| Keyword |
Description |
| Minimum wage |
The lowest legal hourly pay that employers must give workers |
| Gini coefficient |
A number from 0 to 1 that measures how unevenly income is spread in a country (0 means perfect equality) |
| Marginalized |
Groups or people are pushed to the edges of society, often with less power or access to resources. |
Mexico has made impressive progress in reducing poverty across Latin America, largely thanks to big boosts in the minimum wage over recent years. According to a United Nations report from the Economic Commission for Latin America and the Caribbean (ECLAC), Mexico's poverty rate dropped by 3.1 percentage points in 2024. This means fewer people are struggling to afford basic needs like food and housing. The key driver? Minimum wage hikes of about 135% in real terms from 2018 to 2025, which put more money in the pockets of low-wage workers and lifted many families out of hardship.
Despite these gains, inequality is still a huge issue in Mexico. The report highlights that the top 10% of earners control one-third of the country's total income, while the bottom 10% get just 2%. Over the past decade, economic inequality has fallen by 14%, with Mexico's Gini coefficient—a measure of income disparity—improving from 0.50 to 0.43. However, global economic troubles could slow this positive trend. In broader terms, Latin America's overall poverty rate hit a record low of 25.5% in 2024, down 2.2 points from the year before, with Mexico contributing 60% to this regional improvement, followed by Brazil at 30%.
Poverty isn't just about money; it also includes access to health, education, and decent living conditions. Multidimensional poverty in Latin America fell from 34.4% in 2014 to 20.9% in 2024, thanks to better housing and services. Still, extreme poverty affects 9.8% of the population, or 62 million people, which is higher than a decade ago. The region remains one of the most unequal in the world, second only to sub-Saharan Africa, where the richest 10% hold over 34% of income, and informal jobs plague 47% of workers. Education gaps are stark too, with 28% of young adults aged 20-24 not finishing secondary school.
To tackle these challenges, ECLAC recommends practical steps like offering free secondary education to everyone, creating more formal jobs with good pay, and pushing for gender equality so more young women can enter the workforce. Policies should also support marginalized groups, including people with disabilities, Indigenous communities, and migrants. These ideas could build on Mexico's wage successes to make lasting change. As economies shift, focusing on inclusive growth will be crucial for a fairer future.
Bridging words
These words sound similar in English and Spanish: Why not practice them now?
| English |
Spanish |
| Percentage |
Porcentaje |
| Regional improvement |
Mejoramiento regional |
| Migrants |
Migrantes |
Time to discuss
- Has raising the minimum wage in Mexico really helped the poorest people, or does it just benefit some workers?
- Why is inequality still so high in Latin America, even with poverty dropping?
- Should governments focus more on free education or on creating better jobs to fight poverty?
Let's write
Answer the following questions in one paragraph:
- Imagine you're a low-wage worker in Mexico—how has the minimum wage increase changed your life, and what more do you need?
- If you were advising Mexico's leaders, what one policy would you suggest to reduce inequality, and why?
