Mexico | Mexico's 40-Hour Workweek: Fewer Hours, More Technology and AI?

Summary

The proposal to reduce the workweek to 40 hours, aligned with ILO standards, could enhance productivity. However, it faces risks stemming from labor informality and the technological gap in Mexico. Artificial intelligence could play a key role in the transition, but investment is required to bridge the digital divide.

Key points

• Key points:
• The reduction of the workweek in Mexico from 48 to 40 hours could represent a significant structural shift for the economy, in line with the principles of the International Labour Organization (ILO), which has long established the 40-hour week as a benchmark for decent work and social progress.
• Reducing working hours can enhance productivity and efficiency by improving worker well-being, reducing fatigue, errors, and absenteeism. This aligns with OECD findings, which indicate that the most productive countries tend to record fewer weekly working hours.
• The implementation of the reform faces risks stemming from the structure of the labor market, including high informality and wide variation in working hours. Currently, 61.4% of formal and 55.4% of informal workers exceed 40 hours per week, while 24.7% of all salaried workers surpass the legal limit of 48 hours, posing a challenge to uniform enforcement.
• In light of the labor reform, artificial intelligence (AI) and technology represent key potential allies in facilitating the transition to a 40-hour workweek by enhancing productivity through process automation and optimization.
• Artificial intelligence (AI) and technology can support the transition to a 40-hour workweek without compromising productivity. However, their low adoption rates in Mexico pose a significant challenge: only 0.1% of microenterprises and 17.0% of large firms currently use AI. To unlock this potential, it is essential to promote investment aimed at narrowing the technological gap and enabling a more efficient and sustainable transition.

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