I am facing some issues with the time the jobs can run.
Are scheduled searches run in background? What is the runtime limit for them?
Yes, scheduled searches are run in the background based on their scheduling configuration.
I don't think there is an inherit limit on how long a search can take, but there are limits on how long sub-searches and specific commands can take before being auto-finalized.
Peruse http://docs.splunk.com/Documentation/Splunk/6.5.2/Admin/Limitsconf for specific entries that may apply to your saved searches.
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What do you mean by "runtime limit"? Do you mean is there a limit to how long they can take before failing?
Yes that is actually what I mean
Do scheduled sabed searches might not finish due to taking too long?