Mexico | Inflation wipes out progress in reduction of labor poverty

Summary

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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