Key Points

India's employment landscape is experiencing a significant transformation with Tier-2 cities emerging as powerful job markets. The IT sector is driving unprecedented growth, with smaller cities outpacing metropolitan areas in recruitment. Job platforms like foundit are witnessing a remarkable shift towards decentralized employment opportunities. This trend signals a promising future for job seekers beyond traditional metropolitan centers.

Key Points: IT Hiring Soars 53% in Tier-2 Cities Driving India Jobs

  • IT sector leads 53% hiring surge in smaller cities
  • Coimbatore tops job market with 26% growth
  • Metros see slower recruitment compared to Tier-2 regions
  • Retail, energy sectors show significant month-on-month momentum
2 min read

IT hiring in smaller cities soar 53 pc, fuels overall job growth in India: Report

foundit report reveals explosive job growth in smaller Indian cities, with IT sector leading remarkable employment transformation across Tier-2 markets.

"Job seekers now have diverse opportunities closer to home - Pranay Kale, foundit CRGO"

New Delhi, July 2

India's Tier-2 cities are continuing to emerge as key engines driving the nation's employment growth, according to a report on Wednesday that showed that hiring for the IT sector surged by 53 per cent in smaller cities.

The report, by job platform foundit, showed that the overall national hiring held steady month-on-month (0 per cent) and grew by 20 per cent year-on-year. But Tier-2 markets have surged ahead, growing 28 per cent YoY and outpacing the national average significantly.

The growth is driven by sectors such as IT, BFSI, Manufacturing, and FMCG. Coimbatore (+26 per cent) in Tamil Nadu reported the most hiring followed by Nagpur (+24 per cent), and Nasik (+24 per cent) in Maharashtra.

The IT industry has seen exceptional growth in Tier-2 cities, jumping 53 per cent YoY, far ahead of the national average of 30 per cent. The logistics and transportation (42 per cent) and energy (38 per cent) sectors also contributed significantly to robust growth in these markets.

Fostered by expanding industries and investments, Tier-2 cities have taken centre stage.

On the other hand, major metros like Delhi-NCR (+5 per cent YoY), Chennai (+18 per cent), and Bengaluru (+16 per cent) saw comparatively slower growth, the report said.

"The hiring momentum shift towards Tier-2 cities, especially in IT and Entry level roles, is notable. Job seekers now have diverse opportunities closer to home, reflecting India's rich and varied talent landscape," said Pranay Kale, Chief Revenue & Growth Officer (CRGO) of foundit.

"For employers, these cities offer strategic opportunities for sustained growth, driven by improved infrastructure, targeted investments, and the strategic intent to diversify geographically. This growth, the strongest we've seen in recent years, clearly underlines Tier-2 cities' increasing importance in India's employment landscape," Kale added.

Further, the report showed that the overall hiring held steady in June, and key consumer-facing sectors and tech roles saw notable month-on-month momentum.

Retail led all industries with a 10 per cent MoM rise, driven by festive preparations and expansion across Tier-2 markets.

Energy (+7 per cent MoM) and import and export (+8 per cent MoM) also posted solid gains, signaling renewed infrastructure and trade activity.

- IANS

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Reader Comments

S
Sarah B
As someone who moved back to Nagpur from Bangalore last year, I can confirm this trend. Better work-life balance, lower living costs, and now comparable salaries - Tier-2 cities are the future!
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Priya S
While this is positive, I hope infrastructure keeps pace. Nashik roads already can't handle current traffic. Growth must be sustainable with proper urban planning.
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Rohit P
Companies are finally realizing talent exists beyond IITs and metro colleges. My cousin got placed in Coimbatore with package matching Bangalore offers. #Tier2Rising
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Michael C
Interesting data! I work for a US firm that recently opened a Nashik office. Cost arbitrage is significant, and we're finding highly skilled engineers who stay longer than in metros.
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Kavya N
Hope this means less pressure on Bangalore's infrastructure. But quality of education in tier-2 cities must improve to sustain this growth long-term.
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Vikram M
As a startup founder in Indore, I've seen first-hand how tier-2 talent outperforms metros when given the chance. Lower attrition, more dedication. This report validates our hiring strategy!

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