Over 70% of India's Workforce Resides in Tier-2 and Tier-3 Cities
Synopsis
A new report reveals that Tier-2 and Tier-3 cities in India are home to 70% of the workforce, with significant contributions from sectors like BFSI and retail. Discover the implications of this trend for the job market and economic growth in non-metro areas.
Key Takeaways
70% of jobs in India are in Tier-2 and Tier-3 cities.
40% of this workforce is in Tier-3 cities.
The BFSI and manufacturing sectors drive employment growth.
The workforce is predominantly young, with 64% under 30.
High job mobility is evident, with 55% having less than a year in their roles.
New Delhi, Feb 23 (NationPress) Approximately 70% of employment opportunities in India are situated outside major metropolitan areas, with Tier-3 cities contributing a substantial 40% of this workforce. In contrast, Tier-2 cities offer 29% of jobs, while Tier-1 cities have 31%, according to a recent report.
The report from staffing firm Quess Corp highlights that the BFSI and manufacturing sectors alone make up over 45% of the workforce in Tier-3 cities, with retail accounting for 33%.
Key growth centres such as Coimbatore, Indore, Surat, Vadodara, Noida, and Lucknow are witnessing a surge in opportunities, as increasing consumption and the development of industrial corridors are transforming local job markets.
“This data illustrates the decentralization of opportunities, fueled by retail expansion, manufacturing networks, and widespread service delivery,” stated Lohit Bhatia, Chief Executive Officer of Quess Corp.
Industries including retail, BFSI, EMPI/manufacturing, telecommunications, FMCG/FMCD, and logistics dominate the job landscape, serving as the main drivers of employment growth in Tier-2 and Tier-3 regions.
Opportunities span various sectors, ranging from store operations and sales to plant and supply chain roles, reflecting the expanding formal workforce in these regions.
In a study of 483,000 workers, it was found that 64% are under the age of 30, and 55% have held their current positions for less than a year, indicating a trend of high mobility within employment cycles, influenced by project-based staffing and seasonal demands.
In the first half of FY26, over 26,000 new Universal Account Numbers (UANs) were registered, granting access to provident funds, ESI, insurance, and other statutory benefits to previously informal workers.
“While UANs are being issued nationwide, this formalization occurs alongside a significant shift in workforce deployment towards Tier-2 and Tier-3 locations, linking employment growth outside metropolitan areas with improved access to payroll-linked social security,” the report noted.
aar/pk
Point of View
Highlighting the growing importance of Tier-2 and Tier-3 cities in job creation. As opportunities expand in these regions, it not only fosters local economies but also addresses the issue of unemployment in metropolitan areas. The findings suggest a promising trend towards decentralization that could reshape the future job market.
NationPress
6 May 2026
Frequently Asked Questions
What percentage of jobs are in Tier-2 and Tier-3 cities in India?
Around 70% of jobs in India are located in Tier-2 and Tier-3 cities, with Tier-3 cities accounting for 40% and Tier-2 cities for 29%.
Which sectors are contributing to employment in Tier-3 cities?
The BFSI and manufacturing sectors contribute over 45% of the workforce in Tier-3 towns, while retail accounts for 33%.
What trends are observed regarding the workforce age in these cities?
The study found that 64% of the workforce is under the age of 30, indicating a youthful labor demographic.
How many new Universal Account Numbers (UANs) were created?
In the first half of FY26, over 26,000 new Universal Account Numbers (UANs) were established to provide benefits to informal workers.
What does the report say about job mobility?
It indicates that 55% of the workforce has been in their current role for less than a year, suggesting high employment mobility.
