IT Hiring in Tier-2 Cities Surges 53% Y-O-Y: Coimbatore, Nagpur, and Nasik Lead the Way
Fresher hiring increased 11% y-o-y in June, driven by non-IT sectors such as hospitality, oil & gas, real estate, and healthcare. Tier-2 cities are becoming key hubs for IT and entry-level roles.
It HiringTier2 CitiesFresher HiringCoimbatoreNagpurReal EstateJul 02, 2025
The IT industry has seen exceptional growth in tier-2 cities, with a 53% year-over-year (y-o-y) increase, far surpassing the national average of 30%. This shift in hiring momentum towards tier-2 cities, especially in IT and entry-level roles, is notable. Job seekers now have diverse opportunities closer to home, reflecting India's rich and varied talent landscape. For employers, these cities offer strategic opportunities for sustained growth, driven by improved infrastructure, targeted investments, and the strategic intent to diversify geographically.
Pranay Kale, Chief Revenue & Growth Officer (CRGO) of foundit, commented, 'This growth, the strongest we've seen in recent years, clearly underlines tier-2 cities' increasing importance in India's employment landscape.' Fresher hiring rose 11% y-o-y in June, driven by non-IT sectors like hospitality (40%), oil & gas (29%), real estate (25%), and strong demand in healthcare.
Naukri's report also highlights the positive trend in the IT sector, which posted a 5% y-o-y growth in June 2025. This turnaround was largely powered by tier-II cities, with Baroda (14%), Coimbatore (10%), Kochi (9%), and Ahmedabad (8%) emerging as key hubs. Fresher hiring was up 11% y-o-y in June, largely led by non-IT sectors, according to Naukri. Hospitality (40%), Oil & Gas (29%), and Real Estate (25%) drove this growth, along with strong traction in healthcare, the report said.
The demand was particularly strong for seasoned professionals with over 16 years of experience, who saw a 16% jump in hiring. Meanwhile, AI/ML roles across industries continued to post robust growth at 42% y-o-y, said Naukri. BPO/ITES continued its upward trend with 19% overall growth in June. The sector also recorded a 23% rise in fresher hiring and saw double-digit growth in mid (20%) and senior (16%) hiring. The highest salary band (20+ LPA) saw 24% growth in hiring within the sector.
Pawan Goyal, ED & CBO, Naukri, said, 'What stood out in June was the sharp pickup in hiring across core service sectors like Hospitality and BPO/ITES. It was also encouraging to see IT hiring turn positive after a muted spell, especially with strong demand emerging from tier-II cities.'
Frequently Asked Questions
Which tier-2 cities are leading the growth in IT hiring?
Coimbatore, Nagpur, and Nasik are leading the growth in IT hiring, with a 53% y-o-y increase.
What sectors are driving the growth in fresher hiring?
Non-IT sectors like hospitality (40%), oil & gas (29%), real estate (25%), and healthcare are driving the growth in fresher hiring.
What is the overall growth in IT hiring in tier-2 cities?
The IT industry in tier-2 cities has seen a 53% y-o-y growth, far ahead of the national average of 30%.
What is the growth in AI/ML roles across industries?
AI/ML roles across industries have seen a robust growth of 42% y-o-y.
What is the growth in BPO/ITES hiring in June 2025?
BPO/ITES hiring saw an overall growth of 19% in June 2025, with a 23% rise in fresher hiring.
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