India to have high-skill talent surplus by 2030, says report

India would be the only economy that will not face an upward revision of wages by 2030, as it has a talent surplus, bucking the global trend of a talent crunch, a report noted.

“Unlike any other country in the study India will have a highly skilled talent surplus by 2030,” the report said.

Globally, a shortage of highly skilled employees could dramatically drive up salaries for the most indemand workers by 2030, according to a study.

This is likely to add more than $2.5 trillion in annual labour costs by 2030, for organisations around the world, according to Korn Ferry's 'The Salary Surge'.

The report revealed that largest economies, including the US, China and Germany are likely to face the rapidly escalating employee costs.

The Global Talent Crunch analysed global demand for labour at three key milestones, 2020, 2025 and 2030, in 20 markets, including in India, across three sectors, financial and business services, technology, media and telecommunications (TMT) and manufacturing.

Globally, US companies can expect to pay the most globally facing a wage premium of more than &531 billion by 2030, while Germany will be the worst affected, facing a potential wage premium of approximately $176 billion by 2030. Meanwhile, in the Asia Pacific, the salary surge could add more than $1 trillion to annual payrolls by 2030, jeopardising companies' profitability and threatening business models if kept unchecked, the Korn Ferry study said. The study also found that Japan would be expected to pay the most, an additional $468 billion by 2030. However, smaller markets with limited workforces are likely to feel the most pressure and by 2030, Singapore and Hong Kong could expect salary premiums equivalent to more than 10 per cent of their 2017 GDP, it said.