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India Overview

Global Skills Index

India’s score of 4.2 suggests labour market pressures that are more moderate than the historical norm. In part, this is a function of India’s slowing economy. The economy is expected to grow by 5.1% in 2013, the same rate achieved in 2012 but down from the 7.3% average the country experienced in 2000-08. The unemployment rate, which is forecast to remain at 12.5% in 2013, is one of the highest among the countries in the Hays Global Skills Index.

 View the full Global Skills Index here and see how all 30 economies compare

Key Findings

India’s strong year-on-year increases in the tertiary educated population contribute significantly to downward pressure of the Index score. Employers may find this eases difficulties recruiting and retaining high-skill workers.

Downward pressure fromindiascore2

• Increase in education levels
• Wage pressure in high-skill industries
• Labour market participation, ages 15-24

Upward pressure from

• Net in-migration
• Labour market participation, ages 55-64
• Structural unemployment

India's 2013 Index

The diagram below shows how India scored for each individual component. The component's all carry an equal weighting but the first four can be considered 'structural indicators' while the last three are compensation based indicators. Each indicator is given a score from 0 to 10.0 and the overall Hays Index score (4.2 for India) is a simple average of the seven indicator scores.



View from the ground

India recorded its worst GDP growth in a decade amid continuing concerns over high inflation, poor infrastructure development and a weak political scenario. The figures released by the government were met with disappointment and Indian business leaders commented that this marked a significant decline from the optimism of the last six years when growth appeared set to move into double digits. Organisations are cautious when hiring and are instead resorting to other means of recruiting new employees such as social media or improving their brand positioning rather than hiring.

Chris Greaves, Managing Director, Hays Gulf Region & India

 How does your country compare? The full Global Skills Index is available here