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  • Research report 136: In extreme poverty the 80% of the employed population in Mexico

    Published the Sunday 6 of June of 2021 1:37 PM CAM No comment


    The main objective of this research is to point out the nature of the trends perceived in the employed population that cannot acquire a Recommended Food Basket (CAR)[1] by state, derived from insufficient salary, so I would be in extreme poverty.

    For such analytical motive, The present essay has been methodologically developed, which consists of at least two deliveries, This is the first installment in which the results of the Rate of the Employed Population in Extreme Poverty are presented. (TPOPE), which is constructed from establishing the correlation between the employed population by income levels -so the unemployed population is not considered-, whose information is published quarterly in the National Survey of Occupation and Employment (ENOE) by INEGI, and the price of the Recommended Food Basket (CAR) raised year after year by the UNAM Center for Multidisciplinary Analysis. In this way, employed workers in Mexico who would be in extreme poverty by income are quantified, i.e., the entire population that works, but who does not receive income and / or also workers who receive insufficient income to acquire a basket made up only of food. The second installment will publish the results on the processes and trends in the distribution of the employed population by income levels and, the case study of the real salary and purchasing power of the tabular salary of health workers in Mexico.

    Note: It is very important to point out, that in the analysis of this study, the income levels of the employed population are strictly associated with the nominal wage, no calculations are made or results are presented on the real wage or the purchasing power of the wage of the employed population.

    At the UNAM Center for Multidisciplinary Analysis, The need arises to carry out an analytical examination implementing the Law of Labor Value, The purpose of which is to re-center the nature of the exploitation and precariousness of the workforce as a fundamental axis for the processes of capital accumulation on a world scale., For this purpose, the TPOPE will be used as a tool., which allows to demonstrate the exploitation of the labor force from the processes of wage insecurity.

    Also, the temporality of the analysis was established with reference to the fourth quarter of the years 2006, 2012, 2018 and 2020, for being these, the last years of the six-year period of the governments that are specified below: the 2006 was represented by the administration of the National Action Party (BREAD) headed by Vicente Fox Quezada, in the so-called alternation for power; the 2012, also under the colors of PAN, with the so-called government of employment, implementer of a totally aggressive labor reform for the working class that among so many things achieved for their class interests to legalize outsourcing, there is talk of Felipe Calderón Hinojosa; the 2018 with the return of the Institutional Revolutionary Party (PRI) with the management of Enrique Peña Nieto. Finally the 2020 with the government of the National Regeneration Movement (BRUNETTE) with Andrés Manuel López Obrador. Thus, Throughout the investigation, a comparison is presented towards the end of each of the six-year periods on the results of the wage policy implemented for the entire employed population in Mexico., locating the continuities and ruptures between the steps, to find out how big is the grievance against the working class in Mexico.

    Then, The results of the TPOPE are presented on maps by state for the years 2006, 2012, 2018 and 2020.

    During the 2000, there was the so-called alternation in power, between the conservative right and the institutional right in this country, on the one hand with the increasingly rickety and inoperative project of the PRI for the interests of big capital, and on the other, with the presence of the managers of the large transnationals in the government embodied by Vicente Fox Quezada. The result of this six-year term was that for the 2006 a total of 18 million 554 thousand 765 workers employed in extreme poverty, in other words, the national TPOPE was 42.2%, since for that year they required 1.7 minimum wages to be able to buy only the food basket, same that had a daily cost for that year of $ 80.83 weights in front of $ 48.67 pesos of the daily minimum wage.

    On the following map, It is observed that it is in the Mexican southeast where the condition of misery in the working population is most accentuated, which can be seen in the states of Chiapas with 1 million 189 one thousand workers employed in extreme poverty, to represent a TPOPE of 73.6%, in Oaxaca, 993 thousand 494 workers employed in extreme poverty, with a TPOPE with 68%, Puebla with 1 million 402 one thousand workers employed in extreme poverty, and a TPOPE of 62%, Warrior with 755 thousand 788 workers employed in extreme poverty, and a TPOPE of 60.9% (see table 1) and that incidentally have been states that have historically been subjected to conditions of marginalization and poverty.

    For the closing of the six-year term of the also PAN member Felipe Calderón Hinojosa in the 2012, the observed trend is towards a generalization throughout the country in important levels of the TPOPE; which meant reaching the 32 million 315 thousand 444 people, i.e., a national TPOPE of 66.2% of the employed population was already in extreme poverty, and that when making a comparison with respect to 2006, last year of Vicente Fox's six-year term, represented an increase in 74% of workers employed in extreme poverty; part of the explanation is that for this year they were necessary 3 minimum wages to be able to acquire a CAR, which cost per day $ 188.99 weights in front of $ 62.33 pesos of the daily minimum wage.

    In the following map about the TPOPE by state for the 2012, It is highlighted that in the northern states of the country, regarded as the bastions of the local industrial bourgeoisie, they were stained with high tones of misery, seriously impacting the standard of living of workers. For example, Durango recorded 482 thousand 60 workers employed in extreme poverty, with a TPOPE of 71.1%; Tamaulipas, with 932 thousand 976 workers employed in extreme poverty, which represents a TPOPE of 65.8%. Also, in the center of the country in the capital a TPOPE of 52.2%, representing a total of 2 million 190 thousand 850 workers employed in extreme poverty (see table 1); while in the Mexican southeast, misery worsened when it reached levels like those of Chiapas in the 84.4%, Guerrero 83.6%, Oaxaca 79.2%, Yucatan 76.6%.


    For the 2018, with the return of the PRI led by the administration of Enrique Peña Nieto, we observe that the trend far from diminishing, and faithful to its principles against the working population, it continued the trend of impoverishment of the working classes as a result of regressive wage policies, necessary to maintain the profits of big capital. On this occasion, the number of the employed population living in extreme poverty increased to just over 37 million, to achieve a national TPOPE of 68.4%, that comparing the figure with the 2006, That was from 18 million 554 thousand 765 workers employed in extreme poverty, represented a doubling of misery in employed workers in Mexico.

    In the following map about the TPOPE by state for the 2018, we can see that in the southeast of the country, TPOPE was practically generalized above the 70%. For example, the state of Chiapas registered the highest rate as it was 88.5%, i.e., 1 million 680 a thousand workers work and live in extreme poverty, Guerrero, with 1 million 326 thousand 630 workers employed in extreme poverty, what a TPOPE of 86%; Oaxaca, with 1 million 414 thousand 385 workers employed in extreme poverty, to achieve a TPOPE of 81.7%; Campeche, with 326 thousand 279 workers employed in extreme poverty, to have a TPOPE of 78%; Tabasco, with 699 thousand 87 workers employed in extreme poverty, to have a TPOPE of 74.4% (see table 1).

    On the other hand, but in the same trend are the northern states of the country, as TPOPE generalized on higher levels of the 60%. For example, Durango, with 561 thousand 422 workers employed in extreme poverty, to have a TPOPE of 72.7%; Tamaulipas, with 1 million 121 thousand 363 workers employed in extreme poverty, to have a TPOPE of 68.7%; Coahuila, with 847 thousand 17 workers employed in extreme poverty, to reach a rate of 63.2%; Baja California, with 1 million 25 thousand 933 workers employed in extreme poverty, to register a TPOPE of 60.2%, and the representative case of the center of the country with the capital to be placed with a rate that increased to 58.1%, which meant that 2 million 445 thousand 687 employed workers joined the ranks of extreme poverty (see table 1).


    In December of 2018, The arrival of Andrés Manuel López Obrador to the government occurs under the slogan "the poor first", driven by the exhaustion of millions of workers who were looking for a real change to substantially improve working conditions and wages in the Mexican labor market, which has not happened as we will see below.

    In the last quarter of 2020, the population employed in extreme poverty at the national level amounted to 41 million 567 thousand 104 people, which is equivalent to a TPOPE of 77.9% of the employed population of the total country, in other words, of the 2018 to the 2020 an increase of 12.19%, i.e., in the first two years of the current government they joined the ranks of extreme poverty 4 million 519 thousand 89 busy workers. When comparing in absolute terms with respect to the last year of Vicente Fox Quezada's administration in 2006, in which the population employed in extreme poverty was of 18 million 554 thousand 765, we have increased a total of 23 million 12 thousand 339 workers employed in extreme poverty in the last three six-year periods and the first two years of the current government, i.e., in fourteen years. Or put another way, have been added to extreme poverty per year on average 1 million 643 thousand Mexican workers employed. However, During the first two years of Andrés Manuel López Obrador, the incorporation of 2 million 250 thousand workers employed in extreme poverty, undoubtedly the figure is outrageous for a people mired in misery and, It is a clear example of the continuity and worsening of the wage insecurity process of Mexican workers.

    In the following two maps it is observed for the 2020 the level of wage deterioration of the working classes in each of the states.

    Note: As of January 1, 2019 a new salary zone came into effect, which comprises 43 municipalities, and it is known as the Free Zone of the Northern Border (ZLFN). For the calculation of the TPOPE, the figures of the daily general minimum wage of 123.22 Pesos in force throughout the country in correlation with the price of the CAR for each of the six border states with the north of the country, With the exception of Baja California, which has all its municipalities within the Free Zone of the Northern Border (ZLFN).

    On the map below for the fourth quarter of 2020, It observes that in 30 states throughout the country, the TPOPE are above the 70%, which is synonymous with the level of deterioration of the working and living conditions of the employed workers, and even two states cross the border of the 90%, is the case of Chiapas with a TPOPE of 92.6%, to record a figure of 1 million 897 thousand 717 workers employed in extreme poverty and Guerrero with 1 million 394 thousand 277 workers employed in extreme poverty, with a TPOPE of 91.3% (see table 1); In the case of Oaxaca, it is important to note that it is located very close because it has a TPOPE of 89%; another nodal case is in the capital of the country, which has a total of 2 million 658 thousand 974 workers employed in extreme poverty.

    Now well, even assuming that in all the municipalities of Sonora, Chihuahua, Coahuila, Nuevo León and Tamaulipas will operate the daily general minimum wage of the ZLFN that during 2020 was of 185.56 weights, the situation does not change radically, since only in Nuevo León the TPOPE is below the 50%, However, here it should be noted that only one of the 51 municipalities of Nuevo León are within the ZLFN, so the employed population that is actually benefit of this pseudo-overpayment is minimal.


    We could summarize below, that in a period of four six-year terms with the PAN governments with Vicente Fox Quezada and Felipe Calderón Hinojosa, of the PRI with Enrique Peña Nieto and, now with Morena with Andrés Manuel López Obrador, Regressive wage policy schemes have been implemented that have historically favored the interests of the United States., first with the signing of NAFTA and now with its renewal with the T-MEC, what it has meant in essence, for the vast majority of the working class in Mexico, a systematic job and wage insecurity. In this way they have literally thrown millions of employed workers into extreme poverty.. In fourteen years, wage insecurity advanced from 18 million 554 thousand 765 workers employed in extreme poverty, with a TPOPE of 42.2%, to 40 million 567 thousand 884 workers employed in extreme poverty, with a TPOPE of 77.9%.

    Picture 1.

     

     

    [1] The recommended food basket (CAR) It was designed by Dr. Abelardo Avila Curiel of the Instituto Nacional de Nutrición Salvador Zubirán, is formed by 40 food, excluding expenses that require preparation, Neither the payment of rent in housing, transport, dress, footwear, toilet staff and many other goods and services that fall within the consumption of a family, It is only in relation to the cost of basic food. The CAR is a weighted basket, use and daily consumption, to a Mexican family of 4 people (2 adults, a / young man and a / child) where nutritional aspects are taken into account, of diet, of tradition and habits cultural.

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