India's Job Market Sees Shift: Tier-2 Cities Challenge Metros, Report Indicates Reverse Migration

Tier-2 cities like Jaipur, Indore, and Kochi are now giving tough competition to metro cities in recruitment. According to a CII-Taggd report, 'reverse migration' has begun in the country, driven by 55% skilled graduates and AI talent. Read the full report.

India, home to the world's largest youth population, stands at a historic juncture. Two positive indicators emerge from India's employment market trends. Our nation, with 65% of its population under 35 years of age, has achieved a significant milestone in youth skills. India's share of globally employable graduates has now reached 55%.

Notably, the participation of women in this segment has also grown rapidly. The second indicator comes from the rise of Tier-2 and Tier-3 cities. While metropolitan cities like Bengaluru and Mumbai continue to be the first choice for careers in India, Tier-2 cities such as Jaipur, Indore, Ahmedabad, and Kochi are now giving tough competition to metro cities in the recruitment race.

According to the report, this is not just a shift, but the beginning of 'reverse migration'. This has been revealed by the recent India Decoding Jobs report by CII and Tagged. The report states that while hiring in metros is stable, an increase in recruitment is being observed in smaller cities. Their share is growing.

India's Talent is the 'Game Changer': Technology or Numbers Are Not Enough

A significant part of the report warns that technology alone will not secure the future. 'Talent' will make the real difference. According to the report, India's rise is not solely due to its large workforce, but because of the strategic capability and adaptability that the talent here brings to every sector. We are witnessing a transformation where India is no longer just a support base for global operations; it has now become a hub for innovation, leadership, and high-value addition. With the rapid expansion of Global Capability Centres (GCCs), India's workforce is now playing a decisive role in how companies worldwide formulate their strategies, develop solutions, and compete globally.

Half of the World's GCCs in India, 55% Growth in AI Talent

Half of the world's total 3,400 Global Capability Centres are located in India alone, and an additional 120-150 new centres are expected to join each year. On the other hand, India is witnessing a massive annual growth of 55% in Artificial Intelligence talent, with the numbers now estimated at approximately 2.35 million.

Increasing Participation of Women Power

According to the report, women's participation in the workforce in India has doubled compared to 2017. The current participation of women in the workforce is 23%, and their share in recruitment is estimated to be 30% in 2026-27.

Shortage of Pilots

Along with progress, the report also points to a 'skill gap'. According to the report, there is a shortage of 27% qualified staff at new airports in Tier-2/3 cities in the aviation sector. Not only this, India needs 2,000 pilots annually, but the supply is only 100-1200.

'Demographic Dividend' is Maturing

The report assures that India's 'demographic dividend' is now maturing. The opening of full-fledged offices in cities like Jaipur, Indore, Ahmedabad, and Kochi indicates that companies are now reaching where the 'talent' actually resides in their search. By 2026, Tier-2 cities will not just be an option, but the true engines of growth.