Salary increase insufficient over inflation

On September, 36,267 workers received an average wage increase of 5.1% while the annual inflation rate stood at 6.35%
he construction sector negotiated the highest average increase reaching 6.6% benefiting only 41 workers – Photo: Artemio Guerra Baz/Cuartoscuro.com
11/10/2017
19:00
Rubén Migueles
Mexico City
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Mexico's salary increase is insufficient to raise purchasing power against the dynamism of inflation.

On September, 36,267 workers received an average wage increase of 5.1% while the annual average inflation rate stood at 6.35%, according to the Secretariat of Labor and Social Welfare (Secretaría del Trabajo y Previsión Social abbreviated STPS) and the National Institute of Statistics and Geography (Instituto Nacional de Estadística y Geografía abbreviated Inegi).

So far this year, wage negotiations reached an average nominal increase of 4.6%, higher than the 4.2% observed in the same period of 2016, but below the 5.85% inflation rate in the first nine months of the year resulting in -1.14% purchasing power.

The biggest increase was due to a negotiation rise in the private sector, which gave an average increase of 5.3% to 35,000 workers, representing -1.01% while 1,262 workers of the public sector achieved a nominal wage increase of 1.2%, which represents -4.86% in purchasing power.

Industry workers achieved an increase of 5.4%, benefiting 22,387 employees, the largest number in September, while the manufacturing sector stands out with an average increase of 5.3% benefiting 20,551 workers. The construction sector negotiated the highest average increase reaching 6.6% however, it only benefited 41 workers.

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