Mexico faces T-MEC review with 57 million lacking decent work, warns NGO

Mexico is entering the third round of bilateral negotiations for the review of the USMCA (T-MEC) trade agreement facing significant labor system deficits, according to the NGO Acción Ciudadana Frente a la Pobreza. The organization estimates that 57 million people in the country lack decent work.

The NGO's report, the 29th from the Dignified Work Observatory, highlights that these findings coincide with ongoing discussions between the Mexican and U.S. governments regarding the trade deal's review. Based on data from Mexico's National Occupation and Employment Survey (ENOE), the report indicates that out of 82.3 million people of working age, 57 million experience labor exclusion or precarious conditions. Complete unemployment affects nearly 10%.

Specifically, 21.7 million people remain outside the labor force, while 35.9 million have jobs but lack social security access. Of those with jobs, 32.6 million work in the informal sector. The NGO argues these figures demonstrate persistent structural deficiencies in the Mexican labor market, despite over three decades of North American free trade.

The report also points out that official unemployment figures may underestimate the reality. Acción Ciudadana estimates 6.5 million people are fully unemployed, an adjusted rate of 9.7%, when including those who recently sought work and those available but no longer searching. Women and young people face the greatest disadvantages, with women comprising 3.8 million of the fully unemployed and 15.2 million being out of the labor market due to caregiving responsibilities. Additionally, 33.7 million workers earn insufficient incomes, 33.2 million lack union representation, and 18.6 million work without stable contracts.

In response, the NGO proposes expanding public care systems, creating a formal first-job strategy for youth, incentivizing informal workers to join social security, updating income tax tables, and promoting decent wages to boost the domestic market and reduce labor poverty.