NEW DELHI — Nearly seven out of every 10 jobs in India are now based outside major metropolitan areas, underscoring a sharp shift in employment toward Tier-2 and Tier-3 cities, according to a new workforce report released Monday.
The study found that non-metro regions account for about 69 percent of total employment, with Tier-3 cities alone hosting roughly 40 percent of jobs and Tier-2 cities contributing another 29 percent. By comparison, Tier-1 metropolitan centers account for about 31 percent of the workforce.
The report said banking, financial services and insurance, along with manufacturing, together make up more than 45 percent of employment in Tier-3 towns, while the retail sector accounts for another 33 percent. Employment growth is being driven by expanding consumer markets, manufacturing corridors and distributed service operations.
Fast-growing hubs such as Coimbatore, Indore, Surat, Vadodara, Noida and Lucknow are emerging as major employment centers, reshaping local labor markets as industrial and consumption-led growth accelerates in these regions.
“The data reflects the decentralization of opportunity driven by retail expansion, manufacturing corridors, and distributed service delivery,” said Lohit Bhatia, Chief Executive Officer of Quess Corp, which authored the report.
Retail, banking and financial services, manufacturing, telecom, fast-moving consumer goods and durables, and logistics together account for the bulk of jobs nationwide and are the primary engines of employment growth in Tier-2 and Tier-3 markets. Roles range from store operations and sales to factory, logistics and supply-chain positions, highlighting the expansion of India’s formal workforce beyond major cities.
Based on a study of 483,000 workers, the report found that 64 percent of employees are under the age of 30, while 55 percent have been in their current roles for less than a year. This reflects high workforce mobility driven by project-based hiring and seasonal demand patterns.
The report also noted progress in workforce formalization. During the first half of fiscal year 2026, more than 26,000 new Universal Account Numbers were created, expanding access to provident fund coverage, employee state insurance, insurance and other statutory benefits for workers previously in the informal sector.
“While UANs are being generated across the country, this formalization is occurring alongside the sharp shift in workforce deployment toward Tier-2 and Tier-3 locations, linking employment growth outside metros with wider access to payroll-linked social security,” the report said. (Source: IANS)
