Mexico labor market shows high informality and regional wage gaps

Labor market analysis in Mexico reveals significant disparities in wages, formality, and employment quality across different regions and sectors. In Puebla, high levels of informality reach 70.3 percent, ranking it seventh highest in the country. This informality disproportionately affects women, with a rate of 72.4 percent compared to 68.7 percent for men. While Puebla maintains a low unemployment rate of 1.8 percent, the quality of employment remains low; 83.37 percent of the population earns only two minimum wages, and the average hourly income of 53.24 pesos is notably lower than the national average of 70.26 pesos.

Nationwide, data from the Mexican Social Security Institute (IMSS) highlights a geographic wage gap. Mexico City reports the highest average daily wage at 805.8 pesos (approximately 24,175 pesos per month), followed by Baja California and Nuevo León. Conversely, states such as Nayarit, Sinaloa, and Durango report the lowest average wages. The electrical industry and water supply sectors are identified as having the highest-paying economic sectors.