Employment in the technology sector is accelerating in India's Tier-2 cities, supported by expanding industry and investment in June 2025. According to a TalentPlatformFoundit report, employment activity in tier-2 cities is well above the national average.
Total employment in the country rose 20% in June 2025, but recruitment in tier-2 cities increased 28% year-on-year, the Job Platform said.
IT industry employment jumped year-over-year at 53%, well above the national average of 30%, followed by the logistics and transport (42%) and energy (38%) sectors.
Each month, its roles skyrocketed by 12%, driven by the demand of developers and AI/ML experts.
It remains a growth driver, but other support and operational roles are gaining momentum as companies expand their cores and enable teams beyond the Metro. The employment roles for marketing and communications employment were 24%, sales and business development were 28%, and the roles for HR and manager were 31% in small cities, respectively.
Monthly, the role of consumer sectors and technology saw significant momentum. Retail led all the industry with 10% mamarise, from preparing and expanding celebrations across the Tier-2 market.
Among the Tier-2 cities, Coimbatore (26% year-on-year), Nagpur (24%) and Nasik (24%) lead the adoption of Tier-2, driven by the IT, banking, finance, manufacturing and FMCG sectors.
“For employers, these cities offer strategic opportunities for sustainable growth due to infrastructure improvements, target investments and geographically diversifying strategic intentions.
In contrast, the adoption trends in Tier-1 cities such as Delhi-NCR (+5% previous year), Chennai (+18%) and Bengaluru (+16%) remained lower than their Tier-2 counterparts.
Employment of freshmen with 0-3 years of experience accounted for 61% of Tier 2 job postings and was driven by sectors such as IT, retail, logistics and BFSI.
The Healthcare, Education and Manufacturing sectors have recruited primarily medium-level talent with four to nine years of experience from Tier-2 cities. In June 2025, advanced levels of recruitment took place in the telecom, energy and healthcare sectors in non-metro cities.
