India’s employment landscape is rapidly shifting beyond metropolitan hubs, with nearly 70% of jobs now located in non-metro cities, according to a new report released by Quess Corp.
The report highlights that Tier-3 cities alone account for 40% of total employment, while Tier-2 cities contribute 29%. In comparison, Tier-1 cities hold a 31% share of jobs, indicating a significant decentralisation of economic opportunities.
BFSI, Manufacturing and Retail Drive Job Growth
According to the study, the BFSI (Banking, Financial Services and Insurance) and manufacturing sectors together employ over 45% of the workforce in Tier-3 cities. The retail sector accounts for another 33% of jobs in these regions.
Fast-growing cities such as Coimbatore, Indore, Surat, Vadodara, Noida, and Lucknow have emerged as major employment hubs. Rising consumption and the development of industrial corridors are reshaping labour markets in these cities.
Quess Corp CEO Lohit Bhatia said the data reflects how retail expansion, manufacturing corridors, and the decentralisation of services are spreading employment opportunities beyond large metros.
Key Sectors Creating Maximum Jobs
The report identifies retail, BFSI, manufacturing, telecom, FMCG/FMCD, and logistics as the primary engines of employment growth in Tier-2 and Tier-3 markets.
Job roles in these sectors include:
- Store operations
- Sales
- Plant operations
- Supply chain management
The findings indicate that formal employment is expanding rapidly in non-metro India.
Young Workforce and Rising Social Security Coverage
Based on a study of 4.83 lakh employees, the report found that 64% of the workforce is under 30 years of age. Additionally, 55% of employees have been in their current roles for less than one year, suggesting high job mobility driven by project-based and seasonal demand.
During the first half of FY2026, more than 26,000 new Universal Account Numbers (UANs) were created, enabling workers previously in the informal sector to access Provident Fund (PF), ESI, insurance, and other statutory benefits.
While UAN registrations are occurring nationwide, the report notes a clear shift of workforce movement toward Tier-2 and Tier-3 cities. This trend underscores not only rising employment in non-metro regions but also strengthening social security coverage across India’s expanding labour market.
