Hiring booms in small cities: Tier-2 job growth doubles metro pace, says report

India's tier-2 cities saw a 42% surge in job openings, outpacing the 19% growth in tier-1 metros, according to the Randstad Talent Insights Report 2025. This decentralization reflects companies tapping into talent beyond major urban centers.

India's tier-2 cities are fast emerging as new hiring powerhouses, witnessing a 42% jump in job openings—more than double the 19% growth seen in tier-1 metros—according to the Randstad Talent Insights Report 2025. The report highlights a significant shift towards decentralised economic development, as companies increasingly tap into talent beyond traditional urban centres.

Emerging talent hubs beyond the metros

The first edition of the report, covering the period from September 2024 to February 2025, captures data from six major industries: banking, financial services and insurance (BFSI), manufacturing and automotive, IT, pharma, healthcare and life sciences (PHL), retail, FMCG and FMCD, and energy and utilities.

"Tier-1 cities continue to show strong hiring activity across sectors. But what's remarkable is how tier-2 and 3 cities are quickly becoming recruitment hotspots," said Anjali Raghuvanshi, Chief People Officer and Senior Director (Business Innovation) at Randstad India. "This reflects the untapped potential and the broader distribution of skilled talent across India."

She attributed the trend to growing economic relevance of smaller cities, a steady flow of skilled graduates from regional institutes, and focused infrastructure development.

Bengaluru, Mumbai lead in tier-1; Chandigarh, Vadodara shine in tier-2

Among metros, Bengaluru remains the frontrunner in talent demand across all experience levels and sectors. Mumbai solidified its leadership in the energy and utilities sector at mid- and senior-levels, while also reinforcing its strength in BFSI, retail, FMCG, and FMCD.

In the tier-2 segment, Chandigarh made a significant leap, recording strong hiring growth across industries. Vadodara also showed a major uptick in hiring and demand rankings, particularly in energy and utilities, pharma and life sciences, and manufacturing.

New entrants Gandhinagar and Aurangabad also made it to the top tier-2 hiring cities list.

Top roles and skills in demand

Within the BFSI sector, roles in investment banking, business operations, and business analysis dominated hiring across all levels. Notably, the role of cyber fraud analyst made its debut in the Top 20 most in-demand skills—highlighting the growing concern around digital financial crimes.

The manufacturing and automotive sector continued to focus on hiring production managers, logistics professionals, and operations specialists, reflecting steady industrial demand.

Decentralised growth is here to stay

The findings signal a fundamental shift in how and where companies source talent, with India’s smaller cities gaining ground as viable alternatives to metros.