India’s white-collar job market held steady in June 2025, with a 20% year-on-year (YoY) growth and flat month-on-month (MoM) momentum. But the real story lies outside the metros. According to the latest foundit Insights Tracker (fit), Tier-2 cities outpaced the national average with a robust 28% YoY surge, cementing their status as strategic hiring hubs in India’s evolving employment landscape.
Backed by IT expansion, infrastructure upgrades, and decentralised hiring models, Tier-2 locations are now business-critical growth engines.
Tier-2 Talent Markets Take the Lead
Hiring momentum accelerated across several Tier-2 cities, driven by tech investments, a growing startup presence, and government infrastructure projects.
Top gainers included Coimbatore (+26%), Nagpur (+24%), and Nasik (+24%), followed by Indore (+21%), Bhubaneswar (+18%), and Lucknow (+18%). Cities like Vadodara (+16%), Kochi (+15%), Chandigarh (+9%), and Jaipur (+4%) also contributed to the uptick.
Companies are scaling up backend, R&D, and operational roles in these cities to tap into talent-rich, cost-efficient ecosystems, often with 30–40% lower costs and 50% lower attrition than metros.
Sectoral Trends – IT Dominates, Ops Catch Up
IT – Software & Services continued to lead Tier-2 hiring with a 53% YoY jump, powered by demand in AI, full-stack, and cloud infrastructure roles.
But it wasn’t just tech. Logistics & Transportation (+42%), Energy (+38%), Manufacturing (+37%), and Retail (+36%) also saw strong growth, indicating rising demand for operations, last-mile logistics, and clean-tech capacity.
BFSI (+34%), Consumer Electronics (+32%), and Healthcare (+29%) maintained consistent momentum—signalling the shift from backend support to full business operations in Tier-2 markets.
Functional Trends – Tech, Supply Chain, and HR Scale Up
Hiring is no longer concentrated in just engineering roles. IT functions posted a 48% YoY rise, while Procurement & Supply Chain (+36%), HR & Admin (+31%), and Sales & BD (+28%) also saw sharp increases.
Other key functions seeing traction include Finance & Accounting (+26%), Marketing & Communications (+24%), and Engineering & Production (+23%), showing that businesses are building full-spectrum teams in Tier-2 cities, not just outsourcing entry-level roles.
Experience-Level Trends – Still Fresher First, But the Mix is Maturing
Entry-level roles (0–3 years) accounted for 61% of Tier-2 hiring, driven by IT, BFSI, logistics, and retail. Mid-level professionals (4–9 years) made up 29%, with demand across healthcare, manufacturing, and education. Senior roles (10+ years) represented 10% of activity, particularly in energy, telecom, and infrastructure.
The increasing share of mid and senior hiring signals that Tier-2 cities are becoming long-term talent hubs—not just fresher recruitment zones.
Overall Hiring Snapshot – June 2025
Overall hiring grew 20% YoY, remaining flat MoM (0%).
These metros led the charge in hiring: Mumbai (+21%), Hyderabad (+21%), and Chennai (+18%).
Top sectors driving national growth included IT (+53%), Logistics & Transportation (+42%), Energy (+38%), and Manufacturing (+37%).
Top functional areas were IT (+48%), Procurement & Supply Chain (+36%), and HR & Admin (+31%).
Entry-level roles (0–3 years) formed 61% of Tier-2 demand, followed by mid-level (4–9 years) at 29%, and senior-level (10+ years) at 10%.
In June 2025, India’s job market continues its shift toward decentralisation. Tier-2 cities are emerging as core pillars of employment growth, fuelled by digital transformation, inclusive talent strategies, and evolving workforce priorities. The hiring outlook remains stable and optimistic, with Tier-2 India at the forefront of the next wave of workforce expansion.
