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Salary raise for labor force has an impact on conctruction costs

Section: Economic Statistics | Monica Marli

May 10, 2018 09h00 AM | Last Updated: May 10, 2018 11h59 AM

The National Index of Civil Construction, released today by the IBGE, changed by 0.26% in April, recording an increase of 0.12 percentage points in comparison with the previous month. The rate resulted, to a great extent, from the performance of labor force, with a change of 0.37%, a significant increase of 0.59 percentage points against March 2018.

Augusto Oliveira, manager of the survey, explains that behavior results, mainly, from the rise of salaries granted by means of a collective bargaining in Minas Gerais, a state whose participation is very significant to the index calculation. 

“A collective bargaining validation, resulting in considerable rise of salaries, in the same period and covering most professional categories, certainly has some influence on the national index. When that comes from such a representative state, the impact is even more relevant”. 

Material had the lowest rate in the year, 0.14%, though having recorded an increase of 0.10 percentage points against the April 2017 figure. As a consequence, the national cost of construction by square meter stayed at R$ 1,077.16, being R$ 554.15 relative to material and R$ 523.01, to labor force.



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