Rise of the New Workforce: The Blue-Collar Boom in Tier II and III Cities

A recent report highlights the strong growth of blue-collar jobs in India's tier II and III cities, now accounting for 70% of the workforce. Fast-growing cities like Coimbatore and Lucknow are driving this shift, fueled by developments in retail, BFSI, and manufacturing sectors, and a young workforce.

In a significant development for India's labour market, the latest Quess Pulse Report reveals that tier II and III cities are becoming the primary hubs for blue-collar employment. Accounting for nearly 70% of the country's workforce, these areas highlight a shift in job creation dynamics.

The report underscores that 40% of employment opportunities are in tier III towns, with tier II contributing an additional 29%, compared to the metros' 31%. Key sectors like retail, BFSI, and manufacturing are at the forefront of this change, creating numerous jobs and reshaping local economies in cities such as Coimbatore and Surat.

This transformation is driven largely by a youthful workforce, with over 64% being under 30, and short-term employment cycles are the norm. The decentralisation reflects broader economic and demographic trends, positioning these cities as vital players in India's growth trajectory.

(With inputs from agencies.)