A new analysis by the Hay Group division of Korn Ferry says India has seen a salary growth of just 0.2 per cent since 2008, while China recorded the largest real salary growth of 10.6 per cent during the period under review. 
 
According to the report, India&#39;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. 
 
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 during the period under review. 
 
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. 
 
&quot;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,&quot; the report said. 
 
The report further noted that Indian wage growth is the most unequal. 
 
&quot;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,&quot; Benjamin Frost, Korn Ferry Hay Group global product manager said. 
 
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, Frost said. 
 
&quot;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 un/semi-skilled people, and poor wage growth,&quot; Frost said. 
 
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&#39;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. 
 
&quot;While overall, 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,&quot; Frost said. 
 
(WION with inputs from PTI)

The report says China recorded the largest real salary growth of 10.6 per cent during the period under review

A new analysis by the Hay Group division of Korn Ferry says India has seen a salary growth of just 0.2 per cent since 2008, while China recorded the largest real salary growth of 10.6 per cent during the period under review. According to the report, 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. 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 during the period under review. 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. 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," Benjamin Frost, Korn Ferry Hay Group global product manager said. 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, Frost said. "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 un/semi-skilled people, and poor wage growth," Frost said. 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'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. "While overall, 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," Frost said. (WION with inputs from PTI)

India's salary growth at 0.2%, GDP gain of 63.8% since 2008: Report

It was the year 2005 and I was in the 9th grade. My whole family was talking about a distant relative who got admission in London School of Economics (LSE) for her masters. And just a year later, everyone was again talking about her as she&rsquo;d got a job with some big company in London with a monstrous pay package. In such talks, no one ever knows the exact name of the company or the exact figure of the money. When news travels through multiple sources, such details are often lost in transit. 
&nbsp; 
At an impressionable age of 15, such talks leave a significant impact. One doesn&rsquo;t even realise when they become part of the sub-conscious and influence one&rsquo;s future decisions in one way or the other. Fast forwarding to 2011, I completed my undergraduate studies in Economics from Delhi University and was holding an offer letter from LSE for Masters. It was just 4 years after the financial crisis had rocked the world and the effects of this meltdown had not significantly subsided. Moreover, in the same year, the UK government had stopped giving 2-year work permits along with the student&rsquo;s visas. They were protecting jobs for their own citizens. 
&nbsp; 
A year later, I graduated but with a job in a niche think tank in Delhi. Many of us still reminisce the pre-2008 period. At that time, every student was holding almost two to three jobs with decent salaries much before his/her final exam. Job seekers held the bargaining power. People were taking loans to buy houses and expensive cars as paying the instalments was not a big deal. We indulged, our governments indulged and sometimes over-indulged. There was an element of irrational exuberance. 
&nbsp; 
There are four stages in a business cycle: boom, recession, depression and recovery, with the names themselves indicative of their meanings. Most of us think that recession and depression are the worst phases of a business cycle but are they really? Instead, it is during boom when we take the most stupid decisions, plummeting ourselves into a recession. &nbsp; 
&nbsp; 
Every time there is a boom, we make mistakes and, often, those turn out to be big mistakes. In a paper on the 1997 Asian crisis, Paul Krugman writes: &ldquo;as long as the real estate prices and stock markets were booming, even the questionable investments tended to look good. As the air began to go out of the bubble, losses began to mount, further reducing the confidence and causing the supply of fresh loans to shrink even more.&rdquo; 
&nbsp; 
Before the 2008 crisis, more importance was given to international finance than to international trade. We started moving from real to nominal - an important factor for not being able to contain the crisis in just one part of the world. Most of the European economies were over-leveraged before 2008, thus falling into an abyss of debt crisis after the shocking financial year. 
&nbsp; 
Similarly, in Venezuela, they focused so much on oil during the boom years and lavishly spent their windfall. When the oil prices fell recently, they were unable to bear the losses. Oil was their only source of income. They made the age-old mistake of putting all their eggs in the same basket. 
&nbsp; 
Also, many of the South American economies like Brazil, Colombia, etc. gorged on debt during the so-called happy times with the entire debt being denominated in US Dollars. When the Dollar appreciated significantly and the exports of commodities fell sharply, these countries were unable to service their debt and, as a result, their GDPs contracted and the standards of living worsened. Instead of maintaining the same level, the South American people have actually become poorer. &nbsp;&nbsp; 
&nbsp; 
When there is boom, every institution in every country demands lowering of rules and regulations. Everyone wants to ride the wave, be it the government, banks, financial institutions, citizens or international bodies. People behave irrationally, completely disregarding the consequences of their actions. 
&nbsp; 
We may need a regulator monitoring the activities of the various institutions during such periods of the business cycle so that it stops anyone from making those mistakes which have severe consequences in the long term. But here too, the regulator is caught up in a catch - 22 situation. If the regulator stops irrational behaviour in the beginning and things are upward looking for a while, then people think that the regulating body was panicking for no reason as everything is going great. Nobody understands that this is because the bad elements were weeded out at the right time. 
&nbsp; 
As a world, we need to arrive at a solution to clip this irrational exuberance when we are healthy. Maybe we need to devise a mechanism where someone reminds us of our past mistakes so that we don&rsquo;t repeat them in future.&nbsp;

Every time there is a boom, we make mistakes and, often, those turn out to be big mistakes

It was the year 2005 and I was in the 9th grade. My whole family was talking about a distant relative who got admission in London School of Economics (LSE) for her masters. And just a year later, everyone was again talking about her as she’d got a job with some big company in London with a monstrous pay package. In such talks, no one ever knows the exact name of the company or the exact figure of the money. When news travels through multiple sources, such details are often lost in transit. At an impressionable age of 15, such talks leave a significant impact. One doesn’t even realise when they become part of the sub-conscious and influence one’s future decisions in one way or the other. Fast forwarding to 2011, I completed my undergraduate studies in Economics from Delhi University and was holding an offer letter from LSE for Masters. It was just 4 years after the financial crisis had rocked the world and the effects of this meltdown had not significantly subsided. Moreover, in the same year, the UK government had stopped giving 2-year work permits along with the student’s visas. They were protecting jobs for their own citizens. A year later, I graduated but with a job in a niche think tank in Delhi. Many of us still reminisce the pre-2008 period. At that time, every student was holding almost two to three jobs with decent salaries much before his/her final exam. Job seekers held the bargaining power. People were taking loans to buy houses and expensive cars as paying the instalments was not a big deal. We indulged, our governments indulged and sometimes over-indulged. There was an element of irrational exuberance. There are four stages in a business cycle: boom, recession, depression and recovery, with the names themselves indicative of their meanings. Most of us think that recession and depression are the worst phases of a business cycle but are they really? Instead, it is during boom when we take the most stupid decisions, plummeting ourselves into a recession. Every time there is a boom, we make mistakes and, often, those turn out to be big mistakes. In a paper on the 1997 Asian crisis, Paul Krugman writes: “as long as the real estate prices and stock markets were booming, even the questionable investments tended to look good. As the air began to go out of the bubble, losses began to mount, further reducing the confidence and causing the supply of fresh loans to shrink even more.” Before the 2008 crisis, more importance was given to international finance than to international trade. We started moving from real to nominal - an important factor for not being able to contain the crisis in just one part of the world. Most of the European economies were over-leveraged before 2008, thus falling into an abyss of debt crisis after the shocking financial year. Similarly, in Venezuela, they focused so much on oil during the boom years and lavishly spent their windfall. When the oil prices fell recently, they were unable to bear the losses. Oil was their only source of income. They made the age-old mistake of putting all their eggs in the same basket. Also, many of the South American economies like Brazil, Colombia, etc. gorged on debt during the so-called happy times with the entire debt being denominated in US Dollars. When the Dollar appreciated significantly and the exports of commodities fell sharply, these countries were unable to service their debt and, as a result, their GDPs contracted and the standards of living worsened. Instead of maintaining the same level, the South American people have actually become poorer. When there is boom, every institution in every country demands lowering of rules and regulations. Everyone wants to ride the wave, be it the government, banks, financial institutions, citizens or international bodies. People behave irrationally, completely disregarding the consequences of their actions. We may need a regulator monitoring the activities of the various institutions during such periods of the business cycle so that it stops anyone from making those mistakes which have severe consequences in the long term. But here too, the regulator is caught up in a catch - 22 situation. If the regulator stops irrational behaviour in the beginning and things are upward looking for a while, then people think that the regulating body was panicking for no reason as everything is going great. Nobody understands that this is because the bad elements were weeded out at the right time. As a world, we need to arrive at a solution to clip this irrational exuberance when we are healthy. Maybe we need to devise a mechanism where someone reminds us of our past mistakes so that we don’t repeat them in future.

The classic economic conundrum: Slipping as you rise

In the run upto EU referedum slated for Thursday and likelihood of Brexit, speculations are rife that leaving the European Union would be a shock for the EU and the global economy.&nbsp; 
 
Some analysts warn of a potential &quot;disintegration&quot; of the EU as remaining countries seek to renegotiate their own relationships with Brussels. 
 
Last week, Germany&#39;s Foreign Minister Frank-Walter Steinmeier stressed, &quot;It would be a shock for the EU that would require mutual assurances that the EU continues to stick together and that a very successful decades-long process of integration doesn&#39;t in the end turn into disintegration.&quot; 
 
Here are some of the possible knock-on effects of a British departure from the European Union, or Brexit: 
 
&lsquo;Cameron wouldn&rsquo;t last&rsquo;: Conservative veteran Kenneth Clarke has warned that Cameron &quot;wouldn&#39;t last 30 seconds&quot; if Britons vote to leave the EU. 
 
The bookmakers&#39; favourite to replace him is believed to be former London mayor Boris Johnson, the &quot;Leave&quot; camp figurehead. 
 
Second referendum in Scotland: Following the British exit from the EU, Scottish First Minister Nicola Sturgeon may launch a second referendum on independence. 
 
This time, Scotland would possibly vote to secede from the United Kingdom, fracturing the UK. Further, Northern Ireland would also be isolated from its EU land neighbour, the Republic of Ireland, and cross-border trade could plunge. 
 
Former British prime ministers John Major and Tony Blair said it would be &quot;difficult if not impossible&quot; to maintain a free-travel area between the neighbours. 
 
The two men, who were key players in bringing an end to sectarian violence in Northern Ireland, also warned that Brexit could put the peace process at risk. 
 
Exit negotiations between London and Brussels: An onset of complicated exit negotiations may begin between London and Brussels, with access to the single market the main bone of contention. 
 
European Commission chief Jean-Claude Juncker has already said Britain would be &quot;a third party, who we won&#39;t be bending over backwards for.&quot; 
 
More so, WTO Director General Roberto Azevedo said the process could take up to 10 years, and that it &quot;could take quite some time before the UK got back to a similar position that it has today,&quot; given its weak negotiating position. 
 
Recession risk? Turmoil in the markets and uncertainty in the city of London financial hub could lead to a 15-20 percent fall in the pound sterling, inflation at five percent, higher interest rates, a hike in the cost of labour, and the growth rate slowing by 1.0 to 1.5 percent, according to HSBC analysts. 
 
Also, observers are of the view that thousands of jobs in the city could be transferred to Frankfurt or Paris, top companies have warned. 
 
The Brexit camp argues that the business world would adapt quickly with Britain remaining a flexible and dynamic economy, helped by new economic partners and selective immigration. 
 
Although most economic institutions predict long-term pain for post-Brexit Britain, research consultancy Capital Economics said that it would &quot;not spell disaster&quot; indefinitely for the country&#39;s valuable financial sector, highlighting Britain&#39;s legal system, language, time-zone and large pool of skilled labour as &quot;intrinsic advantages.&quot; 
 
Drop in Immigration: Immigration from the EU is likely to drop drastically, leading to a shortage of workers in the construction and service industries. 
 
A win for Brexit in the referendum -- seen by many voters as a proxy poll on immigration -- would increase pressure on the government to impose tough caps on new arrivals. Immigration consistently tops polls of the most important issues for British voters. 
 
 
 
 
 
 
 
 
 
&nbsp;

Observers anticipate drop in immigration, recession risk and a possible second Scottish referendum on independence, if Britain exits from EU

In the run upto EU referedum slated for Thursday and likelihood of Brexit, speculations are rife that leaving the European Union would be a shock for the EU and the global economy. Some analysts warn of a potential "disintegration" of the EU as remaining countries seek to renegotiate their own relationships with Brussels. Last week, Germany's Foreign Minister Frank-Walter Steinmeier stressed, "It would be a shock for the EU that would require mutual assurances that the EU continues to stick together and that a very successful decades-long process of integration doesn't in the end turn into disintegration." Here are some of the possible knock-on effects of a British departure from the European Union, or Brexit: ‘Cameron wouldn’t last’: Conservative veteran Kenneth Clarke has warned that Cameron "wouldn't last 30 seconds" if Britons vote to leave the EU. The bookmakers' favourite to replace him is believed to be former London mayor Boris Johnson, the "Leave" camp figurehead. Second referendum in Scotland: Following the British exit from the EU, Scottish First Minister Nicola Sturgeon may launch a second referendum on independence. This time, Scotland would possibly vote to secede from the United Kingdom, fracturing the UK. Further, Northern Ireland would also be isolated from its EU land neighbour, the Republic of Ireland, and cross-border trade could plunge. Former British prime ministers John Major and Tony Blair said it would be "difficult if not impossible" to maintain a free-travel area between the neighbours. The two men, who were key players in bringing an end to sectarian violence in Northern Ireland, also warned that Brexit could put the peace process at risk. Exit negotiations between London and Brussels: An onset of complicated exit negotiations may begin between London and Brussels, with access to the single market the main bone of contention. European Commission chief Jean-Claude Juncker has already said Britain would be "a third party, who we won't be bending over backwards for." More so, WTO Director General Roberto Azevedo said the process could take up to 10 years, and that it "could take quite some time before the UK got back to a similar position that it has today," given its weak negotiating position. Recession risk? Turmoil in the markets and uncertainty in the city of London financial hub could lead to a 15-20 percent fall in the pound sterling, inflation at five percent, higher interest rates, a hike in the cost of labour, and the growth rate slowing by 1.0 to 1.5 percent, according to HSBC analysts. Also, observers are of the view that thousands of jobs in the city could be transferred to Frankfurt or Paris, top companies have warned. The Brexit camp argues that the business world would adapt quickly with Britain remaining a flexible and dynamic economy, helped by new economic partners and selective immigration. Although most economic institutions predict long-term pain for post-Brexit Britain, research consultancy Capital Economics said that it would "not spell disaster" indefinitely for the country's valuable financial sector, highlighting Britain's legal system, language, time-zone and large pool of skilled labour as "intrinsic advantages." Drop in Immigration: Immigration from the EU is likely to drop drastically, leading to a shortage of workers in the construction and service industries. A win for Brexit in the referendum -- seen by many voters as a proxy poll on immigration -- would increase pressure on the government to impose tough caps on new arrivals. Immigration consistently tops polls of the most important issues for British voters.

Five possible knock-on effects of Brexit?

recession

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