They use it to increase production at tight times, while idling workers during slack periods.

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Many smaller contractors prefer to turn a blind eye for fear of losing workers in such a tight labour market.

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That will mean skilling and re-skilling workers in an increasing tight labour market, and providing the next generation of the workforce with the right skills.

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Outsourcing support to the private sector makes financial sense when budgets are tight, because there are fewer rules governing the use of workers there and original manufacturers may understand their products better than government employees do.

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Money will be tight to pay for their care, as the ratio of taxable workers per benefits-collecting retiree will shrink from four to two.

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Security was tight in Noida, a Delhi suburb, where on Wednesday angry workers attacked factories and set ablaze 25 vehicles, including a fire truck.

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The number of part-time workers has also continued to fall, reinforcing the picture of a tight labour market.

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Companies with tight budgets sometimes cope with a heavy workload by hiring more interns or temporary workers, says Eileen Appelbaum, a senior economist with the Center for Economic and Policy Research.

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Constraints include a lack of on-hand ready-to-build lots (the price of pre-developed land lots has skyrocketed), tight lending standards for small to mid-sized builders, and a notable shortage of construction workers since tradesmen fled the city several years ago and have not returned.

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