Like the economy, the job market, too, is showing signs of improvement. The Mercer India Monitor-Quarterly Survey by global HR consultancy firm Mercer forecasts some positive trends ahead.

While overall forecasts for salary increase for 2009 is at 8 per cent, for 2010 it’s higher at 10.9 per cent, with majority of the sectors forecasting a double digit increment. Though most companies have their increments in April, this year many have deferred the review process by a quarter or more.

The other bright spot that comes out from the report is that 50 per cent of the respondents from 93 organisations say that they would hire over the next three months either to add headcount or replace for attrition, while only 2 per cent are looking to trim down their workforce.

Says Gangapriya Chakraverti, India leader, information product solutions business, Mercer: “Optimism about improving performance and the fact that good people are still required means that companies would need to give a reasonable salary increase, particularly to those who did not have one last year.”

The increase in hiring would also reflect in campus placements of B-schools and professional colleges. “Hiring will be a lot better but the salaries offered will not match the pre-September 2007 levels,” says Chakraverti.