Mexico’s Labor and Pension Social Security Secretary Addresses Informal Employment Challenge

Web Editor

April 23, 2025

Marath Bolaños: Addressing Informal Employment Remains a Priority

Marath Bolaños, the Secretary of Labor and Social Security (STPS), acknowledged that while progress has been made in extending security social coverage to groups such as domestic workers, agricultural day laborers, and digital platform workers, there’s still a significant challenge in addressing the half of Mexico’s employed population working in informality.

Progress Made by STPS

During the National Security Social Week in the Senate of the Republic, Bolaños highlighted recent achievements: “We have made strides in protecting domestic workers and, recently, under the instructions of our President, a special chapter was added to the Federal Labor Law concerning the protection of digital platform workers.”

The Informal Employment Challenge

Despite these advancements, Bolaños emphasized that “more than half of Mexico’s employed population works in informality, meaning millions lack economic stability and access to social security.” He stressed that “formalizing employment is crucial for fostering social justice and equal opportunities in our country.”

Government Commitment and OECD Insights

Bolaños reiterated the federal government’s commitment to consolidate recent progress, combatting precarious labor conditions and ensuring all workers live with dignity. Mario López Roldán, Director of the OCDE Center for Latin America, echoed this sentiment, stating that “social security is vital for a country’s development.” He noted that while Mexico has made progress, it still lags behind other countries in social security robustness.

López Roldán pointed out that Mexico’s social spending is among the lowest, at around 10% of its GDP, compared to 27% in Spain and Italy. He emphasized that the OCDE aims to strengthen informal workers’ conditions rather than eliminate their status, focusing on enhancing their skills, rights, and capabilities.

Fiscal Revenue and Future Challenges

Bolaños acknowledged that despite progress, Mexico and other nations will face increasing challenges due to sociodemographic changes, technological advances, and climate change in the coming decades. These trends will exert additional pressure on social security and social policies.

Key Questions and Answers

  • Who is Marath Bolaños? Marath Bolaños is the Secretary of Labor and Social Security (STPS) in Mexico, responsible for addressing labor issues and extending social security coverage.
  • What is the current challenge? More than half of Mexico’s employed population works in informality, lacking economic stability and access to social security.
  • What progress has been made? STPS has extended social security coverage to domestic workers, agricultural day laborers, and digital platform workers.
  • What are the future challenges? Sociodemographic changes, technological advances, and climate change will exert additional pressure on social security and social policies.
  • What is the OCDE’s stance on informal employment? The OCDE aims to strengthen conditions for informal workers by enhancing their skills, rights, and capabilities rather than eliminating their status.