India salaries inch up, Chinese rise 11%

[grey boy 2]

India salaries inch up, Chinese rise 11%
Updated: September 16, 2016 00:39 IST

Local pay packets grew just 0.2% since 2008

India has seen a salary growth of just 0.2 per cent since the great recession eight years back, while China recorded the largest real salary growth of 10.6 per cent during the period under review, says a report.

According to a new analysis by the Hay Group division of Korn Ferry, India’s salary growth stood at 0.2 per cent in real terms, with a GDP gain of 63.8 per cent over the same period.

During the period under review, China, Indonesia and Mexico had the largest real salary growth at 10.6 per cent, 9.3 per cent and 8.9 per cent, respectively.

Meanwhile, some other emerging markets including Turkey, Argentina, Russia and Brazil had the worst real salary growth at (-) 34.4 per cent, (-) 18.6 per cent, (-) 17.1 per cent and (-) 15.3 per cent, respectively.

“Most emerging G20 markets stood at either one end of the scale or the other either amongst the highest for wage growth, or amongst the lowest. However, India stood right in the middle, with all the mature markets,” the report said.

Unequal wages
The report further noted that Indian wage growth is the most unequal.

“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,” said Benjamin Frost, Korn Ferry Hay Group Global Product Manager — Pay.


Strong wage growth for senior jobs is mostly because of skill shortages for key professional and managerial roles; and the increasing connection to a more globalised pay market at the senior levels — a market where India still pays less than most countries, but is catching up fast, Mr. Frost said.

Regarding the poorer wage growth at the bottom, the report noted that it was more because of an oversupply of people.

“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 unskilled or semi—skilled people, and poor wage growth,” Mr. Frost said.

Worst recovery
Globally, the United States suffered one of the worst salary recoveries among developed nations. Adjusted for inflation, salaries in the United States decreased 3.1 per cent on average since September 2008 — despite a Gross Domestic Product (GDP) growth of 10.2 per cent.

Canada leads
Canada’s salary recovery is the best among developed nations, with a 7.2 per cent salary growth on average, with a GDP gain of 11.2 per cent.

Other developed nations experienced flat to modest salary growth, with Australia at 5.9 per cent, France at 5.2 per cent, Germany at 5 per cent and Italy at 2.4 per cent.

“Overall, while global economists point to this recovery as one of the worst in history, there are political, economic and social reasons for the disparate salary fluctuations in different countries,” Mr. Frost said.
http://www.thehindu.com/business/Economy/india-salaries-inch-up-chinese-rise-11/article9111667.ece
Sorry that i've deleted the first thread because of posted in the wrong section

 

[Götterdämmerung]

“Most emerging G20 markets stood at either one end of the scale or the other either amongst the highest for wage growth, or amongst the lowest. However, India stood right in the middle, with all the mature markets,” the report said.

See, India is a mature market on paar with developed countries. China is not.

 

[AndrewJin]

And automation will exacerbate the situation there....
No inclusive growth, no jobs, fancy number is nothing....

 

[Bussard Ramjet]

And automation will exacerbate the situation there....
No inclusive growth, no jobs, fancy number is nothing....

Man, I am beginning to work in this field, and trust me, robots will only shift jobs, not replace them.

It is like agriculture. Earlier 80-90% people everywhere were employed in agriculture. With technological innovations that has come down to 5-10%.

Tell me, did this mean that the rest people just died or were replaced with no jobs to do?

And automation will exacerbate the situation there....
No inclusive growth, no jobs, fancy number is nothing....

Textile sector is worth around $1 trillion. China alone exports around 250 billion dollars worth of stuff. The WHOLE textile sector is NOT automated. It is hugely human driven.

 

[kaykay]

That is the case when you compare the Indian salaries in dollars....

 

[SouI]

Meanwhile, some other emerging markets including Turkey, Argentina, Russia and Brazil had the worst real salary growth at (-) 34.4 per cent, (-) 18.6 per cent, (-) 17.1 per cent and (-) 15.3 per cent, respectively.

There you see ladies and gentlemen the results of Unsound Economy Policies!!

We apparently performed 2 TIMES WORSE than double-devalued-currency-owner RUSSIA! FFS!!

 

[AndrewJin]

Man, I am beginning to work in this field, and trust me, robots will only shift jobs, not replace them.

It is like agriculture. Earlier 80-90% people everywhere were employed in agriculture. With technological innovations that has come down to 5-10%.

Tell me, did this mean that the rest people just died or were replaced with no jobs to do?




Textile sector is worth around $1 trillion. China alone exports around 250 billion dollars worth of stuff. The WHOLE textile sector is NOT automated. It is hugely human driven.

This is funny...
So when you don't need so many people in agriculture in your state, what you are gonna do with them?
Now you find it difficult even to create mere one million jobs per year.
I guess the best way is to refuse the new stuff?
Well, we should welcome more and more countries which refuse the new technology, shouldn't we?

 

[Bussard Ramjet]

This is funny...
So when you don't need so many people in agriculture in your state, what you are gonna do with them?
Now you find it difficult even to create mere one million jobs per year.
I guess the best way is to refuse mechanisation?
Well, we should welcome more and more countries which refuse the new technology, shouldn't we?

Jobs are created by people. Once the people come out of agriculture, and skill they will automatically create jobs.

In the end, people are just gonna skill up and move up the value chain with the help of technology.

 

[AndrewJin]

Jobs are created by people. Once the people come out of agriculture, and skill they will automatically create jobs.

In the end, people are just gonna skill up and move up the value chain with the help of technology.

I guess next you will say every body will have Equal productivity per capita Ultimately?

See, India is a mature market on paar with developed countries. China is not.

Let's enjoy the power of modern agriculture with Brahms Symphony No.2
@Götterdämmerung Can u identify which version?
@Mista @yusheng @cirr @TaiShang A small task....definitely not Carlos Kleiber....

 

[Bussard Ramjet]

I guess next you will say every body will have Equal productivity per capita Ultimately?

Let's say even your IQ hypothesis is correct, then Indians can have 80% of the productivity of Chinese right? (Which again I deny is completely false, but let's play for a moment.)

 

[AndrewJin]

Let's say even your IQ hypothesis is correct, then Indians can have 80% of the productivity of Chinese right? (Which again I deny is completely false, but let's play for a moment.)

When did I mention IQ or PISA here?
When did I say IQ=80 can do 80% work of IQ=100?
When did I say IQ=105 equal IQ=105?
Pls don't be a racist here!

Regards

 

[Economic superpower]

Of course Chinese salaries are way ahead of India. China is the largest or 2nd largest consumer market for nearly all the big global brands and Chinese tourists are the biggest spenders in the world by a long way.

China is ahead of India in everything and that will continue to be so forever. I've said India will break up sometime this century as they will get their 'balkanisation' moment. Artificially created unions never last.

India won't EVER surpass China.

 

[+4vsgorillas-Apebane]

Man, I am beginning to work in this field, and trust me, robots will only shift jobs, not replace them.

It is like agriculture. Earlier 80-90% people everywhere were employed in agriculture. With technological innovations that has come down to 5-10%.

Tell me, did this mean that the rest people just died or were replaced with no jobs to do?




Textile sector is worth around $1 trillion. China alone exports around 250 billion dollars worth of stuff. The WHOLE textile sector is NOT automated. It is hugely human driven.

In India and to a lesser (but still substantial) extent China, a lot of agriculture is done in small family run acreages that are extremely inefficient and totally lacking in scientific practices for crop yield and sustainability. It is much better to amalgamate farmland into larger and mechanized farming and having the rural populate be moved into cities and take on other forms of employment like factory work or better.

Just look at the plight of sugar cane farmers in India, there is little money but people have no other option but to do it inefficiently and poorly paid.

Automation will bring in more money and enable the populace to either starve or propel themselves into the next tier of work and industry (like China). In the case of India, too many people and not enough work (especially in manufacturing) will result in a disdain for automation in order to retain extremely low paying jobs for the masses - like sugar cane farming. India is in a world of pain and if everyone is like you and advocating larger populations, the population 'dividend' will eventually turn into a mass of unemployable and idle people waiting to be fed by the state.

 

[Hellfire]

Man, I am beginning to work in this field, and trust me, robots will only shift jobs, not replace them.

Increased automation will shift people out of any sector. Be it industrial or agricultural. So what comes next? Service sector! That too, is is increasingly based on multi-tasking to reduce running costs of a cost centre. So, where do the jobs come with the phenomenal 'young' population, am increase in life span in Indian society and no reduction of reproductive rate to replacement rate? We have been in late expansion phase of population growth for over two decades now!

It is like agriculture. Earlier 80-90% people everywhere were employed in agriculture. With technological innovations that has come down to 5-10%.

Tell me, did this mean that the rest people just died or were replaced with no jobs to do?

The majority of displaced moved to cities and towns. I am sure you can see it on ground today. And they have tough time holding regular jobs. They are employed in odd jobs. The concept of 'disguised unemployment' is still evident.

At entrance exams for post of peons, regularly you find graduates and post graduates, now even doctorates are appearing - for a regular paying job. The problem is only going to grow worse as the retirement age creeps up!

 

[Hellfire]

See, India is a mature market on paar with developed countries. China is not.

Your sarcasm aside, a higher rise in salary will increase costs for cost centres. For both China and India, the real advantage was in lower salaries keeping the costs of production low. That shall slowly get eroded and manufacturing shift to countries with lower overall input costs.