Nasik, Nagpur, Coimbatore Lead Tier-2 City Growth, Buoyed by Staffing, BFSI, and IT Services: foundit

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

• 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

• 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.