The Government could stimulate employment growth by cutting real wages across the board (which would not alter wage relativities unfairly)

only if the real wage cuts reduced the overall desire to save by the non-government sector.
only if workers accepted the cuts and agreed to supply more labour.
because this will reduce labour costs and align them better with the declining revenue that the recession has caused.

Answer: only if the real wage cuts reduced the overall desire to save by the non-government sector.

Please read Deficit spending 101 - Part 1 or post a comment for further discussion.