IT hiring soars by 53% in Tier-2 cities in June 2025; Demand surges for AI-ML specialists

Hiring in the tech sector has accelerated in India's Tier-2 cities, buoyed by expanding industries and investments in June 2025. According to a report by talent platform foundit, the hiring activity in the Tier-2 cities has also outpaced the national average significantly.

Overall hiring in the country grew by 20% in June 2025, but in Tier-2 cities, the recruitment increased by 28% year-on-year, the job platform mentioned.

The IT industry hiring jumped by 53% YoY, far ahead of the national average of 30%, followed by Logistics & Transportation (42%) and Energy (38%) sectors.

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On Month-on-Month basis, IT roles surged by 12%, driven by demand for developers and AI/ML specialists.

While IT remains the top growth driver, other support and operational roles have gained traction as companies scale core and enabling teams beyond metros. Hiring for marketing & communications job roles stood at 24%, sales and business development at 28%, and HR and admin roles at 31% in smaller cities, respectively.

On a month-on-month basis, consumer-facing sectors and tech roles saw notable momentum. Retail led all industries with a 10% MoM rise, driven by festive prep and expansion across Tier-2 markets.

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Among the Tier-2 cities, Coimbatore (at 26% YoY), Nagpur (24%), and Nasik (24%) led in Tier-2 hiring, driven by IT, Banking and Financial, Manufacturing, and FMCG sectors.

"For employers, these cities offer strategic opportunities for sustained growth, driven by improved infrastructure, targeted investments, and the strategic intent to diversify geographically. This growth, the strongest we've seen in recent years, clearly underlines Tier-2 cities' increasing importance in India's employment landscape," said Pranay Kale, Chief Revenue & Growth Officer (CRGO) of foundit.

In contrast, the hiring trend in Tier-1 cities such as Delhi-NCR (+5% YoY), Chennai (+18%), and Bengaluru (+16%) remained lower than their Tier-2 counterparts.

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Freshers hiring, with 0-3 years of experience, accounted for 61% of Tier-2 job postings, fuelled by sectors like IT, retail, logistics, and BFSI.

Healthcare, education, and manufacturing sectors recruited majorly mid-level talent with 4-9 years of experience from Tier-2 cities. Senior-level hiring primarily happened in telecom, energy, and healthcare sectors in non-metro cities in June 2025.