In spite of these vast improvements in the last ten years, Mexico still has some serious challenges ahead. Poverty rates are still high, with more than half the population classified as poor (living on less than two dollars per day) and almost a quarter classified as extremely poor (living on less than one dollar per day). Although unemployment is low in northern Mexico, other parts of the country are suffering from a shortage of jobs, with many workers surviving on part-time work. The Mexican economy needs to create one million new jobs each year in order to absorb the young workers entering the market. .

             The educational infrastructure is currently not sufficient to meet the needs of the labor pool. Although manufacturing jobs are being created in Mexico, many of these are lower paying jobs. The work force does not possess the skills necessary to move into higher paying positions. This has the affect of increasing discontent in lower class Mexicans who aspire to a higher lifestyle, but are trapped in lower paying jobs because of a lack of skills.

             As mentioned above, Mexico has the highest per capita income in Latin America. How is this consistent with the extreme poverty conditions we see there? The answer is that while the average standard of living is increasing in Mexico, the gap between the upper classes and lower classes is increasing. The richest ten percent of the population earns almost forty percent of total income, while the poorest ten percent earns only about one percent of total income. This inequitable situation is compounded by ethnic and regional differences and by differences in access to basic services. Mexico"s goal of reducing poverty and hunger by half, under five year old infant mortality by two-thirds, and maternal mortality by three-quarters by the year 2015 appears to be in jeopardy.

             Much of the benefit of NAFTA has been reaped by larger companies, with access to cheaper foreign financing.