Around 70% of jobs in India are situated in non-metro areas, with Tier-3 cities alone holding 40% of employment and Tier-2 hubs adding another 29%, compared to 31% in Tier-1 cities, as per a report by Quess Corp. The BFSI & Manufacturing sectors contribute to over 45% of the workforce from Tier-3 towns, while retail contributes 33%.
Opportunities are mainly concentrated in rapidly growing centers like Coimbatore, Indore, Surat, Vadodara, Noida, and Lucknow, where increasing consumption and industrial developments are reshaping local labor markets, the report highlighted. Lohit Bhatia, CEO of Quess Corp, mentioned that the data indicates a decentralization of opportunity fueled by retail expansion, manufacturing corridors, and distributed service delivery.
Retail, BFSI, EMPI/Manufacturing, telecom, FMCG/FMCD, and logistics sectors collectively account for the majority of jobs and are the primary drivers of employment growth in Tier-2 and Tier-3 markets. Jobs in these sectors range from store operations and sales to plant and supply-chain roles, reflecting the growth of India’s formal workforce in Tier-2 and Tier-3 regions.
A study covering 4.83 lakh workers revealed that 64% are under 30 years old, and 55% have been in their current role for less than a year, indicating high mobility in employment cycles driven by project-based staffing and seasonal demand. During H1 FY26, more than 26,000 new Universal Account Numbers (UANs) were generated, providing access to provident fund, ESI, insurance, and other statutory benefits for previously informal workers.
The formalization process, marked by the creation of UANs nationwide, is happening concurrently with a significant shift in workforce deployment towards Tier-2 and Tier-3 locations, connecting employment growth beyond metros with broader access to payroll-linked social security, the report added.
