India's Hiring Boom in 2025: Tier-2 Cities Lead the Way

India's job market ended 2025 strongly, with a 23% year-on-year increase in hiring, driven by employer confidence and Tier-2 city growth. The demand for AI-ready skills and strategic leadership is set to keep hiring robust into 2026, shifting toward skill and experience-focused recruitment.

India's job market concluded 2025 on a high, with hiring activity climbing 23% year-on-year, as per data from the foundit insights tracker by foundit, a prominent jobs and talent platform. This growth showcases robust employer confidence across major industries while highlighting the strategic rise of Tier-2 cities as talent hubs.

However, the latter half of the year saw a tempered growth of 4% over six months, indicating a shift toward more cautious, productivity-driven hiring. According to Anupama Bhimrajka, VP, Marketing at foundit, '2025 was a pivotal year marked by significant expansion and a disciplined hiring approach.' This period also witnessed Tier-2 cities becoming crucial centers for technology, BFSI, logistics, and retail sectors.

As 2026 unfolds, the demand for AI-ready skills and strategic leadership remains high, with recruitment continuing to prioritize mid-to-senior-level professionals. The country's hiring landscape is notably driven by digital transformation and enterprise-wide execution, with decentralized talent strategies enabling access to wider talent pools.

(With inputs from agencies.)