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Tier II, III Cities Emerge as Major Talent Hubs, Driving Hiring Beyond Metros

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News18•20-09-2026, 15:15
Tier II, III Cities Emerge as Major Talent Hubs, Driving Hiring Beyond Metros
- •A new report reveals 69% of organizations increased hiring from tier II and III cities by over 30% in the last two years, shifting India's hiring landscape.
- •55% of employers anticipate the majority of their hiring will move to smaller cities within the next three years, indicating an accelerating trend.
- •Cost efficiency (39%), stronger employee loyalty (26%), and lower attrition (22%) are key benefits of hiring from tier II and III cities.
- •The manufacturing sector is expected to be a major beneficiary, with 37% of respondents predicting it will drive the highest hiring demand in these cities.
- •Despite the talent opportunity, 60% of respondents identify infrastructure and connectivity as significant challenges to expanding hiring beyond metro areas.
Key Questions Answered
According to a report by Genius HRTech Limited, 69 per cent of organisations reported increasing their hiring from tier II and III cities by more than 30 per cent over the last two years.
Cost efficiency is identified as the primary benefit by 39 per cent of respondents, followed by stronger employee loyalty at 26 per cent, lower employee attrition at 22 per cent, and access to untapped talent at 13 per cent.
Around 37 per cent of respondents expect the manufacturing and engineering sector to drive the highest hiring demand in tier II and III cities over the next two to three years.




