Shoemaker in San Christóbal, Mexico

Social situation Income and wealth unevenly distributed

Mexico finds itself in a situation that is typical for emerging economies: On the one hand, the country is an important regional and global player that has achieved considerable economic success. On the other hand, it is facing considerable social and environmental difficulties. The current Human Development Index (HDI) ranks Mexico 77th out of the 193 countries assessed.

The Mexican government calculates the national poverty rate on the basis of a multidimensional index that, in addition to income, also measures access to basic social rights such as health, education and housing. According to this data, more than 35 per cent of the population is still living in poverty. The government has launched a number of social programmes, including programmes for farmers, pensioners, unemployed youth, people with disabilities and single mothers. Nevertheless, substantial structural causes of poverty still remain.

The distribution of wealth is extremely unequal, with huge differences between regions and between population groups. In the north and centre of the country there are relatively wealthy regions with businesses operating at global market standards. The centre is dominated by the Mexico City conurbation, where a large proportion of the country’s gross domestic product is generated. The south is less developed by comparison.

Indigenous Peoples, who make up around ten per cent of the entire population, are particularly affected by social and economic exclusion. According to official figures, more than two thirds of the Indigenous population lives in poverty.


Labour market policies

In recent years, there has been an improvement in workers’ rights: participatory rights have been strengthened, the minimum wage has been gradually raised to more than twice what it was and the minimum number of days off has been increased. The number of people in formal employment has risen, although people working in the informal sector still make up over 50 per cent of all workers.

As at: 04/10/2024