5 factors contributing to high paying jobs in India in 2024

India’s employment report 2024, released by Institute of Human Development (IHD), and International Labour Organisation (ILO) in March pointed to a concerning youth unemployment crisis as 7 million people enter the workforce annually but have limited job opportunities.

Some Government Statistics on Employment

The Centre for Monitoring of the Indian Economy (CMIE) in June 2024 reported a rise in unemployment to 9.2 percent, up from 7 percent in May. Women face particularly high unemployment, with rates rising to 17.5 percent in June 2024. The issue is prevalent in both urban and rural job markets.

On the other hand, the Ministry of Labour and Employment highlighted positive data from the Periodic Labour Force Survey showing over 80 million jobs created between 2018 and 2022 with worker population ratio increasing to 56 percent in 2023. Formal employment has also grown as 13 million new Employees Provident Fund Organisation subscribers joined in 2024.

Factors Contributing to High Salaries

There are various factors that contribute to an employee getting high paying jobs. The list is given down below.

• Specialised Factors: According to PwC’s 2024 “Global AI Jobs Barometer”, higher paying jobs require specialised skills such as Artificial Intelligence, data science, blockchain development, cybersecurity, and quantum computing. High paying jobs stem from a combination of factors, demand for niche skills, technological advancements, global competition, and productivity gains. Individuals with these skills also benefit from the high demand to low supply ratio.

• Value Created: Another factor shaping salaries is the economic value that a job creates. Jobs that directly generate revenue for companies or society typically pay more. That is why investment bankers are highly compensated for managing large sums of money and facilitating business growth. Industries with high AI adoption have witnessed nearly 4.8 times productivity growth. Therefore, AI experts are likely to earn more.

• High Risk Jobs: High paying jobs often come with greater risk and responsibilities. Professionals like doctors, pilots, and CEOs are entrusted with people’s lives or the future of companies, which explains their higher pay. When an operation or company fails to perform, they are also the same people likely to lose their careers or reputation.

• Geography and Cost of Living: Jobs in areas like Mumbai and Bengaluru, the pays usually pay more than similar roles in smaller cities like Indore and Jaipur. Companies adjust wages to account for the higher cost of living in metropolitan cities, where competition for talent is fierce. To thrive in these regions, higher levels of skills are required thus defining the importance of specialised exercise. Benefits and salaries also may vary according to the work structure, that is if the work is based from the office, or in hybrid mode or of a remote setting.