The State of Job Markets in India &Retirement Age Status v1
Quantity vs Quality of Job Creation
- There has been a rise in the overall quantity of employment, driven mainly by growth in self-employment and informal sector jobs. However, the quality of these jobs in terms of wages and stability has been stagnant.
- The aggregate employment and unemployment metrics do not fully capture the quality of jobs being created. There is a need to look at the composition of employment by type (salaried, casual, self-employed) and the distribution of earnings to assess the health of the labor market
Emerging Talent Trends
- India has a large and growing working-age population, resulting in an expanding talent pool. However, there is a shortage of skilled talent in certain sectors like technology, healthcare, and manufacturing.
- Competition for top talent has intensified, leading companies to focus more on employer branding, benefits, and retention strategies.
- Upskilling and reskilling have become essential for employees to stay relevant as industries undergo rapid technological changes
- Promising sectors for job growth in 2023 include renewable energy, e-commerce, digital services, healthcare, telecommunications, and financial technology.
Salary and Compensation Trends
- India’s median salary increases are expected to rise by 10% in 2023, surpassing the 9.8% increase in 2022.
- Sectors like financial services, tech, pharmaceuticals, and retail are projected to see the highest salary increases.
- Variable pay remains an important aspect of compensation, with organizations emphasizing performance-based rewards.
Hiring and Retention Challenges
- Despite the economic uncertainty, 98% of employees in India are open to new job opportunities, indicating high turnover rates.
- Work-life balance has emerged as the top priority for employees, surpassing career progression and financial remuneration3
- Succession planning, especially for C-suite roles, has gained prominence as organizations focus on building a strong talent pipeline.
In summary, the Indian job market is experiencing a mix of positive and concerning trends, with the need to focus on improving the quality of jobs created, addressing skill gaps, and implementing effective talent management strategies to attract and retain top talent.
The retirement Age Status:
Private Sector Retirement Age
- The retirement age for private sector employees in India is typically in the range of 58-62 years.
- However, some companies have increased the retirement age to 60-65 years, with a few examples like:
- JPMorgan raised its retirement age from 60 to 65 years
- Genius Consultants raised its retirement age from 58 to 60 year
Public/Government Sector Retirement Age
- The retirement age for central government employees in India is 60 years.
- This retirement age for government employees was last revised in 1998, when it was increased from 58 to 60 years.
Trends and Considerations
- There is a trend among some private companies to increase the retirement age, driven by factors like retaining experienced talent, reducing cash outflows on retirement benefits, and addressing the shortage of skilled workers.
- However, increasing the retirement age could also lead to fewer opportunities for younger employees to move up the ladder.
- Some organizations are also providing voluntary retirement schemes (VRS) options for employees beyond a certain age, to balance the needs of both the company and the employees.
In summary, the retirement age in India varies between the private and public/government sectors, with the private sector having a more flexible range of 58-65 years, while the public sector retirement age is fixed at 60 years.
