But even in terms of increments, 2022 will likely be better than 2021; which was better than 2020; different industries recover at different rates, increasing the divergence of increases between sectors. According to Anandorup Ghose, partner, Deloitte Touche Tohmatsu India, “There is a belief that we are at the start of a new investment cycle.” “Companies project wage growth figures based on best estimates. So it is difficult or rather too early to say conclusively that the labor market has recovered,” he told TOI.
Ghose says the causes of the rebound in wage increases depend on the economic recovery and also on sector-specific issues. “For example, the ability of the automotive sector to rebound is hampered by certain supply issues. Some sections of the service industry and even traditional manufacturing component industries have not fully recovered,” he said.
On the other hand, IT and related industries are at their highest level in 20 years, he notes. Digital e-commerce companies and IT product companies are expected to deliver some of the highest (double-digit) increases in 2022. “The IT services industry is booming and there is a significant flow of funding for business-based startups. technological products. The offer The drop-out rate in some of these sectors is around 60 to 70%, which means that people have alternative jobs available, ”explains Ghose.
Ghose believes that there is currently a two-track economy. “IT companies are giving more hiring bonuses and adjusting salaries more than once a year. On the other hand, in some industries people are being asked to leave and alternatives are hired at lower pay levels, ”he says.
Retail, infrastructure, real estate and hotel companies forecast the smallest increases in 2022. This despite lower-than-long-term average increases in 2021.
For a broader recovery, Ghose believes that real estate and construction would be the sectors to watch. “After agriculture, construction is the biggest employer and any impact on the real estate sector will impact the overall earning potential of people which in turn will fuel the consumption cycle,” he said.