Nasik, Nagpur, Coimbatore Lead Tier-2 City Growth, Buoyed by Staffing, BFSI, and IT Services: foundit
A new report on job hiring trends from
foundit (formerly Monster APAC & ME), Asia’s leading jobs and talent platform, reveals that India's Tier-2 cities have experienced steady growth over the past few years, with overall hiring increasing by 12% in both 2022 and 2023 after a significant surge of 41% in 2021. Nasik, Nagpur, and Coimbatore have emerged as front-runners in job growth, primarily driven by the Recruitment and Staffing, Banking, Financial Services, and Insurance (BFSI), and IT-Software and Software Services sectors. While the growth rate is projected to moderate to 2% in 2024, the continued positive trend indicates ongoing expansion in employment opportunities within these cities.
Tier-2 Cities Posting Substantial Growth
As companies expand beyond metropolitan areas, Tier-2 cities are also fast becoming hotspots for employment opportunities. The top six cities showcasing significant growth are:
Table: Growth Percentage of Top Tier-2 Cities
| City |
2021 Growth |
2022 Growth |
2023 Growth |
2024 Projected Growth |
| Nasik |
+76% |
+91% |
+186% |
+12% |
| Thiruvananthapuram |
+77% |
+11% |
+4% |
+24% |
| Coimbatore |
+55% |
+19% |
+8% |
+21% |
| Thane |
+67% |
+31% |
+7% |
+25% |
| Kochi |
+63% |
+11% |
+9% |
+21% |
| Nagpur |
+24% |
+27% |
+7% |
+17% |
- Nasik: A rising star among Tier-2 cities, Nasik recorded an extraordinary growth of 186% in 2023, with projections indicating a further 12% increase in 2024. The city’s rapid expansion is driven by a booming Recruitment and Staffing industry, along with significant contributions from IT-Software and Software Services and Construction, Engineering, Cement, and Metals sectors.
- Thiruvananthapuram: Displayed modest growth of 4% in 2023, with a notable acceleration projected at 24% in 2024. Key sectors fueling this growth include Automobile, Auto Ancillary, and Auto Components, marking the city as an emerging automotive hub, along with strong contributions from IT-Software and Software Services and Education, Teaching, and Training industries.
- Coimbatore: Maintained steady growth with an 8% increase in 2023 and an anticipated 21% rise in 2024. The city’s development is primarily powered by the IT-Software and Software Services sector, with additional growth driven by Recruitment and Staffing and Education, Teaching, and Training industries.
- Thane: Reported a growth of 7% in 2023, with projections for a more robust 25% increase in 2024. IT-Software and Software Services, Recruitment and Staffing, and Construction, Engineering, Cement, and Metals sectors are central to this expansion, with the BFSI industry expected to recover in 2024 following a slight contraction.
- Kochi: Experienced a 9% growth in 2023, with expectations of a 21% increase in 2024. This growth is fueled by the IT-Software and Software Services sector, along with notable contributions from the Recruitment and Staffing and BFSI sectors, positioning Kochi as a prominent employment hub in southern India.
- Nagpur: Displayed consistent growth, with a 7% increase in 2023 and a projected 17% rise in 2024. The city’s development is driven by the Recruitment and Staffing sector, alongside significant contributions from BFSI and Construction, Engineering, Cement, and Metals industries.
Commenting on tier-2 job trends, Saurabh Srivastava, CMO of foundit, said “The surge of activity in Tier-2 cities like Nasik, Nagpur, and Coimbatore is transforming India’s job market. These cities are emerging as hubs for industries like recruitment, banking, IT services, and manufacturing, creating a rising need for skills across tech, management, sales, and finance. This shift is not only attracting professionals but also driving economic growth, underscoring the potential of Tier-2 cities to redefine India’s job landscape for both companies and communities.”
Industries Driving Growth in Tier-2 Cities
The surge in employment opportunities is largely attributed to specific industries that have expanded their operations in Tier-2 cities.
Table: Industry Growth in Tier-2 Cities
| Industry |
2021 Growth |
2022 Growth |
2023 Growth |
2024 Projected Growth
(through Nov – Dec ‘24)
|
| Recruitment & Staffing |
+20% |
+14% |
+38% |
-45% |
| BFSI (Banking, Financial Services, Insurance) |
+68% |
+81% |
+24% |
-18% |
| IT-Software & Software Services |
+116% |
+27% |
+2% |
-5% |
| Construction, Engineering, Cement, Metals |
+31% |
-4% |
+71% |
-7% |
| Automobile, Auto Ancillary, Auto Components |
+42% |
+34% |
+20% |
+19% |
| Insurance |
+86% |
+145% |
-30% |
-37% |
| Semiconductors & Electronics |
+114% |
+99% |
+34% |
+15% |
| Advertising, PR, MR, Event Management |
+30% |
+39% |
+53% |
+36% |
| BPO, Call Centre, ITES |
+26% |
+1% |
+21% |
-13% |
| Textiles, Garments, Accessories |
+69% |
+1% |
+32% |
+24% |
| Retail & Wholesale |
+69% |
+101% |
+143% |
-16% |
| Education, Teaching, Training |
+4% |
+7% |
+14% |
+8% |
| Pharma, Biotech, Clinical Research |
+21% |
+14% |
+28% |
+11% |
- Semiconductors & Electronics: Saw substantial growth of +34% in 2023, though expected to moderate to +15% in 2024. This expansion is largely attributed to global chip shortages, increased demand for electronics, and supportive government policies.
Top cities for growth are Surat, Nasik, and Nagpur.
- Automobile, Auto Ancillary, Auto Components: Witnessed consistent growth of +20% in 2023 due to high demand and production. Projected to grow by +19% in 2024, this growth reflects technological advancements, a shift towards electric vehicles, and increased consumer interest.
Top cities driving this growth include Thiruvananthapuram, Coimbatore, and Lucknow.
- Advertising, PR, MR, Event Management: Experienced significant growth of +53% in 2023, with continued expansion expected at +36% in 2024. This growth reflects increased marketing activities and digital engagement efforts by businesses.
Top cities for growth include Ahmedabad, Thane, and Kochi.
- Education, Teaching, Training: Exhibited a steady growth of +14% in 2023 and is projected to increase by +8% in 2024. This ongoing demand highlights the importance of skill development and upskilling.
Top cities in education growth are Kochi, Lucknow, and Coimbatore.
- IT-Software & Software Services: Achieved a modest growth of +2% in 2023 and is projected to decline slightly by -5% in 2024. This slight reduction follows years of substantial expansion, indicating potential market stabilisation.
Top cities for IT sector growth include Kochi, Thane, and Jaipur.
- Recruitment & Staffing: Exhibited a moderate growth of +38% in 2023, driven by increased hiring across various sectors. However, a -45% decline is projected in 2024, suggesting market corrections after a period of strong demand.
Top cities for growth include Nasik, Nagpur, and Coimbatore.
- Insurance: Experienced a -30% decline in 2023 following strong growth in previous years, with an additional -37% projected decline in 2024. This volatility reflects a potential market correction or saturation.
Top cities with growth in this sector include Ahmedabad, Lucknow, and Nagpur.
- Construction, Engineering, Cement, Metals: Displayed robust growth of +71% in 2023, though a -7% decline is projected in 2024. This performance is driven by infrastructure development projects and urban expansion.
Key cities contributing to growth include Ahmedabad, Thane, and Nagpur.
- BPO, Call Centre, ITES: Achieved a growth of +21% in 2023, though a -13% decline is anticipated in 2024 as the industry stabilizes. This trend is driven by steady demand for outsourcing services and remote support solutions.
Top cities showing growth include Nagpur, Thane, and Kochi. 
About foundit - APAC & Middle East
foundit, formerly Monster (APAC & ME) is Asia’s leading jobs & talent platform offering comprehensive employment solutions to recruiters and job seekers across APAC & ME. In addition to a powerful AI-powered job search, foundit offers e-learning, assessments, and services related to resume creation, interview preparation, and professional networking. Since its inception, the company has assisted over 120 million job seekers across 18 countries in connecting them with the right job opportunities and upskilling. foundit is now also the Official Talent Partner of the Badminton World Federation across 20 key world tour events.
Over the last two decades, the company has been a leader in the world of recruitment solutions and has launched a cutting-edge solution to give recruiters access to passive candidates in addition to active ones. With the use of advanced technology, foundit is seeking to efficiently bridge the talent gap across industry verticals, experience levels, and geographies. Today, foundit is committed to enabling and connecting the right talent with the right opportunities by harnessing the power of deep tech to sharpen hyper-personalised job searches and offer precision hiring. Additionally, foundit has been recognised as a Great Place To Work, reflecting its dedication to fostering a supportive and dynamic work culture.
To learn more about foundit in APAC & Gulf, visit:
www.foundit.in |
www.founditgulf.com |
www.foundit.sg |
www.foundit.my |
www.foundit.com.ph |
www.foundit.com.hk |
www.foundit.id Source: BUSINESS WIRE INDIA
