Mexico | Inflation wipes out progress in reduction of labor poverty

After three consecutive quarters of decline, the percentage of population living in labor poverty increased by 1.8 percentage points (from 38.3% in 2Q 2022 to 40.1% in 3Q 2022), caused by the drop in average labor income and the increase in food-basket prices.

Key points

• Key points:
• In the third quarter of 2022, 40.1% of the population in Mexico was in labor poverty, a level higher than the one observed before pandemic in third quarter of 2019, when the indicator was 39.6%.
• By the third quarter of 2022, in the rural area, the indicator of labor poverty is better than before pandemic, while at urban area it is worse than before the COVID-19 crisis.
• From second to third quarter of 2022, real labor income of workers fell 2.5% and prices of 86% of the products in the food basket increased.
• Nationwide, average earnings gap between women and men was 19.1% lower for women in third quarter of 2022.

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