According to a new analysis by the Hay Group division of Korn Ferry, India recorded a salary growth of merely 0.2% since the great recession in 2008 some eight years ago, while GDP has grown by 63.8% over the same period. On the other, China recorded the largest real salary growth of 10.6% during the period.
According to Benjamin Frost, global product manager-pay, Korn Ferry Hay Group, “India has made less progress than some other countries in bringing high-value jobs to the country. This has led to poor job growth, therefore, an oversupply of un/semi-skilled people, and poor wage growth”. The report further noted that Indian wage growth is the most unequal. Indian wage growth is the most unequal, with salaries of people at the bottom falling 30% and that of people at the top rising 30%, the report adds "Of the countries we looked at, Indian wage growth was by far the most unequal - people at the bottom are 30 per cent worse off in real terms since the start of the recession; whilst people at the top are 30 per cent better off", says Benjamin Frost.
The Korn Ferry’s analysis comes at a time when Prime Minister Modi is making significant efforts to attract investments in labour-intensive sectors such as manufacturing to boost employment.