As India moved into the ranks of the world’s four largest economies in 2025, its labour market underwent a quiet but consequential transformation. New data from a leading employment platform shows that hiring activity surged across cities and small towns alike, reflecting a more decentralised, technology-enabled workforce and signalling deeper shifts in how India’s urban and semi-urban economies are evolving.
During the year, more than nine crore job applications were recorded on the platform, marking a sharp year-on-year rise. Employers, meanwhile, listed around 14 lakh vacancies, driven largely by service-sector expansion and the increasing digitisation of small and medium-sized businesses. Industry observers say the numbers point to growing formalisation of employment, particularly outside India’s largest metropolitan centres. A striking feature of the hiring surge was the scale of participation by women and early-career professionals. Women accounted for over a third of total applications, with growth strongest in Tier-2 and Tier-3 cities. According to labour economists, this reflects a combination of improved digital access, rising service-sector opportunities and changing household attitudes towards paid work. Applications for mid-level and senior roles also increased, suggesting that women are not only entering the workforce in larger numbers but are also progressing into leadership positions. Fresh graduates formed another important pillar of demand. Entry-level applications crossed two crore, with smaller cities contributing a significant share. Employers showed particular appetite for roles in administration, customer support, finance operations and digital services jobs that are increasingly location-agnostic and compatible with hybrid or tech-enabled work models. An urban planner noted that such trends could ease pressure on megacities by creating viable employment pathways closer to home.
On the demand side, hiring momentum was led by smaller businesses, which accounted for the bulk of new job listings. Their expansion into non-metro markets underscores the role of local entrepreneurship in shaping future urban growth. Large enterprises also stepped up recruitment, especially in sectors such as healthcare services, financial services, logistics and retail, reinforcing the shift towards service-led city economies. Technology played a central role in this transition. Artificial intelligence tools were used extensively for interview preparation, screening and initial assessments, cutting recruitment timelines and reducing costs. Analysts argue that such efficiencies could help employers scale sustainably while widening access for candidates who may lack traditional networks. The data also points to changing aspirations among jobseekers, with strong interest in technology and knowledge-driven roles. This aligns with broader urban development goals centred on skills, productivity and inclusive growth.
Taken together, the trends suggest an Indian job market that is becoming more distributed, more digitally fluent and more inclusive. For cities and emerging urban centres, the challenge now lies in matching this employment momentum with investments in housing, transport and social infrastructure ensuring that economic growth translates into liveable, equitable and resilient urban futures.
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