Hiring momentum shifts towards tier 2 cities
India’s tier 2 cities continue to emerge as key engines driving the nation's employment growth, according to the latest foundit Insights Tracker.
While overall national hiring held steady month-on-month (0%) and grew by 20% YoY, tier 2 markets have surged ahead, growing 28% YoY and outpacing the national average significantly.
Coimbatore (+26%), Nagpur (+24%), and Nasik (+24%) are leading this growth, driven by sectors such as IT, BFSI, manufacturing, and FMCG.
“The hiring momentum shift towards tier 2 cities, especially in IT and entry-level roles, is notable,” said Pranay Kale, chief revenue and growth officer (CRGO) of foundit. “Job seekers now have diverse opportunities closer to home, reflecting India's rich and varied talent landscape. 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.”
As hiring momentum in metros begins to stabilise, tier 2 cities have taken centre stage, buoyed by expanding industries and investments.
While tier 2 cities grew 28% YoY, major metros like Delhi-NCR (+5% YoY), Chennai (+18%), and Bengaluru (+16%) saw comparatively slower growth.
The IT industry has seen exceptional growth in tier 2 cities, jumping 53% YoY, far ahead of the national average of 30%. The logistics and transportation (42%) and energy (38%) sectors also contributed significantly to robust growth in these markets.
Entry level (0–3 years' experience) accounted for 61% of tier 2 job postings, highlighting a robust campus hiring season driven by sectors like BFSI, logistics, IT, and retail.
Hiring in tier 2 cities continues to diversify across business functions. IT remains the top growth driver, but other support and operational roles have gained traction as companies scale core and enable teams beyond metros. The rise in HR and admin (+31%) and procurement roles (+36%) also points to increasing organisational maturity in these locations.
While overall hiring held steady in June 2025 (0% MoM), key consumer-facing sectors and tech roles saw notable month-on-month momentum. Retail led all industries with a 10% MoM rise, driven by festive prep and expansion across tier 2 markets. Energy (+7% MoM) and import & export (+8% MoM) also posted solid gains, signaling renewed infrastructure and trade activity.
Among functions, IT roles surged (+12% MoM), powered by demand for developers and AI/ML specialists. Creative functions (+9% MoM) and senior management roles (+6% MoM) followed, reflecting growing investments in digital campaigns and leadership hiring.
While overall national hiring held steady month-on-month (0%) and grew by 20% YoY, tier 2 markets have surged ahead, growing 28% YoY and outpacing the national average significantly.
Coimbatore (+26%), Nagpur (+24%), and Nasik (+24%) are leading this growth, driven by sectors such as IT, BFSI, manufacturing, and FMCG.
“The hiring momentum shift towards tier 2 cities, especially in IT and entry-level roles, is notable,” said Pranay Kale, chief revenue and growth officer (CRGO) of foundit. “Job seekers now have diverse opportunities closer to home, reflecting India's rich and varied talent landscape. 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.”
As hiring momentum in metros begins to stabilise, tier 2 cities have taken centre stage, buoyed by expanding industries and investments.
While tier 2 cities grew 28% YoY, major metros like Delhi-NCR (+5% YoY), Chennai (+18%), and Bengaluru (+16%) saw comparatively slower growth.
The IT industry has seen exceptional growth in tier 2 cities, jumping 53% YoY, far ahead of the national average of 30%. The logistics and transportation (42%) and energy (38%) sectors also contributed significantly to robust growth in these markets.
Entry level (0–3 years' experience) accounted for 61% of tier 2 job postings, highlighting a robust campus hiring season driven by sectors like BFSI, logistics, IT, and retail.
Hiring in tier 2 cities continues to diversify across business functions. IT remains the top growth driver, but other support and operational roles have gained traction as companies scale core and enable teams beyond metros. The rise in HR and admin (+31%) and procurement roles (+36%) also points to increasing organisational maturity in these locations.
While overall hiring held steady in June 2025 (0% MoM), key consumer-facing sectors and tech roles saw notable month-on-month momentum. Retail led all industries with a 10% MoM rise, driven by festive prep and expansion across tier 2 markets. Energy (+7% MoM) and import & export (+8% MoM) also posted solid gains, signaling renewed infrastructure and trade activity.
Among functions, IT roles surged (+12% MoM), powered by demand for developers and AI/ML specialists. Creative functions (+9% MoM) and senior management roles (+6% MoM) followed, reflecting growing investments in digital campaigns and leadership hiring.
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