India's Job Paradox: Employment Rises, but Wages Lag Behind Inflation

Niti Aayog member Arvind Virmani has pointed to a worrying trend in India's labour market: while jobs are growing, real wages for regular employment have not kept up with inflation in the last seven years. The worker-population ratio has increased to 43.7% in 2023-24 from 34.7% in 2017-18, reflecting job growth ahead of population growth. Nevertheless, the shortage of quality jobs has resulted in real wages stagnating in ordinary salaried occupations. Virmani highlights the immediate need for developing skills at every level of education to enhance productivity and wages. Meanwhile, India's salaries are expected to grow 9.2% in 2025, marginally lower than 9.3% in 2024, which indicates sustained economic woes.

 

Sources: Economic Times, The Week, Aon Study