Mexico’s Wage Bills Experience Rapid Growth in Last Five Years, with Nuevo León Leading the Way

In the past five years, the sum of workers’ salaries in Mexico has experienced a significant increase, with a 37.2 percent growth compared to only 3.4 percent over the previous 13 years, according to estimates from the National Council of Evaluation of the Social Development Policy (Coneval). This data shows a substantial increase in labor compensation since 2005, but most of this growth has been seen since the end of 2018.

The wage bill has increased in almost all states in Mexico over the past two decades, except for Morelos, which has accumulated a decline of 3.5 percent over nearly 20 years. Additionally, Morelos was followed by 11 other entities with a decline in the sum of labor remunerations. However, there has been significant progress in states like Nuevo León, Tabasco, and Mexico City, with substantial growth in their wage bills in the last five years.

In recent years, Nuevo León has recorded the greatest growth in its wage bill due to its booming economy and strategic location as a gateway to the United States. Tabasco and Mexico City have also experienced significant growth thanks to their large population and important economic activities. On the other hand, Guanajuato, Sonora, Querétaro, Colima, and Quintana Roo have seen minimal progress or even declines in their wage bills over time due to various factors such as low population density and limited economic opportunities.

It is worth noting that these variations in wage bill growth among different states reflect not only economic changes but also social and political developments unique to each region. For example, some regions may have implemented policies that encourage foreign investment or have more favorable business environments than others. As such, it is essential to understand these regional differences when analyzing labor market trends across Mexico.

Overall, while wages have increased significantly across Mexico over the past few decades, there are still disparities among different states that require addressing through targeted policies aimed at promoting economic development and improving workers’ living standards nationwide.