Job Market Shows Signs Of Stability, Shows Survey

The latest Annual Salary Increase and Turnover Survey 2025-26 by Aon, covering over 1,060 companies across 45 industries, suggests that even as global growth slows, Indian firms are holding steady on pay, confidence in the country’s domestic demand and investment-led recovery.

The highest pay jumps are expected in real estate and infrastructure (10.9 per cent) and non-banking financial companies (10 per cent), followed by life sciences and automotive manufacturing (9.6 per cent), and engineering design services (9.7 per cent). Sectors such as e-commerce (9.2 per cent) and retail (9.6 per cent) are also expected to remain active, while technology consulting will likely be more restrained, averaging just 6.8 per cent, the lowest among all surveyed sectors.

Even with these differences, the overall picture points to an economy balancing ambition with caution. Attrition has fallen to 17.1 per cent in 2025, down from 17.7 per cent in 2024 and 18.7 per cent in 2023, as employees appear more inclined to stay put amid fewer external shocks. Companies, in turn, are investing in targeted skill development and retention instead of blanket hiring.

“The last couple of years were uncertain, so even a small hike feels reassuring,” said Sandeep Rao, a 32-year-old software engineer in Hyderabad. “People aren’t jumping jobs like before. Stability is worth more than a fancy offer letter right now.”

This sentiment reflects a wider shift. “Attrition has slowed, which gives us space to focus on building skills instead of constantly replacing people,” said Phaninder N., an HR manager at a life sciences firm in Telangana, pointing out that hybrid work models and consistent appraisal cycles have helped retain employees.

At the top of the pay charts, real estate and finance are witnessing renewed confidence. Infrastructure investments, government housing projects and credit expansion have created a steady appetite for skilled professionals.

“Construction work has picked up again and hiring’s back in full swing,” said Rohit Nandyala, a project engineer with a Hyderabad-based real estate company. “Pay hikes look bigger this year, but so do project timelines, everyone’s pushing hard to meet demand.”

The finance sector, too, is recalibrating compensation to plug gaps in specialised talent. “In our field, good people are still hard to find,” said Aditi B, who works with a mid-sized NBFC in the city. “The 10 per cent hike may sound generous, but most firms are just trying to retain trained professionals before competitors pick them up.”

Experts say this cautious optimism stems from stronger domestic fundamentals. Aon’s consulting leader Roopank Chaudhary noted that India’s growth story is being driven by infrastructure spending and policy reforms that continue to attract investments despite global slowdowns.

While average pay growth remains in the single digits, the composition of hikes shows a clear tilt towards high-skill and growth-linked roles. Technology platform and product companies are expected to offer 9.4 per cent, FMCG about 9.1 per cent, and manufacturing around 9.2 per cent, suggesting that even mature sectors are investing steadily in key talent.