Portugal Strengthens 25th Position in IMD World Talent Ranking. The country shows significant improvement in the "Readiness" factor despite declines in "Investment & Development" and "Attractiveness" indices.
Portugal has maintained its 25th position in the 2024 IMD World Talent Ranking, the same as last year. The results, released today by the IMD, were developed in partnership with Porto Business School, which has been the exclusive partner for the preparation of the ranking for Portugal for the ninth consecutive year. Despite a significant improvement in the "Readiness" factor, the country experienced a decline in the "Investment & Development (I&D)" and "Attractiveness" indices this year. It’s worth noting that the ranking is led by Switzerland, Singapore, and Luxembourg, the three most competitive economies in talent globally among the 67 countries analyzed.
According to the 2024 IMD World Talent Ranking, Portugal maintained its competitive position largely due to a six-place rise in the "Readiness" category, now ranked 21st globally. Notable improvements include "management education," which climbed nine positions (11th in 2024, compared to 20th in 2023), and "language skills," which continue to meet business needs, ranking 9th globally. However, the ranking also points to areas for improvement, such as "international experience" and the "competence of available senior managers."
On the other hand, the "Investment & Development (I&D)" factor continued to decline. After ranking 22nd in 2022, Portugal fell to 27th in 2023 and further to 29th in 2024, due to slight reductions in the "student-to-teacher ratio in primary and secondary education," despite good performance in secondary education. "Female participation in the workforce" remains a national strength, holding 5th place globally. However, "employee training" continues to be the main weakness, ranking 61st, making it a priority for companies.
Finally, the "Attractiveness" factor has seen the most significant drop, with Portugal now ranked 45th, after placing 37th in 2023, 40th in 2022, and 30th in 2021. This trend is driven by the increasing "brain drain," which is affecting the economy's competitiveness (54th in 2023 vs. 64th in 2024), and the "administration of justice," which fell from 57th to 62nd. However, "worker motivation" showed a largely positive increase, rising 16 positions, from 57th to 41st. Additionally, "lower pollution exposure" continues to be the strongest aspect of the country's attractiveness, ranking 12th worldwide.
For José Esteves, Dean of Porto Business School, which for the ninth consecutive year is the exclusive partner of the IMD for Portugal in preparing the ranking, "Portugal's continued 25th place in the IMD World Talent Ranking reflects our ability to improve in areas such as management education and language skills. However, challenges in investment, development, and attractiveness require a swift response. It is therefore urgent that Portuguese companies invest more in the continuous training of their employees, especially in the context of the transformations brought by Artificial Intelligence. At Porto Business School, we focus on preparing leaders who not only tackle these challenges but also seize the opportunities offered by the technological revolution and continuous education."
Switzerland, Singapore, and Luxembourg Lead. AI’s Socioeconomic Impact
Switzerland, Singapore, and Luxembourg have been determined to be the most competitive countries in terms of talent by the IMD World Talent Ranking. Additionally, the 2024 report that accompanies the ranking—"The Socioeconomic Implications of AI in the Workplace"—also highlights increasing inequality in higher-income economies, as early adoption of Artificial Intelligence (AI) begins to replace the workforce.
In its 11th edition, the ranking evaluated 67 countries, combining data from the IMD World Talent Ranking with external sources, while contextualizing the results with findings from the International Labour Organization (ILO).
The report concludes that economies where senior executives perceive AI as more visible in the workplace, replacing people, are also those where discrimination is rising. These economies—identified as high-income (Japan, Thailand, Singapore, the UK, and Canada)—are therefore more likely to undergo significant changes in the early stages, i.e., during AI adoption, and to reap the benefits of AI in the long run.
According to the same report, rising levels of discrimination could tarnish the attractiveness of these economies for highly qualified foreign professionals, even if other factors remain favorable. "Discriminatory practices—whether based on race, gender, age, disability, or sexual orientation—will not help to attract and retain talent. Furthermore, attracting and retaining highly skilled talent fosters innovation and maintains an economy's competitive advantage," said José Caballero, Senior Economist at the World Competitiveness Center.
The report also addresses how AI is seen as either enhancing tasks or encouraging "quiet quitting" in different economies; the likelihood that men’s versus women’s jobs will be affected by automation; and how talent competitiveness in the AI era requires a rapid reassessment of educational systems and corporate training programs to ensure workers possess the necessary skills.
"Political and social fragmentation only makes debates about AI more complex, as it pushes us further away from consensus on the policies that should exist. These divisions are particularly pernicious when it comes to educational reform, which is integral to the best use of AI," said Arturo Bris, Director of the World Competitiveness Center.
The IMD World Talent Ranking combines 31 statistical data points and survey responses ("criteria") that cover the development, retention, and attraction of a highly skilled workforce, both domestically and internationally. Each is grouped into one of three areas—"Investment & Development," "Attractiveness," or "Readiness" ("factors").
Switzerland remains at the top, dominating in the "Investment & Development" and "Attractiveness" factors. Singapore’s steady rise is driven by its robust performance in "Readiness." Luxembourg depends on a strong "Investment & Development" approach for its talent competitiveness.
It’s also worth noting that Ghana, Nigeria, and Puerto Rico were included in the IMD World Talent Ranking for the first time this year.
More details and the full IMD World Talent Ranking report are available here.
