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India’s Tier-2 cities are rapidly becoming the heart of the country’s employment expansion, particularly in the information technology (IT) sector, according to a new report released on Wednesday by online recruitment platform foundit. The report highlights a 53 per cent year-on-year (YoY) increase in IT hiring within smaller cities, significantly outstripping the national growth average of 30 per cent.

While overall hiring across India remained stable month-on-month in June, the year-on-year hiring growth stood at 20 per cent. However, Tier-2 markets showed a steeper rise, clocking a 28 per cent YoY increase, well above the national trend.

Coimbatore, Nagpur, Nasik Among Top Hiring Hubs

Coimbatore in Tamil Nadu saw the highest growth in hiring activity among Tier-2 cities, registering a 26 per cent increase. It was closely followed by Nagpur and Nasik in Maharashtra, both of which saw a 24 per cent rise. The report attributes this surge to thriving sectors such as IT, banking and financial services (BFSI), manufacturing, and fast-moving consumer goods (FMCG).

Logistics and transportation also emerged as a strong contributor, posting a 42 per cent growth in Tier-2 cities. Similarly, the energy sector expanded by 38 per cent, further bolstering employment prospects in smaller markets.

Metros Show Slower Growth

In contrast, India’s major metropolitan regions posted more modest hiring gains. Delhi-NCR saw a 5 per cent increase in hiring, while Chennai and Bengaluru rose by 18 per cent and 16 per cent respectively, lagging behind their Tier-2 counterparts.

Strategic Shift In Workforce Landscape

Commenting on the shift, Pranay Kale, Chief Revenue & Growth Officer at foundit, 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.”

He added, “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.”

Consumer Sectors And Tech Roles Fuel June Momentum

Beyond the Tier-2 surge, the report also highlighted sector-specific hiring trends. The retail industry led June’s month-on-month hiring momentum with a 10 per cent rise, driven largely by pre-festive season expansions, especially in non-metro regions.

Other sectors showing notable MoM gains included energy (+7 per cent) and import-export (+8 per cent), indicating a resurgence in infrastructure development and trade activity.