Latin America's minimum wage earners saw a hike in their rates last year, but the World Bank cautions that many of them still do not earn enough to be considered middle class. The financial agency also said these workers remain economically vulnerable despite the wage increase.

Minimum Wage Earners Vs. Middle Class

Some 38 percent of Latin American laborers still earn an average minimum income of $4 to $10 daily. By World Bank standards, these rates do not give earners the insurance or stability that middle-class wage earners enjoy. The latter is defined as earning at least $10 to $50 a day.

World Bank analysts suggest that the vulnerable may seemingly have it good because the Latin American economy was essentially good in the first decade of this millennium. However, with the agency forecasting regional growth at only 0.1 percent for 2016, the vulnerable could be at risk of falling into poverty eventually.

No Decline In Poverty Rate

In January 2015, the United Nations released a report through the Economic Commission for Latin America and the Caribbean (ECLAC) that should have economic leaders and experts concerned. The findings underscored how the rate of poverty in Latin America has not declined despite economic growth. "It seems the recovery from the international financial crisis was not taken advantage of sufficiently to strengthen social protection policies that reduce vulnerability from economic cycles," ECLAC head Alicia Barcena said.

Minimum Wave Vs. Cost Of Living

Meanwhile, the American Society of Council of the Americas also released a primer on minimum wage increases in regions like Brazil, Guatemala, Chile, Colombia, Mexico and Peru, and indicated that while it generated positive responses, it's still not enough to support workers against potential economic and political unrest.

For instance, while Brazil had one of the highest wage increases in 2015, Brazilian President Dilma Rousseff was criticized that the effort was done to earn the public's support when the country's financial strength remained unstable and government corruption was rampant.

On the other hand, Colombia's labor leaders argue that the wage increase is inadequate because the Colombian peso remains weak against the U.S. dollar. Before the increase, peso to dollar trading was at 2,400 to $1. However, it changed to 3,300 to $1 at the beginning of the year and it continues to affect the cost of living.

In Mexico, Mayor Miguel Angel Mancera described the increase as symbolic, when the country still has the lowest minimum wage rates compared to other Latin American territories. Most Mexicans families still have a hard time subsisting on minimum income.