Forget the metros—India’s employment engine is revving up in smaller cities. A new report from Quess Corp shows that Tier-2 and Tier-3 urban centers generate around 70 percent of the country’s jobs. Breaking it down, Tier-3 cities lead with 40 percent, Tier-2 at 29 percent, leaving Tier-1 cities with a diminished 31 percent slice.
In Tier-3 markets, BFSI and manufacturing sectors command more than 45 percent of jobs, with retail securing 33 percent. This diversification is creating a balanced job ecosystem beyond glittering skyscrapers.
Emerging hotspots such as Coimbatore, Indore, Surat, Vadodara, Noida, and Lucknow are at the forefront, propelled by consumption surges and industrial developments. These cities are not just growing; they’re becoming the new face of opportunity.
‘The data underscores how retail push, manufacturing hubs, and service offshoring are decentralizing employment,’ noted Quess Corp’s CEO Lohit Bhatia.
Dominant industries—retail, BFSI, manufacturing, telecom, FMCG, and logistics—offer diverse positions from frontline sales to operational roles. This surge indicates formal employment is flourishing in India’s heartland.
The report, surveying 483,000 workers, reveals a youthful workforce: 64 percent below 30, and 55 percent with under a year in their jobs, reflecting dynamic, gig-like patterns amid projects and seasonal needs.
Notably, over 26,000 UANs were issued in early FY2026, formalizing benefits for ex-informal workers. As jobs flock to non-metros, social security nets are expanding, promising equitable growth across urban India.