Nearly 25 million Mexicans are getting a pay raise this week. From $4.25 to $4.70 — a day…
Mexican government and business leaders agreed last week to raise the country’s minimum wage starting on December 1 to 88.36 pesos from 80.04 pesos. The 10% raise is good news for 24.7 million Mexicans who work either one or two minimum wage jobs, CNN Money reports.
But it also resurfaces a key complaint by American workers who voted for President Trump, in part because of his pledge to renegotiate NAFTA, the trade pact between the U.S., Canada and Mexico. Trump blames NAFTA for the loss of many American jobs.
Cheap labor has attracted American companies to Mexico for decades. The Economic Policy Institute’s Robert Scott estimates about 800,000 U.S. jobs were lost to Mexico between 1997 and 2013. NAFTA became law in 1994.
With the U.S. national minimum wage at $7.25 per hour — $58 for an 8-hour workday, or 12 times higher than the Mexican wage — Mexico has a clear advantage to attract jobs.
It’s one reason why the country frequently has a very low unemployment rate, which currently stands at 3.6%. By comparison, U.S. unemployment is 4.1% and that’s considered very low by American standards.
In fact, one of the Trump administration’s objectives in renegotiating NAFTA is to have stricter enforcement of minimum wage laws across North America, though the issue has been most prevalent in Mexico.
For Mexican workers, the wage hike is much needed as rising prices have weakened Mexicans’ purchasing power For nearly two years, the Mexican peso has hovered around its all-time low, roughly worth five cents. Seen the other way, one dollar has been worth between 18 and 22 pesos since early 2016.
more recommended stories
Central American migrants held scuffle with police in northern Mexico
Police briefly scuffled with some of.
Is climate change the number one enemy of tourism in Quintana Roo?
Studies carried out in Cancun and.
“Relleno Negro” Cine Janal`s third short film on the beautiful gastronomy of Yucatan
This is not the first time.
British woman stranded in Cancun hospital due to travel insurance trap
Things were bad when Maxine Howell.
Yucatecan entrepreneurs go all out in Vegas showcase
Even though 3D printing already was.
Michelle Fridman, Yucatan Tourism Secretary kicks up a storm.
Editorial by Carlos Velázquez Dinero en Imagen.
Street harrasment means harsh punishment in Merida
Whomever decides to harrass any woman.
Homestead Temporary Shelter for Unaccompanied Children: First stop for migrant kids
For a growing number of migrant.
HOLBOX: Whale Sharks, Street Art, and Lobster Pizza
While Tulum has become a bit.
Women denounce being harassed by ‘drunks’ while riding the bus
Young and adult women who use.