Labor's Wages Rise But Purchasing Power Is Decreasing, What Is This Sign, Gusti!

Illustration (Photo: Doc. Antara)

JAKARTA - The Central Statistics Agency (BPS) stated that the nominal daily wage of farm workers in April 2022 rose by 0.29 percent compared to the nominal wage of farm workers in March 2022, from Rp. 57,941 to Rp. 58,109 per day.

Likewise, the daily nominal wage for construction workers (non-foremen) in April 2022, which rose slightly by 0.01 percent compared to March 2022, from Rp92,040 to Rp92,049 per day.

Head of BPS Margo Yuwono said the positive score did not have much effect on improving people's purchasing power. This is because the real wages of farm workers have decreased by 0.68 percent.

The same thing happened to the real wages of construction workers, which fell 0.94 percent. "The real wages of workers or workers are an illustration of the purchasing power of the income and wages received," he said through a digital channel when giving a presentation to the media crew on Tuesday, May 17.

The fall in the real wages of workers indicates that an increase in income does not necessarily raise people's purchasing power. In fact, the record last month became an anomaly in itself when wages rose but purchasing power actually decreased.

It is suspected that the current rapid rate of inflation cannot be matched by the growth in wages received by workers.

“The real wage of farm laborers is the comparison between the nominal wages of farm workers and the consumption index of rural households. Meanwhile, the real wage for construction workers is the ratio of the nominal wage for construction workers to the urban consumer price index,” continued Margo.