The wage gap below high- and lower-skill industries has declined below historical norms, driven by rapid wage growth in several lower-skill sectors.
Declining participation rates amongst people aged under 25 and over 55 put upwards pressure on India’s score, although working-age participation rate is growing.
Wage growth is expected to slow slightly this year. However, it remains the fastest amongst the countries featured in the Index and is forecast to accelerate in future years.
The journey of reforms which the Government has embarked on continues this year and the impact can be seen on many fronts – for example India moved in to the top 100 in the World Bank’s Ease of Doing Business global ranking for the fi rst time. On the other hand, the growing impact of changing geopolitical, economic and technical factors is increasingly visible on the talent strategies of corporates, as they are now focussing on future-proofing their talent by beginning to invest in innovative ways to retrain and reskill key resources rather than just focussing on hiring for new skills. This not only readies them for future but has helped in retaining key talent. The current wave for technologies like artificial intelligence, robotic process automation, data sciences, blockchain etc. has instigated a demand for workers with hybrid skills.
Shane Little, APAC Managing Director, Hays Talent Solutions
India continued to see strong economic growth of over 7% a year by the end of 2017, with only a gradual slowdown predicted ahead.
This compares to employment increases of around 2%, suggesting rapid improvements in productivity.
However, there remains much scope for further productivity increases over the decades ahead, with India’s GDP per employed person standing well below the average for low- and middle-income countries. India’s educational attainment similarly has room for improvement, with a World Bank Education Index ranking of 130 out of 180 countries.