"Double-digit minimum salary increases have become a New Year tradition in Mexico in recent times. Since 2018, the minimum daily salary has almost quadrupled in nominal terms, from the miserly 88 pesos (just under $5) granted by the former Enrique Peña Nieto government to today’s 315 pesos ($17.50).
As you can see in the graphic below, courtesy of Trading Economics, there have been seven steep increases in the minimum wage since December 2018, not counting the one that just went into effect.
Accounting for official inflation, the latest minimum wage increase will bring the accumulated rise in salaries to 154% in eight years. Yet when the former leftist President Andrés Manuel López Obrador began this process, many opposition politicians, business leaders and economists warned that it would fuel inflation as well as risk higher unemployment.
Neither of these things have come to pass. Today, official unemployment in Mexico is 2.7%, close to its lowest level on record."
https://www.nakedcapitalism.com/2026/01/how-mexico-tripled-its-minimum-wage-in-just-eight-years-without-causing-the-economic-chaos-many-economists-had-predicted.html
#Mexico #Economy #MinimumWage #Inflation #Inequality