training programmes, while the share was lower in other countries: 42% in Colombia, 38% in Mexico, 37% in Costa Rica and Paraguay, 35% in El Salvador and as low as 9% in Barbados (Figure 5.2 A). These disparities reflect country-specific factors, such as the economic sector composition and the size of the formal labour market (Hanni, 2019[11]).
Note: The regional averages reported here are based on the number of countries indicated in brackets following the region’s name. The regional averages are based on data collected over different years within the 2009-2025 period as the reference fiscal year varies by country. For panel A, the survey question was ‘’Over fiscal year [last complete fiscal year], did this establishment have formal training programmes for its permanent, full-time employees? For panel B, the question asked was ‘’Referring to the training programmes run over fiscal year [last complete fiscal year], what percentage of permanent, full-time employees of the following categories [production or non-production workers] received formal training? For panel C, the question was ‘’To what degree is an inadequately educated workforce an obstacle to the current operations of this establishment?
Source: Based on World Bank (2025[14]), Enterprise Surveys Indicator Descriptions https://www.enterprisesurveys.org/en/data/exploretopics/workforce.
Note: This data includes all LAC countries that reported to the World Bank Enterprise Surveys over the last fiscal year they did. The year in which the country last reported is indicated in brackets.
Source: Based on World Bank (2025[14]), Enterprise Surveys Indicator Descriptions https://www.enterprisesurveys.org/en/data/exploretopics/workforce.
5.3.2. Relatively high training participation yet limited public financing and uneven access
More than half of formal employees in LAC reported receiving some form of formal training, but with wide cross-country variation (World Bank, 2024[13]) (Figure 5.1 B). Between 2010 and 2025, an average of 63.1% of workers in 20 countries said they were offered formal training (Figure 5.1 B). In 2024, 69.1% of employees in Ecuador received training compared to only 28.5% in Uruguay. In 2023, the share reached 84.4% in Colombia, 78.2% in El Salvador, 77.5% in Mexico, 72.3% in Peru, 69.5% in Costa Rica and as low as 58.8% in Paraguay (Figure 5.2 B) (World Bank, 2024[13]).
Despite these relatively high participation rates, enterprise investment in training remains modest. Training costs account for only 4% of operating expenses in Honduras and 2% in Uruguay (Hanni, 2019[11]). When firms do invest in training, firms bear most of these costs themselves – 87% in Uruguay, 86% in the Bahamas, 81% in Honduras and 75% in Colombia – while public financing is minimal (Hanni, 2019[11]). Only 19% of firms offering training reported public financial support and in 7 of the 12 countries surveyed this share was under 15%. Access is especially limited for SMEs: just 13% of small firms (fewer than 20 employees) and 22% of large firms (100 or more employees) received public support for TVET (Flores-Lima et al., 2014[15]). While training levies exist – for example, Jamaica’s HEART/NSTA levy of 3% on formal enterprises – funds are mainly directed to the administration and training courses of vocational training centres, leaving limited funding for continuous training and apprenticeships. These findings highlight the limited use of public resources for training despite the region’s efforts to enhance workforce development.
Informal workers, who represent 55.7% of LAC’s workforce, have even less access to training (OECD, 2024[6]). SMEs, which dominate the region’s economies, also show low TVET participation (Flores-Lima et al., 2014[15]). These gaps reinforce low productivity, constrain mobility and widen inequality. Addressing them requires policies that extend beyond formal employment, ensure access for vulnerable groups and strengthen public-private collaboration. Lessons from Africa’s national training funds, which earmark levy revenues for informal sector training, suggest a model LAC could adapt. VTIs would play a central role in delivering accessible, relevant programmes.
Private investment in on-the-job training is largely driven by skills shortages. On average, 22.8% of firms in 31 LAC countries identified an inadequately educated workforce as a major or severe constraint between 2009 and 2025 (World Bank, 2024[13]) (Figure 5.1 C). This rate is much higher than in South Asia (9.7%), East Asia and Pacific (11.2%) or Sub-Saharan Africa (13.8%). Differences within LAC are stark: in 2024, 49.7% of employers in Ecuador reported an inadequately educated workforce as a constraint, compared to only 14.8% in Jamaica (World Bank, 2024[13]) (Figure 5.2 C). In 2023, the share was 22% in Peru, 21% in Paraguay, 17% in Colombia, 16.3% in Mexico, 16.2% in Costa Rica, 11.4% in El Salvador and as low as 2.3% in Barbados (Figure 5.2 C) (World Bank, 2024[13]). These disparities reflect the relative strength of vocational training institutions, from robust systems such as Costa Rica’s National Training Institute (INA) and Colombia’s SENA to weaker institutions like Ecuador’s Service for Professional Training (SECAP). Globally, 19.2% of firms reported an inadequately educated workforce (World Bank, 2024[13]), placing LAC above the average and highlighting the urgent need for stronger TVET systems to enhance workforce competitiveness and productivity.
TVET systems vary widely worldwide. Across OECD countries, 44% of learners in upper-secondary education are enrolled in vocational programmes (OECD, 2023[16]). In flexible employment systems like the United States and the United Kingdom, employers and the public sector provide limited training. By contrast, co-ordinated market economies, such as Germany and Austria, rely on close partnerships between firms, labour institutions and industry associations (Hall and Soskice, 2001[17]). In the European Union (EU), stronger employment protection and long-term job frameworks incentivise companies to invest in skills, supporting high-skill, high-wage economies (European Parliament, 2025[18]).
TVET is a well-established system in Europe. EU systems combine strong institutional frameworks with active employer involvement, easing school-to-work transitions and supporting inclusive growth. Dual systems pioneered in Germany, Austria and Switzerland integrate classroom learning with workplace training (European Commission, 2025[19]). These approaches reduce youth unemployment, strengthen social cohesion and create resilient labour markets (Cedefop, 2023[20]; Martin-Izquierdo and Torres Sánchez, 2022[21]).
Many LAC countries have adapted elements of the European model. Rather than replicating systems outright, vocational training institutions (VTIs) tailor approaches to local labour markets and institutions. Evidence from Europe shows TVET expands access to quality education and decent work (European Commission, 2013[22]), with each additional year raising wages by 7% for women and 10% for men (Cecchini, 2019[23]). However, effectiveness of TVET is limited where small and medium-sized enterprises (SMEs) dominate, since they often lack resources to support structured training (Flores-Lima et al., 2014[15]). Unlike traditional academic routes, TVET equips learners with industry-relevant skills, particularly benefiting women, youth at risk and people with disabilities (McGrath and Yamada, 2023[24]).
European firms in LAC play a distinct role. Compared to local companies, they typically invest more in training, offer higher wages (Figure 2.21) and employ more permanent workers (Figure 2.24) – reflecting both European institutional practices and their concentration in capital- and technology-intensive sectors. In 26 of 31 LAC countries, EU firms pay above-average wages and in 20 countries they provide more stable employment (Figure 2.21).
EU investment also strengthens local training systems. Between 2014 and 2024, EU investors accounted for 32% of all training and education investment in LAC (Figure 2.35). Beyond capital, they introduce training models, promote corporate social responsibility (CSR) and work with local partners to align TVET programmes with regional industry needs (EU-LAC Foundation, 2012[25]). Successful adaptation, however, requires sensitivity to local labour market, education systems and social conditions. Public-private partnerships at the level of VTIs have proven effective in making TVET accessible, relevant and sustainable, provided governments, educational institutions and firms closely collaborate.
TVET in LAC has partial European roots. Some studies show how European dual education models – particularly Germany’s and Switzerland’s – were introduced through firms familiar with on-the-job training (DHLA, 2018[26]). Institutions like Brazil’s SENAI and Colombia’s SENA drew inspiration from Switzerland’s dual system in the 1960s. The creation of the International Labour Organization’s Inter-American Centre for Knowledge Development in Vocational Training (ILO Cinterfor) in 1962 also established a lasting framework for regional horizontal collaboration and exchange of good practices among VTIs, supported through yearly technical commissions. Unlike in Africa, where European donors played a larger role, TVET development in LAC has been primarily driven by regional institutions themselves, shaped by challenges such as youth unemployment, informality and skills mismatches as discussed in the previous section.
The EU’s own transition priorities reinforce TVET’s importance. As the EU advances its green and digital transitions, high-quality TVET is essential for equipping workers with future-ready skills (European Commission, 2022[27]). EU firms recognise this and actively support training initiatives in LAC (European Commission, 2025[19]).
Several leading European companies illustrate this engagement, particularly in information and communications, manufacturing, electricity and banking (see Chapter 3). Volkswagen and Siemens (manufacturing and energy), Santander (banking), and Telefónica (telecommunications) were selected for review based on sectoral relevance, regional footprint and the depth of their TVET programmes. They operate in areas aligned with EU-LAC Global Gateway priorities – digital connectivity, transport, sustainable energy and financial inclusion – and have demonstrated sustained investment, innovative training models or participation in public–private partnerships. It is important to note that the information provided below is based on self-reported data from companies collected by the OECD. These private-led efforts are presented as illustrative examples, alongside many other initiatives by European companies, NGOs or development agencies investing in TVET in LAC.
Major firms, their sector, main TVET initiatives executed in LAC and their impact.
Note: The details above are company self-reported information.
Source: Author’s own elaboration based on interviews with company representatives and information provided directly by the companies.
5.6.1. Siemens
Siemens is a German multinational technology company with over 130 years of presence in Latin America, specialising in industrial automation, energy and mobility. In Brazil, where this case study focuses, Siemens built the country’s first long telegraph line in 1867, connecting Rio de Janeiro with the province of Rio Grande do Sul (Siemens, 2025[28]).
Siemens’ investment in TVET in Latin America demonstrates a strategic commitment to fostering employability, social cohesion and local value creation. Through Siemens Stiftung, it develops and implements STEM-focused initiatives, such as Experimento, STEM Education for Innovation, and the Open Educational Resources Centre, that empower educators and students with practical knowledge, digital skills and access to high-quality teaching resources. Partnerships with VTIs like SENAI in Brazil and regional networks like STEM Network Latin America foster collaboration across education, civil society and the private sector.
Siemens’ TVET programmes help bridge socio-economic gaps by equipping youth with relevant skills, boosting their employability and preparing them for meaningful careers in emerging industries. By aligning education with social responsibility, Siemens supports innovation, sustainability and economic development in the region.
5.6.2. Volkswagen
Volkswagen Group, a German multinational automotive manufacturer, has long considered Mexico and South America strategic markets. Its first plant outside Germany was established in São Paulo in 1953, and in 1964 it founded a subsidiary in Mexico – Volkswagen de México – to handle the manufacturing, sales and distribution of Volkswagen vehicles in Mexico and Latin America (Volkswagen, 2024[29])
Volkswagen de México’s investment in TVET is central to building a skilled workforce and fostering local value creation. Its Dual Training Centre with the Technological University of Puebla has trained nearly 6 000 mechatronics graduates, many employed within Volkswagen or its supplier network. Partnerships with institutions like the College of Scientific and Technological Studies of Guanajuato has led to the graduation of over 70 students in automated manufacturing, directly linking graduates to jobs at the Silao engine plant.
The company also embeds diversity and inclusion in its workforce strategy. Initiatives such as For the Love of Mexico reached over 23 000 people in 2024, while dedicated efforts have increased women’s participation in technical careers. Recognitions such as certification in Labour Equality and Non-Discrimination and its designation as a Top Employer 2025 highlight this commitment. By strengthening its local supply chain, investing in high-tech training and promoting inclusive employment, Volkswagen de México enhances competitiveness, while contributing to sustainable economic development and industrial resilience in Mexico.
5.6.3. Telefónica
Telefónica, a Spanish multinational telecommunications firm and one of the largest telephone operators and mobile network providers worldwide (Telefónica, 2025[30]), has operated in Latin America for over 35 years, beginning with Chile in 1989. Today, 8 of its 12 markets are in the region: Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay and Venezuela. In recent years, the company has been strategically divesting in many of its locations, with the notable exception of Brazil (Stone, 2025[31]).
Telefónica’s TVET initiatives address structural challenges like unemployment, the digital divide and gender inequality. Programmes such as ProFuturo, Conecta Empleo and Mujeres en Red provide digital and technical skills to underserved communities, with the latter training over 400 women for careers in telecommunications. Many initiatives are delivered through national and international partnerships – for example, Conecta Empleo in Chile was delivered jointly with the Inter-American Development Bank, the Ministry of Labour and ChileValora – a public VTI that certifies workers’ skills to improve employability.
Telefónica also advances digital inclusion through Internet for All, which expands connectivity, while integrating educational components. Internally, initiatives such as Universitas and Digital Minds promote upskilling and lifelong learning among employees. Together, these efforts strengthen employability, inclusion and workforce adaptability in a rapidly evolving labour market.
5.6.4. Santander
Santander is a Spanish multinational financial services company primarily focused on retail banking. Santander established a significant banking presence in Latin America beginning in 1963. It re-entered and acquired banks across the region in the mid-1990s, becoming a leading foreign bank in South America by 1998 (López-Morell and Bernabé Pérez, 2018[32]). By 2023, Brazil, Mexico and Chile were among its top markets by revenue, with Latin America being a key driver of its global growth (SIA, 2020[33]).
Santander’s collaborative, digital-led TVET initiatives have expanded access to skills development, fostering equitable education-to-employment pathways and regional socio-economic progress. Through a suite of programmes – including Santander Open Academy, Universia, MetaRed, and Campus Digital – the bank has created a strong ecosystem that connects higher education institutions with labour markets and promotes lifelong learning. The company has built replicable and scalable initiatives, focused on digital skills, lifelong learning and targeted support to vulnerable populations. Working with around 700 universities, it has reached over 1.5 million people in Latin America in 2024. Santander’s experience offers important insights for implementing large-scale training initiatives in diverse and complex regional contexts. Its approach, focused on flexible delivery, context-specific adaptation and inclusive outreach, highlights how large-scale skills training can be both scalable and socially transformative through strategic partnerships, digital innovation and robust impact measurement.
How EU firms drive skills development in LAC: Good practices from the private sector
The TVET initiatives of the selected companies show how leading EU firms increasingly view skills development as key to inclusive and sustainable growth in LAC. Despite operating in diverse sectors –telecommunications, manufacturing or banking – they share several common success factors: public-private partnerships, alignment with labour market needs, use of digital and flexible platforms, targeted support to vulnerable groups, promotion of technical careers, and robust monitoring and evaluation frameworks. These good practices provide valuable models for other European and international firms seeking to strengthen skills development in the region.
Effective public-private partnerships with VTIs are key to employment outcomes
The EU-LAC’s Global Gateway Investment Agenda, presented at the EU-CELAC Summit in 2023, underscores the importance of private sector involvement in public projects for sustainable development (European Commission, 2025[34]). Yet, to ensure that these investments translate into inclusive growth, sustainable practices and decent work, it is essential to consider the enabling environment – particularly the role of active labour market policies (ALMPs). Increased public expenditure on ALMPs are associated with reductions in unemployment rates (European Commission, 2020[35]).
EU private firms have developed TVET initiatives to address employment challenges in LAC. Partnerships with VTIs, such as Telefónica’s collaboration with national training institutes or Siemens’ work with local VTIs, are particularly effective in supplying skilled workforces when these institutions are closely linked to enterprises, as seen in Brazil’s S-system. At the regional level, the ILO Cinterfor network provides a platform for knowledge exchange and collaboration among VTIs in LAC, supporting alignment with enterprise needs and fostering best practices. Volkswagen’s partnership with the public TVET institution in the State of Guanajuato has allowed for employment opportunities to university students before graduation (Box 5.1). Likewise, Siemens’ partnership with Brazil’s SENAI has been critical for the modernisation of technical education nationwide (Box 5.2).
Developing skills in Mechatronics: Dual Training Centre
Operated by Volkswagen Group Academy Mexico (VWGAM), the Dual Training Centre (CFD, its acronym in Spanish) has expanded through strategic academic partnerships. Officially recognised as a training centre by the Mexican-German Chamber of Commerce and Industry (CAMEXA) in 1971, the CFD partnered with the Technological University of Puebla in 2021 to offer a degree in mechatronics. Students can continue their studies toward a mechatronic engineering degree, while also earning a CAMEXA diploma, providing international certification. Nearly 6 000 CFD graduates have joined Volkswagen de México or its suppliers, primarily, as production specialists, with some advancing into management-level positions. This highlights the programme’s effectiveness in enhancing employability and career development within the automotive sector.
As of April 2025, the CFD in Puebla trains 116 students across three cohorts in manufacturing, automation and sustainable mobility. These apprentices, aged 17-21, were selected through a competitive process and demonstrate values such as integrity, responsibility, teamwork and a strong alignment with the corporate culture. Upon graduation, they are equipped to analyse, design, construct and implement technological systems, with competencies in mechatronics, automation, robotics and machining – key to optimising production processes.
Strengthening manufacturing skills: CECyTE Guanajato
In 2019, Volkswagen de México's engine plant in Guanajuato partnered with the College of Scientific and Technological Studies of the State of Guanajuato (CECyTE) through VWGAM to promote student participation in automative manufacturing. This programme enables CECyTE students to receive dual training at Volkswagen’s Silao engine plant. As of April 2025, more than 70 students have graduated from this programme, with many continuing employment at the plant. This partnership focuses on soft and technical skills, with a 24-month training period that includes active participation at the plant. As of April 2025, 52 students are enrolled, gaining professional experience closely aligned with their field of specialisation. It fosters the development of professional competencies, access to productive and well-compensated employment, and practical work experience prior to graduation.
Note: Additional information regarding Volkswagen de México’s TVET programmes is detailed in Annex 5.A.
Source: Self-reported from Volkswagen de México.
Building careers in the digital era
To support the future of industry and education in Brazil, Siemens has partnered with SENAI to provide young people with high-quality training and greater access to modern technology. Since 2022, this collaboration has strengthened technical education, promoted innovation and helped schools modernise their teaching methods.
Siemens and SENAI have developed hands-on learning experiences in nearly 600 schools across Brazil. In 2023, Siemens supported the country’s largest project to improve classroom equipment in SENAI’s industrial training centres. Students learn how modern industry works by exploring real-world scenarios – such as monitoring machines, improving workplace safety and increasing efficiency. These training sessions help young people understand how technology can be used to solve challenges in factories and other workplaces. The success of this initiative has attracted interest from similar institutions outside Brazil, such as SENATI in Peru, which receives support from SENAI and other ILO Cinterfor members. Strengthening horizontal collaboration across vocational training institutions at all levels is a key objective of Cinterfor, facilitating the exchange of knowledge, best practices and technical support across the region.
By combining classroom instruction in technical disciplines – such as industrial mechatronics, automation and mechanical engineering – with hands-on training at Siemens’ facilities, the TVET programme gives students real-world experience with cutting-edge technology. Siemens is also helping students discover how technology can make work more efficient, safe and sustainable through visits to its Digital Experience Centre – an interactive space that brings together the physical and digital worlds (Siemens, 2024[36]). The programme’s focus on Industry 4.0 skills – including digital literacy, automation and robotics – reflects Siemens’ commitment to preparing students for the rapidly evolving demands of modern industry. By incorporating Industry 4.0 content, Siemens addresses the increasing global shift towards digitalisation and automation, equipping Brazilian students with skills essential for future employment.
The programme’s impact extends beyond individual employment; it also strengthens Brazil’s technical and industrial labour force. This workforce development is essential in a country where skills mismatches and gaps have traditionally hindered productivity and growth (Cardin, 2024[37]).
Note: Additional information regarding Siemens’ TVET programmes is detailed in Annex 5.A.
Source: Self-reported from Siemens.
EU firms and development agencies closely collaborate with VTIs to strengthen TVET initiatives. The EU’s Team Europe Initiative for Inclusive and Equitable Societies, involving the EU and six member states, prioritises education and training for employability and social inclusion (EU, 2024[36]).
Complementing these efforts, ILO Cinterfor fosters horizontal collaboration among regional VTIs, facilitating the exchange of best practices, methodologies and experiences. This network extends beyond LAC, connecting with European VTIs such as Spain’s National Employment Institute (INEM) and Portugal’s Employment and Professional Training Institute (IEFP), enabling European companies to enhance capacity and extending the reach of their TVET initiatives. Other partners, including the World Bank, Inter-American Development Bank, UNESCO, GIZ and the Agence Française de Développement (AFD), also invest in TVET and capacity-building initiatives across LAC. This multi-regional collaboration enables firms to expand impact, strengthen local systems and generate both social and business benefits.
Aligning training with labour market demand secures stronger employment outcomes
A critical success factor is the focus on the alignment between training programmes and evolving labour market demands. All four companies have embedded employability as a core objective, focusing on skills that are in high demand – such as digital literacy, automation, programming and leadership. Volkswagen’s dual training model is linked to the automotive industry’s technical needs; Telefónica’s Conecta Empleo and Digital Minds address digital transformation gaps; Santander integrates labour market insights into programme design via Universia and external partnerships; and Siemens promotes STEM education through their STEM Network Latin America. This alignment ensures that participants acquire practical, job-relevant skills, enhancing their employability upon graduation.
Digital education initiatives: ProFuturo, Technology with all Senses, Conecta Empleo and Digital Minds
The Telefónica Foundation implements initiatives aimed at improving employability across all age groups, with a strong focus on digital inclusion. ProFuturo, a digital education initiative, seeks to reduce the global education gap by using technology to enhance digital skills among students and teachers in vulnerable communities (Telefónica/La Caixa, 2025[37]). Similarly, the programme Technology with All Senses raises awareness among children about safe, healthy and responsible technology use (Fundación Telefónica, 2025[38]). The Programming Campuses and Conecta Empleo programmes provide training and guidance in digital skills for young people and adults, helping them access employment opportunities (Fundación Telefónica, 2025[39]). Meanwhile, the Reconectados initiative supports older adults in acquiring the digital knowledge necessary to navigate today’s world (Fundación Telefónica, 2025[40]). Programmes such as Digital Minds focus on upskilling the workforce in digital competencies and agile mindsets. Targeted reskilling initiatives support the development of specialised roles in data analysis, data science and process automation. Additional upskilling is provided in areas such as business-to-business (B2B) engineering, commercial excellence and B2B customer service.
Employees can also pursue technical certifications aligned with market demands, particularly in technology-related fields. The Innovation Hub nurtures a culture of problem-solving and innovation beyond traditional efficiency goals. The Lean Six Sigma Programme offers structured training across different levels of complexity, equipping employees to improve processes and enhance customer experience. Additionally, Telefónica promotes large-scale reskilling and upskilling programmes aimed at developing critical business competencies and enhancing the employability of professionals. This is facilitated through the Workforce Skills Planning process, which is implemented globally, including across its operations in Latin America. The process helps identify skills gaps and address the impact of technological change, digitalisation and automation on the workforce. Recognising the dynamic environment in which it operates, Telefónica invests in continuous TVET to ensure that employees can update their skills and remain essential in an evolving market (Telefónica, 2025[41]).
Due to these diverse TVET initiatives, Telefónica has made substantial progress in advancing employee learning and development across Latin America, especially in Brazil. Engagement in learning is high, with 85% of employees in Brazil and 88% in Hispanic America participating in skills development. On average, Brazilian employees spend 57 hours per year on learning, compared to 24 hours in other countries in Latin America.
Note: Additional information regarding Telefónica’s TVET programmes is detailed in Annex 5.A.
Source: Self-reported from Telefónica.
Digital and hybrid models expand access and adaptability of TVET
The use of digital platforms and diversified delivery modes has greatly expanded the reach and adaptability of TVET programmes. Santander’s Open Academy offering digital courses in high-demand fields like AI and cybersecurity, Telefónica’s online training via Digital Minds and Universitas, Volkswagen’s combination of classroom and on-the-job training in mechatronics, and Siemens’ online open educational resources via the STEM Education for Innovation initiative illustrate the effectiveness of integrating digital and hybrid learning. These models have enabled learners from diverse geographies and socio-economic backgrounds to access opportunities and allowed programmes to adapt quickly to changing conditions, such as those posed by the COVID-19 pandemic.
Santander Open Academy: Scaling employability through digital learning
Santander Open Academy leverages digital platforms to deliver flexible, scalable formal education programmes and free courses in digital skills, languages, leadership and other disciplines aligned with labour market demands (Santander, 2025[42]). Providing over 1 000 scholarships annually, these programmes help participants build soft and technical skills essential for lifelong employability.
Santander has established partnerships with 1 181 universities and institutions worldwide, nearly 700 of which are in Latin America. These collaborations support scholarships for undergraduate and postgraduate studies, living stipends, international mobility and research opportunities. Additionally, the bank fosters adult education through open-access lifelong learning programmes.
The bank provides flexible delivery models – online, hybrid, and in-person – to maximise accessibility. Initiatives such as MetaRed and Campus Digital promote digital transformation, sustainability, entrepreneurship and academic innovation in higher education institutions (MetaRed, 2025[43]; Universia, 2025[44]). Employability is further enhanced through Universia, a platform that connects young talent with universities and companies through job portals, virtual job fairs and internship opportunities (Universia, 2025[45]). In 2024, Universia featured over 100 800 job postings from approximately 3 800 companies across Latin America and Europe.
Note: Additional information regarding Santander’s TVET programmes is detailed in Annex 5.A.
Source: Self-reported from Santander bank/foundation.
Equity-focused TVET models advance gender equality and disability inclusion
A shared commitment to inclusion – particularly gender equality and support for vulnerable populations – has been central to the success of these initiatives. Telefónica’s Mujeres en Red has overcome gender stereotypes by integrating women into technical roles in telecommunications, while Santander’s Fundación Universia (in the process of expanding into Latin America) and women-focused leadership programmes aim to improve outcomes for people with disabilities and at-risk populations. These targeted efforts ensure that TVET benefits extend to underrepresented groups, contributing to social cohesion and equity.
Fostering gender equality in telecommunications: Mujeres en Red
Telefónica’s Mujeres en Red (Women Networking) initiative addresses gender disparities in technical roles by training women for careers in telecommunications. Launched in Peru in 2020 and expanded to Colombia, the programme partners with contractors and NGOs to recruit and train women in telecommunications, offering both technical and emotional support. Since its launch, Mujeres en Red has grown from just 12 participants to over 400 women now working in the telecommunications sector in roles such as customer service, infrastructure maintenance, logistics and B2B operations.
By May 2025, the programme was operating in 12 regions of Peru, contributing to local value creation. It supports digital empowerment by involving women in the expansion of fibre-optic networks, thereby increasing connectivity in underserved communities. In addition, more than 2 900 people – including technicians and administrative staff – have received gender equity training covering topics such as women’s empowerment and unconscious bias. These efforts help build a more inclusive industry, where both women and men have equal access to development opportunities.
Scaling the programme to reach more regions across Peru has been a key challenge, requiring stronger partnerships with local stakeholders to encourage broader participation and bring more women into the Mujeres en Red initiative. The launch was supported by the Ministry of Women and Vulnerable Populations in Peru, which provided social and emotional training for participants and helped include women from vulnerable backgrounds. In 2024, Telefónica also formed a strategic alliance with the NGO CESAL and the Spanish Chamber of Commerce in Peru to further expand the initiative. Additionally, Mujeres en Red has extended beyond Peru. Since 2021, it has also been implemented in Colombia, where it has integrated 614 women into the technical workforce of Telefónica’s contractors.
Mujeres en Red have demonstrated that gender equity is not only a matter of social justice, but also a driver of innovation and business performance. In 2024, women technicians achieved customer satisfaction and productivity levels equal to those of their male peers. These outcomes confirm that increasing women’s participation in the sector helps close gender gaps, while maintaining high standards of service quality and customer experience.
Note: Additional information regarding Telefónica’s TVET programmes is detailed in Annex 5.A.
Source: Self-reported from Telefónica.
Beyond gender, some initiatives also focus on people with disabilities and broader inclusion. Santander, for example, has several programmes: Enable Network, which tackles bias and stereotypes; DiverTechies, which promotes employability and Open Your Senses, which helps employees experience challenges faced by people with disabilities. As a result, Santander employs 4 700 people with disabilities (Santander, 2024[46]). Similarly, Siemens raises awareness about disabilities, engages with global advocacy organisations, promotes workplace accessibility and has an Inclusion Agreement in Germany to reinforce its commitment (Siemens, 2025[47]).
Telefónica has multiple programmes and policies related to disability inclusion. In 2023, the company employed 2 700 people with disabilities and set a goal to double that number by the end of 2024 (Telefónica, 2023[48]). Accessibility is integrated as a cross-cutting element across products, services, facilities and channels (Telefónica, 2023[49]). Telefónica also strengthened its commitment by signing the ''Principles for Driving the Digital Inclusion of People with Disabilities'', aimed at closing the digital divide. To promote workforce inclusion internally, the company published a "Disability at Work'' guide to support interaction and inclusion (Telefónica, 2023[50]).
Other organisations, such as Spain’s National Organisation for the Blind (ONCE, its acronym in Spanish), collaborate with private sector partners to provide training and employment opportunities for persons with disabilities. This demonstrates how multi-stakeholder partnerships can enhance the inclusiveness of TVET programmes. Taken together, these efforts underscore the potential for companies and public institutions to scale impact and foster equitable access to skills development (ONCE, 2025[51]).
Attracting youth to technical careers and investing in teachers drives TVET success
Recognising the need to attract more youth to technical vocations, all four companies have implemented awareness-raising campaigns and school-based outreach. Volkswagen has promoted technical education in regions near its production facilities; Telefónica leverages youth engagement in digital careers through the Technology with All Senses initiative; Santander uses its Universia platform to connect young talent with job opportunities and skill-building resources; and Siemens provides educational content in STEM through Experimento.
Investment in instructor training has underpinned programme effectiveness. Volkswagen’s dual education approach includes rigorous industry-aligned training for teachers. Telefónica’s partnerships with educational institutions help modernise pedagogy and Santander works with global leaders like the London School of Economics, Google and Harvard University to ensure the excellence of its training offerings. Siemens also offers professional development for educators through their Open Educational Resources Centre.
Expanding STEM education through hands-on learning: Experimento
Experimento is Siemens Stiftung’s international education programme, designed to promote quality STEM learning through hands-on, learning by doing. Designed to align with national curricula, it supports institutions with the STEM Network Latin America by providing accessible, high-quality educational content, resources and teaching formats for all levels of education (Siemens Stiftung, 2023[52]).
The programme started in Latin America in 2011, with Chile as the first country to adopt it. Since then, Experimento has steadily expanded its reach. As of 2023, the programme is present in 6 000 educational institutions across eight countries in Latin America – Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Mexico, Peru and Uruguay (Siemens, 2025[53]). It has trained more than 18 000 teachers and reached an estimated 1.45 million preschool and primary school students. This estimate is based on an assumed multiplier effect, where each trained teacher transfers their knowledge to multiple classes or groups (Siemens Stiftung, 2023[52]).
The programme offers free professional development for educators in STEM, along with high-quality teaching and learning materials. These materials are provided in both online and blended formats, ensuring access regardless of local levels of connectivity. Importantly, Experimento is classified as an open educational resource, which means the content can be freely used, adapted and enriched by local educators to align with national curricula and respond to specific educational needs. Experimento is grounded in an interdisciplinary approach, covering subjects such as science, technology, sustainability and climate change. A key feature of the programme is its integration of academic learning with social responsibility. This connection helps foster more engaged, thoughtful and empathetic learners.
Adapting the German dual learning system, the programme emphasises active learning, encouraging students to explore, ask questions and investigate real-world challenges. This pedagogical approach transforms learners into active participants in their own educational journey, while also equipping teachers with tools and strategies to inspire a new generation of STEM thinkers and problem-solvers. Through Experimento, Siemens Stiftung contributes to expanding access to high-quality education, supporting educational equity and strengthening local capacities to innovate in STEM teaching and learning throughout Latin America (Siemens Stiftung, 2023[52]).
Note: Additional information regarding Siemens’ TVET programmes is detailed in Annex 5. A.
Source: Self-reported from Siemens.
Data-driven monitoring and evaluation strengthen quality and employability outcomes
Private sector actors have strong incentives to translate their initiatives into value for their stakeholders and maintain the good reputation of their foundations and initiatives. Each of the companies studied has integrated impact tracking mechanisms to measure programme effectiveness and guide refinement. Santander collects comprehensive data on course participation, completion and user satisfaction, while Telefónica tracks skills acquisition and employability outcomes. Volkswagen evaluates its programmes through feedback loops with educational institutions and monitors employment outcomes.
Monitoring and evaluation frameworks link training to employability gains
Santander has established a comprehensive monitoring and evaluation framework to assess the effectiveness of its TVET and skills development initiatives. The bank systematically collects data on course participation rates, completion levels, user satisfaction and institutional engagement to guide continuous programme refinement and ensure alignment with labour market needs.
Through platforms like Universia, Santander tracks user engagement metrics and gathers feedback that informs ongoing improvements. Employability is a central focus: in 2024 alone, over 100 800 job vacancies were posted on Universia, with 131 job portals active across Latin American, Spanish and Portuguese universities. Connecting universities, junior talent and local industries, Santander helps align education with labour market needs and support young people in securing decent employment. Survey data collected from participants reveal an average self-reported employability increase of 8.5 out of 10 after programme completion, demonstrating tangible impact. Santander also monitors outcomes from targeted initiatives, such as programmes for people with disabilities, in which over 1 100 individuals enrolled in 2024, with more than 650 receiving scholarships and training in Spain, and planned expansion in Latin America in 2025. Participants reported acquiring in-demand skills in fields such as data science, AI, programming, digital marketing, cybersecurity, leadership and language proficiency, enhancing their job readiness.
Santander’s education and skills development initiatives in Latin America are delivered primarily through strategic collaborations with higher education institutions. These formal agreements with universities enable the delivery of programmes tailored to specific national and regional priorities. Much of these efforts are channelled through the Santander Open Academy, which facilitates access to global and country-specific calls for scholarships and training programmes.
To ensure quality, Santander partners with renowned institutions, such as the British Council, Google, Harvard Business Publishing Education, the London School of Economics (LSE), Udemy and the Cambridge Judge Business School. Many programmes incorporate mentoring, tutoring and networking components to support participants’ professional development. For example, the Santander W50 Leadership Programme, developed with LSE, offers tailored leadership training for women executives.
The impact of Santander’s education and training programmes has been far-reaching. In 2024, Santander supported 2.2 million individuals and businesses globally, including 1.5 million in Latin America. Internationally, its 1 181 university partnerships and initiatives like MetaRed have engaged over 10 000 participants from higher education institutions across 18 countries.
Note: Additional information regarding Santander’s TVET programmes is detailed in Annex 5.A.
Source: Self-reported from Santander.
Strengthening adult learning systems in LAC is essential to expand access to high-quality training and employment opportunities, and support sustainable economic development. The four firm case studies presented in this chapter provide valuable lessons not only for other EU and international companies investing in the region, but also for LAC governments and VTIs. Their findings align closely with OECD recommendations and priority action areas for enhancing adult learning systems:
1. Align training with labour market needs
a) Develop digital literacy and skills. Several countries, including Uruguay, Peru and Argentina, have implemented National Digital Literacy or Inclusion Plans. Initiatives like Digital Talent for Chile focus on training vulnerable groups in digital skills for quality jobs (OECD, 2021[2]).
b) Provide training for in-demand jobs and target adults whose skills are most at risk of becoming redundant. This is crucial given the high rate of skills mismatch in Latin America compared to OECD countries and the large share of the population lacking basic skills (OECD, 2021[2]).
2. Promote gender equity in TVET and STEM careers
a) Expand scholarships and support for girls, particularly in rural and disadvantaged areas, to encourage their participation in STEM (OECD, 2025[3]).
b) Promote STEM participation through mentorship initiatives and awareness campaigns. Showcasing female STEM professionals and providing mentorship, as demonstrated in Peru, can positively influence girls' aspirations (OECD, 2025[3]).
3. Increase participation and inclusion in adult learning
a) Offer an integrated approach to training, particularly for vulnerable groups. This is essential as those who need upskilling and reskilling the most, such as low-skilled adults, older adults, women, informal workers and employees of SMEs, are often the least likely to participate in training (OECD, 2021[2]).
b) Address financial and time barriers to participation. High costs are a significant barrier, with approximately 24% of adults in Latin American countries who wanted training not participating due to expense compared to 16% in OECD countries (OECD, 2020[1]).
4. Leverage technology for learning and training
a) Boost connectivity and Internet adoption as first step. Digital divides, influenced by socio-economic background, gender, age and territory, are big obstacles (OECD, 2020[1]).
b) Ensure the quality of digital tools and ICT infrastructure. Investments should balance expanding access with enhancing the quality and relevance of digital technologies, aligning them with teaching and learning needs (OECD, 2020[1]).
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The German multinational car manufacturer Volkswagen established its Mexican subsidiary, Volkswagen de México, in 1964 to manage manufacturing, sales and distribution across Mexico and Latin America. Based in Puebla, this subsidiary has made TVET a strategic pillar of its business model and industrial growth. A pioneer in the automotive industry in implementing the German dual training model, Volkswagen de México has trained specialists for production and engineering roles since 1966, helping build a highly qualified workforce. Volkswagen de México has invested in multiple TVET initiatives to boost employability in Mexico. Key programmes include:
Dual Training Centre (CFD): A flagship of dual training in the Mexican automotive industry, with nearly 60 years of continuous operation. It currently offers a mechatronics programme in Puebla in partnership with the Technological University of Puebla (UTP).
New Auto; New Engineers – Innovation in Motion: An initiative targeting students and teachers from middle and high schools near the Puebla and Silao plants.
Alliance with the College of Scientific and Technological Studies of the State of Guanajuato (CECyTE) (via the Volkswagen Group Academy Mexico – VWGAM): Promotes dual training for students in Guanajuato, enabling them to work at the Silao engine plant.
Alliance with IBERO Puebla University (via VWGAM): Supports a dual degree programme in Industrial Mechanical Engineering.
For the Love of Mexico Programme: A CSR initiative promoting science, technology, engineering and mathematics (STEM) education. Over 1 175 students participated in workshops between 2023 and 2024.
These initiatives reinforce technical education, stimulate early vocational interests and improve local employability in high-value sectors. Volkswagen de México promotes a diverse, inclusive and growth-oriented workplace. As of May 2025, the company employs nearly 13 000 people across its two production centres: the vehicle plant in Puebla and the engine plant in Silao, Guanajuato. Its organisational structure ensures efficiency, qualit and innovation, backed by a highly skilled workforce aligned with Volkswagen Group's international standards.
Volkswagen de México engages in strong public-private partnerships, including higher education institutions, NGOs, and foundations. Notable partners include UTP, Fundación Juconi México A.C., Fondo Unido IAP, Fundación Merced, the Meritorious Autonomous University of Puebla, the Ibero-American University (IBERO), and the CECyTE Guanajuato. These alliances have supported the growth of the CFD, science, technology, engineering and mathematics (STEM) workshops, and other social impact projects.
Through its For the Love of Mexico CSR programme, Volkswagen de México reached more than 23 000 people in 2024, focusing on STEM education. A standout initiative, Accelerate Change, was implemented with Fundación Merced to fund selected STEM projects which up to MXN 400 000. In the same year, STEM-focused workshops were launched for middle and high school students near its production sites in Cuautlancingo, Puebla and Silao, Guanajuato as part of the New Auto; New Engineers – Innovation in Motion programme, a forward-looking initiative that underscores the company’s commitment to inclusive, equitable and quality education.
Additional training programmes and implementation processes
Innovation in Engineering: New Auto; New Engineers – Innovation in Motion
This initiative delivers practical workshops in areas such as automotive engineering, sustainable mobility, decarbonisation, safety, resource conservation, renewable energy and energy storage. The programme targets students and teachers throughout the academic year and culminates in an engineering fair where students present their projects, promoting real-world application of acquired knowledge. Volkswagen de México assesses the programme's impact using surveys, focus groups and interviews for feedback, allowing for the continuous improvement and effectiveness of the programme.
Bridging Academia and Industry: IBERO Puebla Alliance
Volkswagen de México and IBERO formalised a collaboration agreement in 2022 to promote education, research and talent development. In 2024, VWGAM and IBERO launched a university-industry dual bachelor’s degree in Industrial Mechanical Engineering, which currently enrols 15 students – 5 from the first cohort and 10 from the second. Graduates acquire in-demand skills in mechanical design, sustainable manufacturing, production techniques, metal-mechanical processes and materials science. Students split their time between academic studies and practical training at the CFD, ensuring real-world industrial application of theoretical knowledge.
Challenges and lessons learned
Attracting young people to technical disciplines has required awareness campaigns and complementary social investment. STEM careers – often called the “skills of the future” – are expected to account for 7 out of 10 job opportunities in the coming decades, according to Volkswagen de México. Considering this, the firm is addressing the challenge of fostering interest in these fields among primary and secondary school students, and their parents.
A major challenge has been adapting the German Dual Education Model to the Mexican education system. Differences in academic calendars, teaching methods, local regulations and the availability of highly qualified instructors have required continuous adjustments and open dialogue among stakeholders.
Volkswagen de México has addressed these barriers through strategic partnerships, particularly with technical universities, business organisations and bi-national chambers such as CAMEXA. This has enabled the development of a hybrid model tailored to Mexico’s context, while maintaining international technical standards. The implementation of dual TVET programmes has revealed several important lessons:
Cultural and educational adaptation requires active listening and close collaboration with local institutions
The need to promote technical vocations from an early age, especially in communities located near industrial hubs
Continuous evaluation and inter-institutional dialogue allow improving the relevance and effectiveness of educational programmes
Investing in teacher training and providing adequate practice facilities is vital to maintain high-quality instruction and support advanced learning outcomes
These insights form the foundation for sustaining and scaling technical education initiatives.
Results
Volkswagen de México’s educational and social initiatives have had a transformative impact on both the organisation and local communities. It has built a specialised technical talent ecosystem, supporting its role as a world-class industrial hub. Graduates not only contribute to the company’s internal workforce, but also enhance the capabilities and quality standards of the local supply chain.
Internally, it has fostered a corporate culture of learning, inclusion and innovation, contributing to long-term sustainability and equity in the production environment. Key milestones include:
nearly 6 000 CFD graduates in mechatronics
over 70 graduates from the Silao engine plant-CECyTE dual programme
CSR outreach to more than 23 000 individuals in 2024
recognition as a Top Employer 2025 and inclusion in the 2024 Merco ESG Responsibility Ranking
certification under the Mexican Standard NMX-R-025-SCFI-2015 for Labour Equality and Non-Discrimination.
These efforts have increased youth employability, reduced employee turnover and raised technical standards, boosting productivity and product quality. Local sourcing contributes to logistical efficiency, cost competitiveness, regulatory compliance and regional development. By actively investing in TVET programmes and reinforcing the local supply chain, the company re-affirms its long-term commitment to economic growth, job creation and manufacturing excellence in Mexico.
Telefónica is a Spanish multinational telecommunications firm and one of the largest telephone operators and mobile network providers in the world (Telefónica, 2025[30]). The company has operated in Latin America for over 35 years, beginning its international expansion in Chile in 1989. Today, 8 of the 11 countries in which it operates are in Latin America: Brazil, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay and Venezuela.
Through its foundation, Telefónica promotes digital inclusion across four key pillars: reducing the education gap, improving employability, fostering social and digital integration, and promoting art, culture and critical thinking. In anticipation of the opportunities and challenges brought by digitalisation, the company offers free training programmes to support people throughout their lives. These include educating children on digital skills and responsible technology use, training young people and adults for careers in the digital economy and helping older adults keep pace with technological advancements. Telefónica advocates for the responsible use of technology and is committed to an ethical approach to artificial intelligence (AI) that creates opportunities for all, always placing people at the centre. AI plays a central role in many of the Foundation's initiatives, underpinning projects in education, art and culture, social action, volunteering and employment-focused training.
As part of its strategy, Fundación Telefónica leverages public-private partnerships to expand the reach and sustainability of its projects. Operating in 30 countries with a transformative mission, the Foundation addresses individual needs, while contributing to the economic, social and cultural development of communities. Its social impact – defined by the number of people who directly or indirectly benefit from its TVET initiatives – has reached 16.2 million.
A key example of Telefónica's commitment to lifelong learning is Skills Bank, which focuses on identifying and developing AI-related capabilities within the organisation (UNESCO, 2024[54]). The company has updated its learning model to personalise and tailor training offerings to the preferences and existing skills of each professional. Another flagship initiative is Universitas, Telefónica’s corporate university, which offers both in-person and online courses in digital and human skills (Fundación Telefónica, 2022[55]). This unique platform provides customised training for all employees and includes specialised courses for executives and managers to strengthen leadership capabilities.
In Brazil, for instance, Telefónica (operating as Vivo) delivers comprehensive training and development programmes to foster innovation and employee growth. Vivo Explore, a dedicated development centre, offers resources on both soft and technical skills, structured around four pillars: human skills, leadership, creativity and technology. The Track Future Professional programme aligns with key competencies identified by the World Economic Forum. Meanwhile, Explore+ and Explore+ Leadership provide educational subsidies, enabling employees to pursue undergraduate and postgraduate degrees, certifications, language courses and more – with up to 100% of tuition reimbursed. Through Galena Educational Partnerships, employees can access free learning content and receive discounts of up to 80% on courses from partner institutions. Tech Mind delivers leadership training in emerging technologies, such as AI, Big Data, Internet of Things and Cloud computing. The Women's Leadership Programme is tailored for women in executive roles, while Xponetial Business Administration provides executive education with a focus on innovation and future technologies.
Telefónica also supports TVET pathways for incoming talent. The Trainee Programme identifies and accelerates top future talent in strategic areas, with a strong emphasis on leadership and inclusion. It offers MBA opportunities, job rotations, mentoring, shadowing and project pitching. The Internship Programme helps university students develop technical and behavioural skills, with a focus on supporting women of colour. The Young Apprentice Programme promotes social inclusion by developing young talent and supporting functional quota compliance, contributing to long-term business sustainability.
Telefónica also views diversity as a key driver of talent and is committed to creating inclusive, accessible environments where everyone can thrive. Targeted initiatives include specialised training and recruitment programmes for people with disabilities, mentorship for women and minority groups, and support measures for LGTBQ+ and older employees. By expanding access to leadership and fostering the development of underrepresented groups, Telefónica contributes to more inclusive labour markets and helps reduce inequalities.
To strengthen gender diversity, Telefónica actively promotes internal TVET initiatives that support the development and leadership of women across the organisation. It links 5% of employees’ variable compensation to the proportion of women in executive roles. Core actions include ensuring pay equity, increasing women’s participation in science, technology, engineering, arts and mathematics (STEAM) and digital fields, promoting work-life balance and advancing women into leadership positions. In 2025, women hold 34% of executive roles globally, with a target of 37% by 2027. In Latin America, women represent 33.6% of executives in Brazil and 35.5% in Hispanic America. Telefónica also offers mentoring programmes and support networks to facilitate women’s career advancement.
In Brazil, initiatives such as Women in Leadership, Leadership Academy and Women in Technical Fields are central to these efforts – 284 women in STEAM fields have participated in the Leadership Academy alone. In Hispanic America, programmes like Futura and Womentech provide certified leadership training to equip women with the tools and confidence to advance professionally. To achieve these objectives, Telefónica leverages a strong network of strategic partnerships. In Brazil, for example, it is part of Movimento Mulher, a business coalition advocating for racial and gender equality, and the prevention of violence against women and girls.
Training plays a key role in fostering inclusion. Telefónica addresses topics like valuing differences, unconscious bias and inclusive leadership through workshops and online courses. Specialised training is also provided to key staff to embed inclusive practices throughout the organisation. Telefónica’s internal training efforts extend to other companies in its value chain. One notable example is the Mujeres en Red (Women in Network) programme, launched in Peru in 2020 to tackle the underrepresentation of women in technical telecommunications roles – an area historically dominated by men (Telefónica, 2023[56]).
Mujeres en Red: Implementation process
Launched in 2020 in partnership with contractor companies, Mujeres en Red aims to improve the employability of women in technical telecommunications roles and challenge gender stereotypes in the sector. This training programme reflects Telefónica’s commitment to ‘’making the world more human by connecting people’s lives,’’ a vision that depends on diverse talent at every level of the organisation. As part of Telefónica’s broader sustainability strategy, the initiative prioritises gender equity and is closely aligned with its core business objectives.
The programme is structured around five core pillars:
1. Recruitment and selection: Partner companies oversee recruitment and hiring of female technicians, supported by allied organisations and targeted outreach via social media.
2. Training: Women receive technical, practical and emotional training, with emotional support also extended to male colleagues to encourage workplace allies for gender equity.
3. Safety: Telefónica audits its contractors to ensure compliance with safety standards and labour regulations, particularly those affecting gender equity.
4. Indicators: The programme tracks key performance indicators, such as customer satisfaction and productivity, with continuous improvement plans informed by the data.
5. Communication and positioning: Success stories are promoted across various channels to inspire more women to enter the field.
Challenges and lessons learned
Mujeres en Red was not modelled on European education systems and its implementation in Peru has been tailored to local realities in the telecommunications sector. One of the main challenges has been overcoming the stereotype that technical roles are exclusively for men. Mujeres en Red has demonstrated that women can – and should – thrive in technical roles, breaking long-standing barriers and expanding their career horizons.
Strategic partnerships have been essential to the programme’s success. Collaborations with contractor companies are critical for the recruitment, training and professional development of participants, while partnerships with educational institutions help identify and promote female talent in technical fields.
Banco Santander, one of Spain’s largest financial institutions and a leading banking group in Europe and Latin America, is widely recognised not only for its financial services, but also for its long-standing commitment to social responsibility and inclusive development. For nearly 30 years, Santander has embedded skills development and employability into its social investment strategy, focusing on three key pillars: education, employability and entrepreneurship. In 2024 alone, the bank allocated EUR 104 million to these areas, with approximately EUR 20 million directed specifically to Latin America – including Mexico, Brazil, Chile, Argentina and Uruguay – underscoring the region’s strategic importance in Santander’s global social investment agenda.
Santander also promotes social inclusion through Fundación Universia, which offers tailored scholarships and training for individuals with disabilities and those at risk of social exclusion (Fundación Universia, 2025[57]). While currently active only in Spain, the foundation is expanding to Latin American countries in 2025. All other aforementioned initiatives – Santander Open Academy, Universia, MetaRed and Campus Digital – are already fully operational and scaled across the region.
Challenges and lessons learned
Despite the programme’s reach, several challenges persist. The digital divide remains a barrier as disparities in Internet access and technology infrastructure hinder the delivery of digital training across some parts of the region. Adapting content and delivery methods to diverse local contexts, socio-economic realities and regulatory environments also requires considerable flexibility.
Ensuring social inclusion – that programmes effectively reach vulnerable populations and individuals with disabilities – demands sustained outreach and tailored programme design. Additionally, measuring long-term impact, such as employability and initiative sustainability, proves complex and often necessitates multi-stakeholder co-ordination.
To address these challenges, Santander emphasises co-creation with local stakeholders, including universities, public authorities and private partners to ensure alignment with required skills. Collaborative platforms like MetaRed facilitate the exchange of best practices, and support digital transformation and institutional innovation. Another key lesson learned is the value of flexible delivery models – online, hybrid, and in-person – to maximise accessibility. The bank also continues to expand initiatives for vulnerable groups, recognising the potential for high-impact, inclusive outcomes.
Results
Santander’s efforts have also contributed to reducing educational dropouts due to hardship through financial aid and increased equitable access to higher education and international mobility. This has thus contributed to reducing inequality and bridging the skills gap in Latin America. The bank also promotes gender inclusion through programmes like the Santander W50 Leadership Programme, which supports the advancement of women into leadership positions. Finally, the availability of training in technological skills has helped reduce the digital divide, facilitating broader participation in the knowledge economy and contributing to more inclusive socio-economic development across the region.
By embedding skills development into its social investment strategy and strengthening ties between universities, students and industries, Santander reinforces its commitment to inclusive growth, talent development and sustainable value creation in Latin America.
Siemens is a German multinational technology company, with a focus on infrastructure, healthcare, transport and industry fields. The firm believes that, in times of technological development, TVET in science and technology is not only a cornerstone of the firm’s future success, but also s key factor for creating jobs and ensuring prosperity (Siemens Stiftung, 2018[58]). Primarily through its independent foundation Siemens Stiftung, Siemens has been implementing international initiatives that contribute to social development (UNESCO, 2025[59]). In 2020, 10,400 young professionals – among which 70% in Germany – were enrolled in dual training at Siemens (Siemens, 2020[60]). These programmes provide training across commercial and technical disciplines, introducing key digitalization topics – such as data analytics, software development, and cybersecurity – into the curricula for all apprenticeships and dual training programmes. A key priority of these TVET programmes is fostering the responsible use of digital technologies, which are profoundly reshaping both the workplace and society (Siemens, 2020[60]).
In LAC, Siemens Stiftung promotes sustainable social development by advancing STEM education and supporting the development of social innovation and education ecosystems (Siemens Stiftung, 2024[61]). Through strategic collaborations in the fields of education, social entrepreneurship, and arts and culture, Siemens Stiftung concentrates its efforts on three key thematic areas: Access to Essential Services, Connected Societies, and Climate and Sustainability (UNESCO, 2025[59]).
Additional training programmes and implementation processes
STEM regional education initiatives
Siemens Stiftung is prioritizing STEM education to enhance social development in the region (Siemens Stiftung, 2018[58]).The German firm believes that a successful education – one that achieves real impact and meaningful change – must be the result of open and dynamic collaboration (Siemens Stiftung, 2025[62]). Consequently, Siemens Stiftung initiated the STEM Network Latin America: a regional network comprising over 200 institutions from 14 countries, including universities, NGOs, and international organizations like UNESCO (Siemens Stiftung, 2023[63]). On January 29th, 2023, the Declaration of Monterrey was signed by 115 representatives from 63 institutions from 12 countries aiming to ‘’shape committed, responsible, and empathetic citizens who actively contribute to building sustainable communities and territories’’ (Siemens, 2023[64]). Siemens and its partners pursue this goal by promoting STEM education as a transformative and innovative approach to holistic learning (Siemens, 2023[65]).
The Network collaborates to provide and refine quality STEM educational content, training programmes, and to advocate for STEM education among policymakers and educators. It is structured around eight thematic working groups: sustainable development and climate change, design thinking, technical education, gender, computational thinking, health, financial education, and early childhood (Siemens Stiftung, 2023[66]).
In support of its mission, the Network advances five strategic objectives:
1. fostering inclusive dialogue and collaborative action to promote quality education that supports equity and social transformation in Latin America
2. promoting pedagogical innovation to generate relevant and meaningful learning experiences
3. strengthening local and regional capacities for educational innovation grounded in the STEM approach
4. advancing the open education movement to expand access to knowledge and resources
5. producing and disseminating evidence-based knowledge to inform educational transformation through research and systematization (Siemens Stiftung, 2023[63]).
The Network also organizes annual meetings (e.g., IV Encuentro in Cali) to set regional priorities and promote inclusivity, digitalization, and sustainability in education. These gatherings facilitate the exchange of best practices in public policy, educational management, and pedagogy, while also providing an intersectoral platform for sharing and amplifying STEM education initiatives (Siemens Stiftung, 2025[62]). In collaboration with these partners, Siemens implements education projects with a focus on STEM+ – a holistic approach that, in addition to science and mathematics, integrates communication and collaboration skills, creative and critical thinking, and intercultural understanding. This comprehensive framework equips children and young people with the tools they need to navigate the future (Siemens Stiftung, 2024[61]). Four education and training initiatives stand out: STEM Education for Innovation, Open Educational Resources Centre for STEM teaching, Experimento, and Experimento Blended.
STEM Education for Innovation
In response to the COVID-19 pandemic, which evidenced the need for digital teaching, Siemens launched the STEM Education for Innovation initiative (Siemens, 2022[67]). This initiative aims to address the current global challenges – such as climate change, digitalization and health –, by providing online open educational resources for students and teachers on STEM subjects. Operating in seven countries in LAC (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, and Peru), this programme supports 14 projects in digital transformation (Siemens, 2022[67]), leading to the following achievements:
Creation of the Open Educational Resources Centre (CREA): over 400 open-license digital teaching materials for all education levels to foster accessible STEM education. These materials provide suggestions for STEM teaching and elements to stimulate students’ learning in STEM.
Establishment of Redecanedu, a collaborative network connecting deans of 44 universities in 13 countries.
Formation of virtual learning communities for teachers in six countries.
Certified learning programmes and regional workshops for teachers on STEM subjects, climate change, health, and sustainability.
In 2021, more than 300 000 teachers participated in web-based seminars on innovative STEM content and methods, impacting hundreds of thousands of students in seven LAC countries.
Additionally, in collaboration with Siemens Foundation Argentina, the Solid Edge for Social Impact project – part of the STEM Education for Innovation initiative – enhances technical education in secondary schools by emphasising digital skills development and offering international certifications in technical and digital competencies (Siemens Stiftung, 2024[68]).
Open Educational Resources Centre
Additionally, one of Siemens Stiftung’s key objectives is to ensure that an increasing number of people have free access to quality STEM education. Consequently, Siemens launched CREA, which provides free public access to over 1,800 STEM teaching materials and training courses, including climate change education, robotics, and computational thinking (Siemens Stiftung, 2025[62]; 2025[69]). The platform is a central hub for distributing STEM resources developed by Siemens Stiftung and its partners, supporting both teachers and students throughout Latin America (Siemens Stiftung, 2025[69]). By continuously investing in the development and dissemination of open educational resources, Siemens is helping expand access to quality education and promote equal opportunities for all (Siemens Stiftung, 2023[70]).