Core industries dominate in recruiting efforts, with tier-2 city hiring growing consistently: discovered

On a year-over-year basis, tier-2 cities have done better than metro areas; however, in the recent few months, hiring in metro areas has significantly increased.

The average minimum pay in a metro city varies from Rs 4.83 lakh per year (LPA) to Rs 6.63 LPA, according to salary trends for tier-2 and metro areas.

According to data shared by talent platform foundit, hiring at tier-2 cities increased by 11% in May 2024 compared to the same period the previous year, demonstrating consistent growth trends when compared to metropolitan areas. Cities like Kochi, Coimbatore, and Jaipur emerged as key hiring locations.

When it comes to metro areas, Delhi/NCR and Kolkata stand out as the top recruiting locations year over year (YoY). Although tier-2 cities have done better year over year than metro areas, metro areas have seen a notable increase in hiring in recent months.

The foundit reports that industries where recruiters are looking for diversified personnel with specialized skill sets, including as production and manufacturing (29 percent), IT-Software & Services (17 percent), real estate (8 percent), and education (8 percent), are witnessing better growth rates in tier-2 cities.

However, owing to the increase in demand for IT service providers and digitalization, metro areas have shown a preference for recruiting from the IT-Software & Services, Advertising, MR, and PR sectors. This suggests a recovery from layoffs and a reduction in bench strength.

"Noteworthy is the tier-2 cities' blossoming hiring performance, which surpasses that of their metropolitan equivalents. These cities have seen steady growth, especially in the Production and Manufacturing sector, where hiring is booming right now. A growing skill pool willing to contribute to India's industrial environment, supportive government policies, and the development of infrastructure are some of the reasons behind this. According to Sekhar Garisa, CEO of foundit, "it's clear that tier-2 cities are becoming more and more appealing hubs for businesses looking for expansion opportunities and tapping into diverse talent pools for sustainable growth."

The average lowest income in a metro city varies from Rs 4.83 lakh per year (LPA) to Rs 6.63 LPA, while the average maximum compensation in a metro city ranges from Rs 8.09 LPA to Rs 15.98 LPA. These are the wage trends for metros and tier-2 cities. In tier-2 cities, the average pay varies from Rs 4.01 LPA to Rs 5.43 LPA for the least and from Rs 7.12 LPA to Rs 11.01 LPA for the highest.

hiring by industry 

Generally, the employment growth in the Production and Manufacturing sector was impressive, accounting for 47% of the YoY increase. This rise was primarily driven by the expansion of big modern manufacturing in India, which was made possible by government support for PLI, infrastructure development, and import/export policy interventions.

Not only is there more demand in this industry, but allied businesses like electrical components and home appliances have also seen a rise in employment of 35 percent.

The telecom/ISP industry has grown significantly in the last month and year, with a 9% year-over-year increase. This increase is mostly ascribed to higher yearly investments in telecom services and the loosening of FDI regulations. Furthermore, the growing need for end-user applications and developments in industries like IoT, cloud computing, data centers, and the impending 5G technologies are propelling the expansion of India's telecom environment. The nation is also seeing a notable increase in internet use, which is accelerating the sector's expansion.

The recruiting market in the healthcare sector has also recovered, with YoY growth of 29% and monthly growth of 4%. A annual decline in hiring was seen in businesses such as Agro-based industries (-16 percent), Shipping/Marine (-30 percent), FMCG (-9 percent), and Import/Export (-16 percent). The real estate (20%), retail (18%), oil/gas/petroleum (22%) and information technology (20%) sectors all saw modest increases in hiring.