Mexico City’s Labor Poverty Rate Contracted in 3Q24

Mexico City reported a labor poverty rate of 22.7% in 3Q24, according to data from the National Council for the Evaluation of Social Development Policy (CONEVAL). The local Ministry of Labor noted that this makes Mexico City the entity that has made the greatest advances in addressing this issue.

COVEVAL reported the labor poverty rate in Mexico City decreased from 30.6% in 3Q23 to 22.7% in 3Q24. This represents a reduction of 7.8 percentage points, the largest decline among all Mexican states during this period.

The national labor poverty rate also reduced, decreasing by 2.2 percentage points over the same period. Reductions were observed in 25 of the 32 federal entities, with Queretaro and Yucatan following Mexico City with decreases of 6.6 and 6.1 percentage points, respectively.

Inés González, Mexico City's Minister of Labor and Employment Promotion, highlights that this improvement reflects an increased capacity for workers in the capital to purchase essential goods. 

The report tracks labor poverty trends through the Labor Poverty Trend Index (ITLP), which compares labor income with the cost of a basic food basket. The report also noted a significant annual increase in the city's real per capita labor income, which grew by 25.1% from MX$4,364.39 to MX$5,457.89. This represents the largest annual increase among all states.