Job postings in India’s tier-3 cities grew 30.6% in Q1FY27, more than four times the 7.3% growth recorded in tier-1 markets, according to a report by early-career talent platform Apna. Tier-2 cities grew 16.1% in the same period. The report, titled Bharat@79, examines how India’s employment geography is shifting as the country marks 79 years of independence.
Among emerging cities, Guwahati led the momentum with job postings rising 48.4% year on year, followed by Varanasi at 41.7% and Dehradun at 28.5%. Quick commerce was the fastest-growing sector across all markets, with postings up 60.3% year on year. Supply chain, manufacturing and operations also showed strong demand across smaller cities. The report noted that while tier-1 markets still account for the majority of hiring demand, the pace of growth now points to a broader dispersion of opportunity.
“India’s employment story can no longer be understood through a handful of large cities,” said Apna CEO Kartik Narayan. “Opportunity is spreading into emerging markets, while AI is changing the skills required within everyday jobs.” Narayan added that the next phase of India’s workforce growth will depend on how effectively emerging talent markets can connect to the opportunities being created within them.
Gen Z accounted for 72.9% of all job applications in Q1FY27, with engagement stronger in tier-2 markets at 59.4% compared to 56% in tier-1 cities. Postings seeking AI skills grew 112.4% year on year, but much of this demand is appearing within existing roles such as video editing, graphic design, digital marketing, business development and teaching rather than through the creation of standalone AI positions.
The growth pattern points to a structural shift in where India creates employment. The cities that historically fed talent to metros through migration are now generating their own job markets, driven by consumer-facing sectors that follow demand rather than corporate headquarters. AI is entering these markets not as a separate employment category but as a new layer of capability embedded in roles that already exist. Tier-1 cities still dominate in volume, but the pace of growth now sits elsewhere.
Source: Economic Times
