Baja California Sur has ranked first in Mexico for labour market conditions for the second consecutive year, according to the 2026 State Competitiveness Index released by the Mexican Institute for Competitiveness (IMCO).
The state leads the nation in average monthly wages at 16,742 pesos (roughly $950 USD) and workforce participation at 67.5 percent. It also reports some of the country’s lowest informality rates and highest education levels.
What the Rankings Measure
The IMCO’s Labour Market sub-index evaluates access to formal employment, gender gaps, income levels, higher education rates and other factors “essential for the adequate performance of workers and employers,” according to the institute’s 2026 report.
Mexico City and Jalisco rounded out the top three. The report notes that leadership in this category “is explained more by employment quality and formality than by short-term growth.”
Top 10 States for Workers in 2026
The full top-ten list includes Baja California Sur, Mexico City, Jalisco, Baja California, Sonora, Chihuahua, Sinaloa, Colima, Querétaro and Nayarit.
States in the top ten share three characteristics: lower informality rates averaging 42.1 percent compared to the 54.6 percent national figure; higher average schooling at 11.1 years versus the national 10.1; and better wages averaging 14,290 pesos per month, 24 percent above the national average across all 32 states.
Why It Matters for Baja Sur
For English-speaking residents and businesses in Los Cabos, La Paz and the surrounding region, the ranking underscores the state’s relative labour stability and skilled workforce — factors that influence everything from service quality in tourism to hiring for construction, real estate and professional services.
The low informality rate means a higher share of workers are covered by social security and labour protections. Higher education levels suggest better availability of qualified candidates for technical and managerial roles. And the wage premium reflects both cost of living and the state’s economic mix, weighted heavily toward tourism, fishing and services.
Sinaloa saw the largest upward movement within the top ten this year according to the report, climbing a total of 8 positions.
The IMCO index is released annually and serves as a benchmark for policymakers, investors and employers evaluating regional economic conditions across Mexico.
Source Note: This story is based on original reporting by eleconomista.com.mx. It has been independently rewritten and adapted by the Gringo Gazette for our English-speaking readers, with additional context where appropriate.
