Published on Thursday, May 28, 2026

Mexico | Labour poverty drops to 30.7%, its lowest level in 21 years

Summary

This report analyzes the latest update of labour poverty indicators in Mexico for the first quarter of 2026. It highlights that this indicator reached its lowest level since 2005, driven by higher labour income. In addition, the report examines regional disparities, labour informality, and wage gaps.

Key points

Key points:
Labour poverty in Mexico decreased to its lowest level in 21 years, reaching 30.7% of the population. In urban areas, this indicator stood at 26.9%, while in rural areas, it declined to 44.2%.
From 2025-Q1 to 2026-Q1, 26 states reduced their share of population in labour poverty by an average of 3.4 pp, while the remaining states recorded an average increase of 1.2 pp. Among the latter, Chiapas not only remained the state with the highest poverty level in the country but also recorded the largest deterioration during the period (+1.7 pp), contributing to wider regional disparities.
States with higher levels of labour informality also tend to concentrate on higher levels of labour poverty. Notable examples include Chiapas (60.8% labour poverty and 75.3% informality), Oaxaca (52.7% and 79.9%), and Guerrero (47.7% and 76.4%).
Labour income, which tracks the evolution of labour poverty among the employed population, recorded an 18.9% increase in real terms during the first quarter of 2026 compared to the same period in 2023. However, significant gaps persist across employment sectors; notably, the primary sector exhibits the lowest wages, both nationwide and in 27 out of the 32 states.
For labour poverty to continue declining, labour income per capita growth must remain above the increase in the cost of the food basket. To achieve this, it is essential to promote investment in the country, currently in contraction, so that it translates into higher productivity and the creation of better-quality formal jobs.