Report: Smaller Centres Outpace Metros in Hiring Activity

Small cities and towns in India are experiencing a remarkable surge in hiring, outpacing metropolitan areas significantly. According to the Randstad Talent Insights Report 2025, job openings in tier-2 cities have increased by nearly 42%, compared to a 19% rise in tier-1 cities. This trend highlights the growing economic importance of smaller urban centers, particularly in sectors such as banking, financial services, manufacturing, retail, and IT. The report, which covers data from September 2024 to February 2025, reveals a shift towards decentralized economic growth, positioning tier-2 cities as emerging talent hubs.

Significant Growth in Tier-2 Cities

The Randstad report indicates that tier-2 and tier-3 cities are rapidly becoming key players in the job market. Anjali Raghuvanshi, Chief People Officer at Randstad India, emphasized that while tier-1 cities continue to show strong hiring trends, the impressive growth in smaller cities reflects a broader distribution of talent across the country. Factors contributing to this growth include the increasing economic relevance of these cities, a steady influx of skilled graduates from local educational institutions, and ongoing infrastructure development. This shift not only provides new opportunities for job seekers but also supports the overall economic landscape of India.

Leading Cities in Hiring Demand

Among tier-1 cities, Bengaluru remains at the forefront of talent demand, showcasing higher hiring numbers across various sectors and experience levels. Mumbai continues to assert its dominance, particularly in the energy and utilities sector, where it is a key player for mid-level and senior positions. In tier-2 cities, Chandigarh has emerged as a significant contender, experiencing a notable rise in hiring across multiple industries. Additionally, Gandhinagar and Aurangabad have joined the ranks of tier-2 cities witnessing increased job opportunities. Vadodara has also shown substantial growth in hiring, particularly in the energy and utilities, pharmaceutical, healthcare, and manufacturing sectors.

Top Hiring Roles and Emerging Skills

The report highlights specific roles that are in high demand across various sectors. In the banking, financial services, and insurance (BFSI) sector, positions such as investment banking analysts, business operations specialists, and business analysts are among the most sought after. Notably, the role of a cyber fraud analyst has entered the top 20 skills list for the first time, reflecting the growing need for expertise in combating advanced cyber threats. In the manufacturing and automotive sectors, roles like production managers, supply chain and logistics professionals, and operations management specialists continue to dominate hiring trends. This evolving job market underscores the importance of adapting to new skills and roles as industries evolve.


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