India’s job market is undergoing a seismic shift, with nearly 70 percent of employment opportunities now concentrated in Tier-2 and Tier-3 cities, bypassing the traditional metros. A comprehensive report released on Monday reveals that Tier-3 cities alone account for 40 percent of jobs, while Tier-2 hubs contribute 29 percent. In stark contrast, Tier-1 metros hold just 31 percent.
Staffing giant Quess Corp’s analysis highlights the BFSI (Banking, Financial Services, and Insurance) and manufacturing sectors as powerhouses, together employing over 45 percent of the workforce in Tier-3 areas. Retail follows closely with a 33 percent share, underscoring a retail boom in these emerging markets.
Cities like Coimbatore, Indore, Surat, Vadodara, Noida, and Lucknow are transforming into employment epicenters. Fueled by rising consumer demand and strategic industrial corridors, these locations are reshaping India’s labor landscape.
Quess Corp CEO Lohit Bhatia emphasized, ‘Retail expansion, manufacturing corridors, and service sector decentralization are driving jobs away from big cities into smaller urban centers.’
Key sectors propelling this growth include retail, BFSI, manufacturing/engineering, telecom, FMCG/FMCD, and logistics. Roles span store operations, sales, plant management, and supply chain logistics, signaling robust formal job creation in non-metro India.
Based on data from 483,000 employees, the study found 64 percent under 30 years old, with 55 percent in their current roles for less than a year. This points to project-based and seasonal hiring trends.
In the first half of FY2026, over 26,000 new Universal Account Numbers (UANs) were created, bringing informal workers into the fold of provident fund, ESI, insurance, and statutory benefits. While UAN registrations span the nation, the workforce migration to Tier-2 and Tier-3 cities is strengthening social security coverage in these regions, heralding a more inclusive economic future.