According to recent research from Bank of America Merrill Lynch, Mexico’s average hourly labor wages are now 19.6% lower than China’s. Increasing labor wages in China, combined with plateaued wages in Mexico, have created a major reversal from ten years ago, when labor wages in Mexico were 188% higher than they are now.
Mexico’s labor competitiveness is projected to increase in several ways, which will continue to create downward pressure on wages over the next five years. Mexico’s growing labor market includes an increasing worker demographic, new government labor reform, and rising peso value. Read the full story.