Mexico Demonstrates Social and Labor Policies Reduce Poverty: ENIGH 2024 Results Confirm Impact on Low-Income Households

Web Editor

August 1, 2025

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Introduction

The results of the ENIGH 2024 survey confirm what was widely anticipated: the labor and social policies implemented over the past few years have had a tangible and measurable impact on the lives of low-income households. For the first time in a long while, the figures not only show growth in average income but also a significant reduction in inequality and a decline in poverty.

Key Findings

  • Income Distribution: Between 2016 and 2024, the share of the top 10% of the population in total income fell from 36.4% to 30.3%, while the bottom 10% increased from 1.8% to 2.2%. These relative increases are substantial for such a short period, indicating that wage increases, labor regulations, and expanded social programs have had concrete redistributive effects.
  • Sustainable Economic Model: These policies have not destabilized national public finances, unlike the 1980s. The misconception that more generous transfers, wage increases, and stricter labor rights enforcement would lead to inflation and harm economic competitiveness has been debunked. Instead, Mexico’s economic growth this year, despite global trade slowdowns, is partly attributed to the robust domestic consumption, supported by increased incomes, especially among lower-income individuals.
  • Future Challenges: Although progress has been made, Mexico must strive for higher growth rates as outlined in Plan México. This involves capitalizing on industries with comparative tariff advantages, such as pharmaceuticals, medical supplies, electronics, home appliances, chemistry, electromobility, and semiconductor-related sectors. Additionally, revitalizing industries where import substitution is possible (e.g., textiles and footwear) or fostering high-potential sectors like agroindustry is crucial. Public investments and private sector coordination in electricity, petrochemicals, and infrastructure are also vital for sustained growth.
  • Regional Disparities: The survey highlights persistent regional income disparities, with the average income of Mexico’s wealthiest states nearly tripling that of the poorest. This necessitates job creation in underdeveloped regions and a regional industrial policy that attracts investment and higher-value activities to these areas.

Key Questions and Answers

  1. Question: What do the ENIGH 2024 results indicate about Mexico’s social and labor policies?
  2. Answer: The results confirm that these policies have had a tangible and measurable impact on low-income households, reducing inequality and poverty while promoting sustainable economic growth.
  3. Question: How have these policies affected income distribution in Mexico?
  4. Answer: The share of income for the top 10% has decreased, while the bottom 10% has seen an increase, demonstrating redistributive effects.
  5. Question: What are the future challenges for Mexico’s economic growth?
  6. Answer: Mexico must aim for higher growth rates by focusing on industries with comparative advantages, revitalizing import-substitution sectors, and fostering public-private investments in strategic areas.
  7. Question: How do regional income disparities factor into Mexico’s economic landscape?
  8. Answer: There are significant income disparities between Mexico’s wealthiest and poorest states, necessitating job creation and regional industrial policies to attract investment and higher-value activities in underdeveloped regions.