Understanding Poverty Wages in Mexico
Approximately 32 million people in Mexico earn insufficient incomes to meet their basic needs, a phenomenon known as “poverty wages.” Morelos leads the list with the most workers facing this situation, according to the Ranking estatal de los indicadores clave de precariedad y exclusión laborales by the Acción Ciudadana Frente a la Pobreza (ACFP).
These poverty wages are defined as incomes that cannot cover two basic necessity baskets, implying an inability to acquire essential items for a decent life.
Top 5 States with the Highest Proportion of Workers on Poverty Wages
- Morelos (85%)
- Estado de México (82%)
- Puebla (81%)
- Chiapas (80%)
- Oaxaca (78%)
Top 5 States with the Lowest Proportion of Workers on Poverty Wages
- Zacatecas (26%)
- Baja California Sur (40%)
- Baja California (42%)
- Nuevo León (45%)
- Coahuila (45%)
Rogelio Gómez Hermosillo, ACFP’s executive president, emphasizes that discussing poverty without addressing labor precariety and exclusion is a significant oversight, failing to understand poverty’s origins.
“In all entities, there are people who lack sufficient wages, lack social security, have no employment, or are excluded from care work. There is no distinct identity standing out for the better, and that’s concerning,” he states.
Gómez Hermosillo points out that Mexico has experienced moderate economic growth phases where labor indicators changed little, and poverty rates adjusted marginally.
“The notion that economic growth reduces poverty and improves job quality is incorrect. If the economy doesn’t grow, and employment opportunities don’t increase, poverty and precariety worsen. When economic conditions are poor for people, they fare even worse,” he highlights.
Security Social Access and Poverty Link
Access to social security is the gateway to healthcare services for working individuals and their families. In Mexico, 35 million people work without access to a social security institution.
“These precariety and exclusion data from work are at the core of Mexico’s poverty, with a direct relationship. The lack of social security and insufficient income are work-related deficiencies producing ‘poverty factories,’” Gómez Hermosillo asserts.
Additional relevant data includes 12 million people working without benefits, 14 million with excessive work hours, and 18 million engaged in uncontracted work.
No Social Program Can Replace Work
Gómez Hermosillo insists that generating more well-paid jobs is crucial to significantly reduce poverty in Mexico, as social programs only provide temporary relief.
“Mexican household income primarily stems from work—75 centavos of every peso come from employment. If we don’t fix work, we can’t fix poverty. No social program or government monetary transfer can replace work as a sustainable solution against poverty,” he asserts.
He adds that the working conditions across Mexico create poverty at varying levels, with no state having favorable indicators. The aim is to highlight the working conditions that generate poverty and inequality in Mexico, showing labor exclusion and precariety as the root causes affecting women and young people disproportionately.
Gómez Hermosillo emphasizes that equitable growth depends significantly on inclusive economic improvement, based on productivity and dignified work, ensuring adequate remuneration and fair labor conditions.
Key Questions and Answers
- What are poverty wages? Poverty wages are incomes insufficient to cover basic necessities, failing to provide a decent life standard.
- Which states have the highest proportion of workers on poverty wages? Morelos (85%), Estado de México (82%), Puebla (81%), Chiapas (80%), and Oaxaca (78%).
- Which states have the lowest proportion of workers on poverty wages? Zacatecas (26%), Baja California Sur (40%), Baja California (42%), Nuevo León (45%), and Coahuila (45%).
- Why is addressing labor precariety crucial to understanding poverty? Discussing poverty without labor conditions overlooks its origins, as many people lack sufficient wages, social security, or face exclusion from care work.
- How is social security access linked to poverty? Access to social security enables healthcare for working individuals and their families. In Mexico, 35 million people work without such access, contributing to poverty.
- Can social programs replace the need for better-paid jobs? No, as work is the primary source of income for most Mexican households. Social programs offer temporary relief, but not a sustainable solution to poverty.
