Introduction
The legislative clock has started ticking again with the commencement of the regular session in Mexico’s Congress on Sunday, signaling the time for discussion and approval of the 40-hour workweek reduction reform. Although this reform, championed by Claudia Sheinbaum’s government, has generated significant anticipation, its impact will not be uniform due to the unique characteristics of Mexico’s labor market and the substantial presence of the informal economy, which remains unaffected by any changes to the Federal Labor Law.
Scope of Beneficiaries
According to a report by the Economic Analysis area of Banorte, based on ENOE data, the target population for this reform is approximately 15.9 million people, or 26% of those participating in Mexico’s labor market. These individuals are formally employed, have only one employer, and currently work more than 40 hours per week.
However, the Secretariat of Labor has a more conservative estimate, suggesting that 13.4 million workers—those with salaried positions exceeding 40 hours per week—would benefit. Meanwhile, around 9.6 million formal workers already working 40 hours or fewer weekly would not see changes in their work arrangements following the proposed legal amendments.
The primary constraint on the reform’s beneficiaries is the significant role of informality in Mexico’s labor market. Those employed under this condition are legally unprotected, lack employment contracts, and have no access to social security.
Including these individuals in the workforce calculation would double the beneficiaries to 31.3 million people with an employer, regardless of formality, exceeding the proposed federal government margin of weekly working hours. This would account for 52% of Mexico’s labor force.
Impact by Sectors and Regions
Following the same methodology, sectors with a higher proportion of workers exceeding 40-hour workweeks—and thus more likely to benefit from the reform—are corporations (62%), mining (59%), and wholesale trade (54%). Conversely, education (6%), primary sector (9%), and construction (15%) have lower proportions.
At the state level, the potential impact of reducing workweek hours is uneven. Entities with a strong industrial profile, such as Coahuila (44%), Nuevo León (42%), and Chihuahua (41%), have the highest percentages of formal workers with excess 40-hour workweeks.
Even in states with the largest populations employed, the reform’s reach varies significantly. While Nuevo León has 42% of workers with excess 40-hour workweeks, Jalisco (32%), the State of Mexico (27%), and Mexico City (24%) have lower incidences, potentially projecting a more substantial reform effect in mid-sized industrial regions rather than large metropolitan areas.
In all these cases, apart from each region’s unique economic inclination, the informality’s weight is a crucial exclusionary factor.
Key Questions and Answers
- Who will benefit from the 40-hour workweek reform? Primarily, formal workers with one employer who currently exceed 40 hours per week. However, including informal workers could double the beneficiaries to 31.3 million.
- Which sectors will see the most significant impact? Corporations, mining, and wholesale trade, with 62%, 59%, and 54% of their workforce, respectively.
- How will regional differences affect the reform’s impact? Industrial-focused states like Coahuila, Nuevo León, and Chihuahua will see greater benefits. Meanwhile, states with larger populations, like Jalisco, the State of Mexico, and Mexico City, may experience less impact.
- What challenges does informality pose to the reform? Informality excludes a significant portion of workers from potential benefits. If formal employment becomes more expensive and less accessible, informality may further proliferate.
