Salaries of vocational jobs grew by 18%- Report
Staffing firm, TeamLease Services a report on “Vocational Skills one-up on Higher Education.” A detailed analysis that examines the salary trends of vocational skilled talent and professional degrees holders from poorly ranked institutions. According to the analysis, the average salaries for vocational jobs have been witnessing a steady growth in comparison to Engineering and MBA jobs. In fact, during the period 2017-2018, the average salaries for vocational jobs have grown by 18% whereas Engineering and MBA jobs rose only by 4% and 3% respectively.
Further, as per the study, the earnings from vocational jobs are expected to remain optimistic even in the long run. In fact, six out of the ten sectors reviewed are expected to reward hot vocational jobs with better payouts than that of an Engineering and MBA job.
The sectors wherein vocational talent will be rewarded better than professionals from are Apparel, Automobile, Construction, E-commerce, Gems & Jewellery and Retail. The reason for this unabated rise in vocational salaries is the growing demand for skilled labour. The current labour deficit in the vocational job market is expected to expand to 41.4 – 61.4 million over the next 5 years, implying that the trend of rising salaries will continue unabated for the next couple of years. Poor employability amongst students graduating from low-ranked higher education institutes is also the secondary factor that has led to the stagnation of salaries of professional degree holders.
KEY FINDINGS OF THE STUDY
- The demand-supply gap in the vocational jobs market is expected to balloon to 41.4 – 61.4 million over the next 5 years causing salaries to rise further
- Poor employability not only lowers starting salaries in institutions ranked 51+ by a factor 5 for MBA and by a factor of 4 for Engineering, but also leads to stagnant careers and salaries.
- While salaries for popular vocational jobs (sought after job profiles) are steadily trending up for at least the last three years, salaries for “Hot Vocational Jobs” now have a formidable lead over Engineering and MBA jobs for aspirants from “long-tail” institutions.
- Salaries for select Hot Vocational Jobs such as Visual Merchandiser (Apparel) and Gemmologist (Gems & Jewellery) have a clear lead, across experience levels, over those for Engineering and MBA jobs.
- In case of other Hot Vocational Jobs – such as Lab Technician (Healthcare) and Network Technician (BFSI) – the salaries start comparatively lower than Engineering / MBA jobs and steadily rise to higher levels over time.
- Beyond just higher salaries, Hot Vocational Jobs also make for better long term careers, compared with long-tail institution-based Engineering and MBA. 15-year cumulated payouts are – seen to be markedly higher, compared with Engineering / MBA jobs, for a set of 8 Hot Vocational Jobs :
- In general, the Manufacturing / Goods sectors reward vocational jobs better than professional jobs and the Services sectors reward professional jobs better (Electronics, falling in the latter category, being an exception). Sectors rewarding vocational jobs better.
Commenting on the analysis, Rituparna Chakraborty, Co-Founder & Executive Vice President, TeamLease Services said, “The widening demand-supply gap for vocational skills and the poor employability of graduate talent has skewed salaries in favour of vocational jobs. While currently, the gap in salary growth between vocational jobs and Engineering and MBAs jobs is only 15%, in the coming years it will widen further. Also, with more and more companies focusing on skills rather than educational qualification the demand for vocational talent is also expected to witness stupendous growth in the next couple of years.”
Detailed analysis across sectors and experience level, according to the report the salary growth gap between a vocational job and an engineering job widened with experience. For instance, while a Network Technician with a 5-year experience average salary grew from Rs. 38,000 per month in 2016 to Rs. 51,600 per month in 2018, the salary of an Engineer with similar years of experience grew from Rs. 37,200 in 2016 to only Rs. 41,500 in 2018.
Vocational Skills one-up on Higher Education is a comprehensive study wherein TeamLease has analyzed a total of 3.27 lakh salaries across the TeamLease temporary salary database, salaries listed in third-party job portals as well as salaries of engineers and MBAs from institutions ranked 51 and above. The study covers 13 sectors and 10 cities. Salaries of vocational profiles were computed as the mean values of vocational profiles in a sector and the experience levels of various profiles.