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Labor Rates in Loreto and La Paz Baja California Sur, Mexico

Loreto Labor rate.

Unskilled Mexican labor rates in Loreto are very affordable.  It is the low labor rate that accounts for much of the reduced cost of living in the Baja for Americans. That makes living in the Baja for foreigners easy and economical. The other major factor is the low cost of housing. Need some repair around the house or some landscape work?  You can find many in Loreto or La Paz who will work for $20 to $40 USD for an eight-hour day. Loreto labor rates for skilled labor is the same as for La Paz as described below. Keep in mind that Loreto (approx 14,000 people) much less populated than La Paz (approx. 230,000 people) and that will affect the relative labor rate in Loreto for a given type of labor or professional service depending on whether there is full employment or not.  Right now there is not full employment.  Also, the Mexicans are still on the Peso value for their compensation, not the US Dollar.  Therefore, you pay them in Pesos and you will get the advantage of the recent foreign exchange rate that benefits the US Dollar. 

For example, 8 months ago the the exchange rate was $11 pesos to $1 US Dollar.  A very skilled construction laborer would ask for $500 pesos for eight hours of work, or $45 USD.  Today, that worker still wants his $500 pesos,  but that translates to only $36 USD today.

La Paz Labor Rate

La Paz labor rates for unskilled labor is the same as the Loreto labor rates. The Mexican labor rate for auto repair is cheap compared to US prices for that kind of labor (or any kind of labor); about 1/6th to 1/10th the cost in the US.  Generally speaking, unskilled Baja labor rates will be about $2 an hour to $4 USD an hour. Skilled manual labor can be up to $8 US an hour depending on the type of work. Labor rates in La Paz can be cheaper than in Loreto because there are more people in La Paz. Bank tellers, may make about $600 US a month.

For example, I had my car washed in La Paz for $25 pesos about eight months ago. At the then exchange rate of $11 pesos to $1 US Dollar, It cost me $2.27 USD.  It was hand washed by two young guys working as hard and as fast as they could for almost one hour.  The car was very, very dirty (it's a 4-wheel drive SUV in the Baja, man!).  Today, that would be $1.79 USD at today's rate of $14p to 1$ USD. The point here is that if I wanted them to work eight hours at my house to do yard work and clean up, they would jump at the chance to make $20 USD for one day's work.  Try to get that done in your American neighborhood!

Baja Labor Rates for Professionals

The Baja labor rate or fee rates for attorneys will vary with education, competence, experience, English speaking ability, confidence, sophistication, and how good looking they are, just like in the United States.  In general, the Baja labor rates for professionals are from $60 to $400 per hour US.  Generally, the more expensive ones are not at all necessarily better than the lower costing attorneys, they just have more gal and larceny in their hearts. 

English speaking professionals in Mexico can command a little more, or alot more depending on nothing in particular. Actually, I have found that those professionals that typically earn more are just more enterprising and not afraid to "ask for alot more" with confidence in their manner and voice.  The quality isn't at all necessarily better. Actually, I have seen more instances where the lower costing, less self-enterprising professionals are more conscientious, more attentive to detail, more responsive, more courteous, and appreciative of getting your business. Labor rates in Baja are all over the place. That is, you will find vast differences in Mexican labor rates for any given type of labor or professional service.

Professionals Can Get Lucky. Professionals, including architects and contractors, have learned that they can get lucky by just blurting out a high price the first time they are asked for their fee rates.  They are getting very brazen about this.  When hiring a professional, get first hand referrals.  Also, do some checking around to ascertain the relative availability of the professionals that you want, and get an idea of what the going rates are for the level of expertise you are looking for.  I recommend that you spend many hours checking things out.   TOP