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.
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