• 5.4

    2019

0.6

Up

Key drivers

Wage Pressure in High-Skill Industries (6.8)

In contrast to recent years, the wage gap between low-skill industries and high-skill industries has expanded, suggesting employers are paying a premium for skills in short supply.

Overall Wage Pressure (7.0)

Real wages are forecast to grow at the highest rate of any of the 34 markets featured in the report.

Labour Market Participation (4.2)

Labour market participation is forecast to rise slightly this year. This will increase the size of the skilled labour pool employers can recruit from.

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Education Flexibility

0.7
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Labour Market Participation

4.2
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Labour Market Flexibility

8.7
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Talent Mismatch

5.2
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Overall Wage Pressure

7.0
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Wage Pressure in High-Skill Industries

6.8
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Wage Pressure in High-Skill Occupation

5.0

View from the Ground

India remains one of the fastest-growing economies globally. The core industries continue to register a consistent growth rate, and Government initiatives such as ‘Start-up India’, ‘Make in India’, ‘Ease of Doing Business’, as well as foreign direct investment policy reforms, are instrumental in facilitating this growth. This may mean an improvement in the employment outlook for most industries as the sentiment seems to indicate fresh recruitment plans will be high on the agenda for many businesses. There is a general focus on moving towards digital, creating high demand for skills already in short supply, meaning organisations are offering higher wages to those workers. The consumer industry is another sector that continues to attract the best talent and higher salary increases compared to other sectors. Industries are also focusing on closing their skills gaps by engaging with key talent and upskilling them through training and talent development.

Shane Little, APAC Managing Director, Hays Talent Solutions

Key Skills in Demand

  • Cloud Computing Engineers
  • Artificial Intelligence Professionals
  • Semi-conductor Engineers
  • Sales and Marketing Professionals for FMCG
  • Mobile Application Developers

Market Insight

India’s economy continued to perform strongly in 2018, growing by 7.5%, slightly higher than the average GDP growth for the previous five years of 7.2%. Two of the main drivers of this growth were the construction and manufacturing industries, which grew by 8.9% and 8.1% respectively in 2018. This strong growth has been supported by India’s young and growing labour force. The working-age population grew by 1.5% in 2018 to over 900 million.

There are marked differences in labour market participation rates between males and females. The International Labour Organisation estimates the labour market participation rate for females in India was 23.6% in 2018, compared to 78.6% for males. Changes made in 2017 to improve maternity benefits and a 2018 scheme to extend healthcare insurance to one hundred million poor and vulnerable families may help close this gap.