New Delhi, February 23: A recent report reveals that nearly 70% of jobs in India are available in non-metro areas, specifically Tier-2 and Tier-3 cities. According to the report released on Monday, Tier-3 cities account for 40% of employment, while Tier-2 cities contribute 29%. In contrast, Tier-1 cities hold a 31% share of the job market.
Staffing firm Quess Corp states that the Banking, Financial Services, and Insurance (BFSI) sector, along with manufacturing, employs over 45% of the workforce in Tier-3 cities, with the retail sector contributing 33%.
Rapidly growing cities like Coimbatore, Indore, Surat, Vadodara, Noida, and Lucknow are emerging as major employment hubs. Increasing consumption and industrial corridors are reshaping the labor market in these areas.
Lohit Bhatia, CEO of Quess Corp, noted, “These figures indicate that job opportunities are expanding beyond major cities due to retail expansion, manufacturing corridors, and the decentralization of services.”
The retail, BFSI, manufacturing, telecom, FMCG/FMCG, and logistics sectors are collectively providing the majority of jobs. These sectors remain key drivers of employment growth in Tier-2 and Tier-3 markets.
Various positions in these sectors include store operations, sales, plant operations, and supply chain roles. This trend signifies a rapid increase in formal employment in Tier-2 and Tier-3 cities across India.
The study, based on 483,000 employees, found that 64% are under 30 years old. Additionally, 55% of employees have been in their current jobs for less than a year, indicating a shift in employment due to project-based work and seasonal demand.
During the first half of the fiscal year 2026, over 26,000 new Universal Account Numbers (UAN) were created, granting employees in the informal sector access to provident fund (PF), ESI, insurance, and other statutory benefits.
The report highlights that while UANs are being established nationwide, a significant portion of the workforce is transitioning towards Tier-2 and Tier-3 cities. This shift indicates that as employment in non-metro areas grows, social security coverage is also strengthening.
