Key Labor and Economic Trends Shaping Global Workplaces

This week’s updates focus on significant labor developments, from discussions regarding a 40-hour workweek reform and the economic value of unpaid labor to growth in nonprofit sector employment. Efforts to address workplace gender violence and promote disability inclusion highlight increasing commitments to equity. Meanwhile, global inflation pressures are reshaping retirement plans, emphasizing the need for stronger financial strategies. Together, these trends highlight the evolving intersection of policy, economics, and social progress in shaping labor and workplace standards.

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Mexico

Mexico's Minimum Wage to Rise 12% in 2025 Amid Economic Changes

CONASAMI approved a 12% minimum wage increase in Mexico for 2025, raising it to MX$278.80 (US$15.14) per day and MX$419.88 (US$24.70) in the Northern Border Free Zone. Supported by business, labor, and government, the hike aligns with President Sheinbaum’s goal of covering 2.5 basic baskets by 2030. However, peso depreciation reduces its value in USD, while the new rate—US$1.71 per hour—remains far below the US federal minimum of US$7.25. Inflation and economic pressures may limit real-term gains despite a projected 7% improvement in purchasing power. Professional wages for certain trades will also increase.

Mexico Eyes 40-Hour Workweek Reform Discussion in 2025

President Claudia Sheinbaum plans to discuss reducing Mexico's workweek from 48 to 40 hours in 2025. The proposal, aimed at improving work-life balance, involves collaborative talks among business leaders, workers, and legislators to amend Art. 123 of the Constitution. While earlier reform efforts stalled, recent activism has reignited urgency, prompting government-led dialogues. This reform, alongside potential minimum wage increases, could reshape labor rights, productivity, and economic structures.

Unpaid Household Labor in Mexico Represents 26.3% of GDP: INEGI

In 2023, unpaid domestic and caregiving labor in Mexico was valued at MX$8.4 trillion (US$420 billion), representing 26.3% of GDP, according to INEGI. Women contributed 71.5% of this value, predominantly through tasks like food preparation and child-caring, while men handled household management and volunteer work. Caregiving services accounted for the largest share at 24.5%. The average economic value of unpaid labor per person was MX$63,033, with the highest contributions from Mexico's most populous regions. 

Nonprofit Sector in Mexico Boosts Employment

In 2023, Mexico’s nonprofit sector employed over 3.07 million people, a 7.5% increase from 2022, comprising 7.8% of the workforce. The sector contributed 3.1% to GDP, with a 4.7% growth rate surpassing the national economy's 3.2% growth. Key areas included education and research (41.7%), religious services (17.4%), and development initiatives (16.5%). INEGI also launched a tool to estimate the economic value of volunteer work, emphasizing the sector's role in employment, economic growth, and addressing social needs.

Mexico City Launches Measures Against Workplace Gender Violence

The Mexico City Ministry of Labor (STYFE) launched the Violentómetro Laboral, a Workplace Violence Meter, to combat workplace violence against women. This tool, part of broader initiatives led by Mayor Clara Brugada, helps women identify and report harmful behaviors using a color-coded system categorizing violence levels. Distributed online and via outreach, it highlights how minor actions, like hurtful jokes, can escalate. STYFE also offers a free course on workplace discrimination and violence and provides legal and psychological support through its Subprosecutor's Office for Women Workers.

Industry Developments 

Global Corporations Commit to Disability-Inclusive Practices

The International Labour Organization’s (ILO) Global Business and Disability Network released a guide, Putting the I in ESG, to integrate disability inclusion into corporate sustainability strategies. Featuring 10 focus areas with actionable KPIs, it helps companies enhance ESG reporting and promote inclusion. At the From Margin to Mainstream conference, global corporations pledged to prioritize disability-inclusive practices. With 5.7% of Mexicans living with disabilities, this aligns with Mexico’s constitutional and international commitments to equal workplace rights, emphasizing inclusion as a strategic advantage for businesses.

Economic Pressures Reshaping Retirement Plans Globally

Rising inflation is reshaping global retirement plans, with many baby boomers and Gen Xers delaying retirement or returning to work due to increasing living costs and inadequate pensions. In the UK, 14% of retirees aged 55 and older have resumed work, while in the United States, nearly 20% of those 65 and older remain in the workforce, contributing 7% of national wages. Mexico has introduced pension reforms, including higher employer contributions and shorter vesting periods, but challenges persist due to high informality and inflation pressures. These trends underscore the urgency of stronger financial planning and inclusive retirement systems.