The real wages of the construction-related labour groups (such as carpenter, mason, electrician etc) showed significant inflationary trend during FY06 owing to the sustained economic growth and increased activity in different sectors, particularly the construction, said the Annual Report FY2005-06 issued by SBP here on Saturday.
The rise in real wages, on the one hand, showed strong demand for skilled and unskilled construction workers and, on the other hand, it suggested increase in employment at least in construction sector.
The increase in real wages also provided evidence of a rise in the purchasing power of the construction workers. It may be noted that the rise in the real wages was seen for all categories of construction workers, but impact was more pronounced in the case of unskilled labour.
It should also be kept in mind that a broad-based sharp rise in real wages might slow the employment absorption by reducing demand for additional labour, it may also decelerate the present growth momentum going forward, the report added.