LSR MEXICO REPORT

Labor poverty in Mexico increased in the fourth quarter of 2020

The percentage of the population that cannot purchase the basic food basket with their labor income increased between 2019 and 2020

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  • 16/02/2021
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Labor poverty in Mexico increased in the fourth quarter of 2020
The gap between labor income between employed women and men in the fourth quarter of 2020 is $ 856.52. (Files)

The figure is higher than the 37.3% registered in the same period of 2019, according to data from the National Council for the Evaluation of Social Development Policy (Coneval).

Among the factors that explain the annual increase in working poverty are the yearly decrease of 2.5% in real labor income and the growth of extreme poverty Lines by Income (value of the food basket) 6.1% in urban areas and 7.6 % in rural areas, both variations greater than annual inflation of 3.5%.

According to the Coneval report, between the fourth quarter of 2019 and the fourth quarter of 2020, there are decreases in the employed population with access to health services for labor benefits. There is an annual reduction of 22.9% in restaurants and hospitality services, miscellaneous services of 9.9%, and in the construction sector of 8.8%.

The percentage of the population that cannot purchase the basic food basket with their labor income increased between the fourth quarter of 2019 and the fourth quarter of 2020. The national level was 3.4 percentage points, which was reflected in an increase in working poverty in 24 of the 32 states. Quintana Roo stands out with a rise of 14.7; Tabasco and Mexico City with 10.4; as well as Baja California Sur with 9.1 percentage points.

However, in quarterly terms, the purchasing power of labor income per capita increased from $ 1,675.21 to $ 1,773.43 real pesos between the third and fourth quarters of 2020. This translates into a decrease in the population's percentage in working poverty from 44.5% to 40.7% in this period.

Regarding the increase in labor income, 20.0% of the population with the lowest labor income per capita went from $ 31.60 to $ 94.36 real pesos between the third and fourth quarters of 2020. This translated into a decrease in labor income inequality, measured from the Gini coefficient when it went from 0.537 to 0.513 in the same period.

The gap between labor income between employed women and men in the fourth quarter of 2020 is $ 856.52, which is $ 162.17 greater than that of the third quarter of 2020.

The income gap for indigenous and non-indigenous employed persons in the fourth quarter of 2020 shows a decrease of $ 140.33 compared to that observed in the third quarter of 2020.

Traduccion: Valentina K. Yanes