70% of India’s Jobs Now Located Outside Metros, Tier-3 Cities Lead Employment Growth: Quess Corp Report

New Delhi, February 23: Nearly 70 per cent of jobs in India are now based outside major metropolitan areas, with Tier-3 cities emerging as the largest employment hubs, according to a new report released on Monday by staffing firm Quess Corp.

The study highlights a significant decentralization of employment, with Tier-3 cities accounting for 40 per cent of total jobs and Tier-2 cities contributing 29 per cent. In comparison, Tier-1 metropolitan cities account for 31 per cent of employment.

Tier-3 and Tier-2 Cities Drive Workforce Expansion​

The report indicates that employment growth is increasingly concentrated in rapidly expanding urban centers such as Coimbatore, Indore, Surat, Vadodara, Noida, and Lucknow. These cities are witnessing strong momentum due to expanding consumer markets and industrial corridors that are reshaping local labor markets.

According to the findings, the shift reflects broader structural changes in India’s employment landscape, with opportunities spreading beyond traditional metro hubs.

Lohit Bhatia, Chief Executive Officer of Quess Corp, stated that the data underscores the decentralization of opportunity driven by retail expansion, manufacturing corridors, and distributed service delivery models.

BFSI and Manufacturing Lead Tier-3 Employment​

Sector-wise, the Banking, Financial Services, and Insurance segment along with manufacturing accounts for more than 45 per cent of the workforce in Tier-3 towns. The retail sector contributes another 33 per cent.

In addition, retail, BFSI, EMPI or Manufacturing, telecom, FMCG and FMCD, and logistics collectively account for the majority of jobs in Tier-2 and Tier-3 markets. These sectors are also the primary engines of employment growth outside metropolitan regions.

Roles span a broad spectrum, including store operations, sales, plant management, and supply chain functions. The data points to the growing formalization and diversification of employment across smaller cities.

Young Workforce and High Mobility Patterns​

The study, which covered 4.83 lakh workers, reveals that 64 per cent of the workforce is under the age of 30. Additionally, 55 per cent of employees have been in their current roles for less than a year.

This high level of workforce mobility reflects project-based staffing patterns and seasonal demand cycles, particularly in sectors such as retail, logistics, and manufacturing.

Formalization Gains Momentum in H1 FY26​

During the first half of FY26, more than 26,000 new Universal Account Numbers were generated. This expansion has extended access to provident fund, Employees' State Insurance, insurance, and other statutory benefits to workers who were previously part of the informal sector.

The report notes that while Universal Account Numbers are being generated nationwide, the trend of workforce deployment toward Tier-2 and Tier-3 cities is closely aligned with increased access to payroll-linked social security benefits. This signals that employment growth outside metros is increasingly accompanied by greater formalization of the workforce.

The findings underline a structural shift in India’s job market, where employment expansion is no longer concentrated in large metropolitan centers but is increasingly rooted in emerging urban hubs across the country.