Mexico Leads OECD Real Wage Growth as Spain Stagnates

The OECD Employment Outlook 2026 report shows Mexico ranking fourth among OECD members for real wage growth since early 2021, with a 15.1% increase in real wages and a 68% rise in the real minimum wage. Real wages in Mexico grew 3.9% in the most recent year, far above the OECD average of 1.7%, while the nominal minimum wage rose 122.3% (real increase 68%). Productivity in Mexico advanced about 2% per year, and unemployment remained low at around 2.7‑3%. The report also notes a slowdown in labour‑market momentum, with employment growth and labour‑force participation each falling about one percentage point since 2024. In contrast, Spain’s real wages grew only 2% last year and remain 2% below Q1‑2021 levels, placing Spain among the OECD economies with the steepest real‑wage declines. Despite recent minimum‑wage hikes, Spain’s wage stagnation is identified as a major weakness, alongside modest productivity growth and renewed short‑term inflation pressures across the OECD.