Assured Labor

Mexico’s 2012 Minimum Wage, Expected 2012 Inflation rate, and Current Unemployment: Job Creation Critical to Mexico’s Economic Success

Mexico’s Labor Ministry has increased the minimum wage for 2012 by 4.2 percent, bringing the minimum wage in Mexico City (and all of zone A) to 62.33 pesos (the equivalent of ~$4.60 per day). This increase is slightly higher than the 2011 minimum wage increase of 4.1 percent, and is higher than the expected rate of inflation—which the Bank of Mexico projects to be between three and four percent.[1]

Although Mexico has done a good job keeping inflation levels low and stabilizing the peso’s exchange rate, it is still struggling to reduce the levels of unemployment. Unemployment in October of 2011 stood at 4.8 percent and underemployment was 9.3 percent.[2] Given Mexico’s dependence on the United States’ economy, current recessionary trends in the US could have a negative impact on unemployment in Mexico. It is critical for Mexico to continue to create jobs in order to elevate the country’s standard of living.

[1] Anthony Harrup, Mexico’s 2012 Minimum Wage Increase Set at 4.2%, (December 2011).
[2] Trading Economics, Mexico Unemployment Rate, (December 2011).

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