Small Cities Lead India's Job Boom: Jaipur, Lucknow, and Indore Outpace Delhi, Mumbai, and Bengaluru

India’s employment landscape is undergoing a major transformation, with smaller cities emerging as the new growth engines. According to a recent report, Tier 2 and Tier 3 cities such as Jaipur, Lucknow, Indore, Coimbatore, Bhubaneswar, Kochi, Surat, Nagpur, and Chandigarh recorded an impressive 21% year-on-year rise in job creation in September 2025. This surge significantly outpaced the 14% growth rate witnessed in major metro hubs like Delhi, Mumbai, and Bengaluru.

E-commerce, Retail, and Tourism Power the Growth

The remarkable employment boost in these smaller cities has been driven by expanding e-commerce warehousing, retail networks, customer service centers, and festive tourism. With the onset of the festive season, companies are scaling up hiring to meet consumer demand — not only in sales and logistics but also in service and operations.
Experts suggest that this isn’t just a seasonal upswing. Instead, it signals a structural shift towards more stable and diversified employment opportunities beyond traditional metropolitan centers.

Anupama Bhimrajka, Vice President of Marketing at Foundit, noted, “While metros continue to perform strongly, non-metro regions are now playing a pivotal role in employment generation. This shift reflects a more decentralized and diverse job market, opening up broader opportunities for job seekers across the country.”

Festive Season Hiring Sparks Demand

Sectors such as sales and marketing witnessed a 5% year-on-year rise in hiring activity during the festive season. Customer service and operations roles followed closely with 4% growth, while the creative and media industry also posted a similar 4% increase. Meanwhile, technology and product development roles remained stable, and finance and accounting positions showed a modest upward trend.
Industry analysts believe this pattern indicates that India’s smaller cities are no longer just talent suppliers to metros — they are becoming self-sustaining employment ecosystems.

Metros Still Growing, But at a Slower Pace

Despite being home to some of India’s largest corporations and industries, the metro cities saw comparatively moderate growth in hiring activity. Delhi-NCR, Mumbai, and Bengaluru recorded an average of 14% rise in job openings, primarily in IT, banking, media, and entertainment sectors.
These industries continued to demand skilled professionals in technology, finance, and marketing, though the pace of expansion remained slower compared to emerging cities.

Job Market Becoming More Balanced Across India

The report paints a promising picture of India’s evolving job landscape. With businesses increasingly investing in smaller cities due to better connectivity, lower operational costs, and growing consumer markets, the employment base is expanding beyond traditional hubs.
This decentralization of employment is creating new economic centers that are likely to sustain long-term job growth. Smaller cities are now not just offering seasonal or temporary opportunities, but stable, full-time roles across multiple sectors.

Future Outlook: A Shift in India’s Employment Map

The surge in hiring in Tier 2 and Tier 3 regions marks a key turning point in India’s labor economy. As digital infrastructure improves and companies expand their regional operations, professionals are finding viable career paths without migrating to metros.
Experts believe this shift will help balance the population load in major cities while ensuring inclusive growth for smaller urban centers.
In essence, India’s smaller cities — once considered job seekers’ stepping stones — are now leading the country’s employment boom, driving optimism for both employers and the workforce.