Non-Metro Cities Drive 70% of India's Formal Job Growth, Report Reveals

Non-metro cities drive 70% of formal job growth in India: Report

New Delhi, February 23

The findings come from a study of over 4.83 lakh workers across more than 640 locations. Employment is growing fast in centres like Coimbatore, Indore, Surat, Vadodara, Noida, and Lucknow. Sectors such as retail, banking, manufacturing, and logistics are the main drivers of these jobs. In Tier-3 towns, the banking and manufacturing sectors provide over 45 per cent of the workforce, while retail provides 33 per cent.

The Quess Pulse report also stated that young people under the age of 30 make up 64 per cent of the workers studied. More than half of this workforce has been in their current role for less than one year. This shows a high level of mobility and a move toward project-based and seasonal work. The report also shows that more than 26,000 new Universal Account Numbers were created in the first half of the 2026 financial year. These numbers give workers access to provident funds and insurance.

Lohit Bhatia, Chief Executive Officer of Quess Corp, said, "India is seeing a clear change in where formal jobs are being created. Nearly 69% of payroll-linked employment is now in Tier-2 and Tier-3 cities (40%) of the workforce." He noted that this shift reflects a decentralisation of opportunity where daily economic activity is taking place.

Women make up 23 per cent of the 26,000 new workers added to the UAN. Most of these new registrations came from Tamil Nadu and Karnataka, followed by Andhra Pradesh and Kerala. This trend matches national data showing that many new jobs are going to the youth.

"As formal jobs and social security penetrate deeper, employment growth becomes broader and more evenly spread," Bhatia said. He added that the shift toward organized work outside of large metros is an important part of building a stronger labor market and supporting the growth of the country.

— ANI