Introduction
Working poverty in Mexico has reached a historic low, with 33.9% of the population experiencing income from labor below the cost of a basic food basket, according to an analysis by Mexico Cómo Vamos (MCV). Currently, 44.2 million people are in this situation.
Background and Context
Working poverty is measured by the number of people with family income from labor below the price of a food basket. Since 2005, MCV has been tracking this indicator. The lowest recorded level was 34.7% in the second quarter of 2007.
In the first quarter of 2024, the working poverty rate dropped by 1.9 percentage points from 35.8% in the previous period, reaching 33.9%. This is the lowest level ever recorded.
Regional Disparities
Baja California Sur and Quintana Roo have the lowest working poverty rates, at 12.8% and 18.7%, respectively. Conversely, Chiapas, Oaxaca, and Guerrero have the highest rates, at 59.2%, 56.7%, and 50.9%, respectively.
Measurement Shift
Until the end of last year, the Consejo Nacional de Evaluación de la Política de Desarrollo Social (Coneval) was responsible for measuring working poverty. However, following the decision by the Congress of the Union to dissolve Coneval and transfer its functions to the Instituto Nacional de Estadística y Geografía (Inegi), the publication of this data ceased through Coneval.
MCV expressed concerns about the transition, stating: “In 2025, the transfer of functions and attributes from Coneval to Inegi for measuring poverty opens a period of institutional and technical uncertainty due to the lack of secondary legislation ensuring the regularity and methodology of these measurements, as well as the evaluation of social policy. The absence of normative and legislative frameworks puts at risk the methodological continuity, transparency, and critical independence that characterized Coneval.”
Key Questions and Answers
- What is working poverty? Working poverty refers to individuals or families whose income from labor is insufficient to meet the basic needs, specifically the cost of a food basket.
- What is the current working poverty rate in Mexico? The working poverty rate has dropped to 33.9%, the lowest level ever recorded since data collection began in 2005.
- Which regions have the highest and lowest working poverty rates? Baja California Sur and Quintana Roo have the lowest rates (12.8% and 18.7%, respectively), while Chiapas, Oaxaca, and Guerrero have the highest rates (59.2%, 56.7%, and 50.9%, respectively).
- Why was there a shift in measuring working poverty? The Mexican Congress decided to dissolve Coneval and transfer its responsibilities to Inegi, leading to a pause in the publication of working poverty data through Coneval.
- What concerns does MCV have regarding the transition? MCV is concerned about the lack of secondary legislation ensuring the regularity and methodology of poverty measurements, as well as the evaluation of social policy. They worry that this transition puts at risk methodological continuity, transparency, and critical independence.