Mexico | Labor poverty recovers faster in rural areas than in urban areas

As of the first quarter of 2023, labor poverty decreased by 1.1 percentage points in annual terms. Thus, 37.7% of the population in Mexico is in labor poverty, which implies that 48.6 million people cannot buy a food basket with their labor income.

Key points

• Key points:
• The rural population in labor poverty decreased to 49.6% in the first quarter of 2023, reaching a new historical minimum. In contrast, in the urban area it may take several quarters before reaching the level observed in the first quarter of 2020.
• The gap between the proportion of women and men householder, who are in labor poverty increased by 1.1pp from the fourth quarter of 2020 to the first quarter of 2023 (from 4.9pp to 6.0pp)
• The gap between the proportion of employed women and men who are in labor poverty increased by 2.3pp from the third quarter of 2020 to the first quarter of 2023 (from 4.2pp to 6.5pp)
• 14 federative entities are already at pre-pandemic labor poverty levels, including Hidalgo, San Luis Potosí and Baja California.

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