The Talent Is Not Only in the Metros: What One Hiring Platform's Data Suggest

The Apna MSME Hiring Pulse 2026

The Apna MSME Hiring Pulse 2026 was published as an ANI report in The Tribune on 25 June 2026 and covers FY26, with FY25 comparisons in places. It is produced by the jobs platform Apna and gave no sample size or method. Its numbers describe Apna's users and employers, not all MSMEs.

The geography figures

• Tier-1 city clusters accounted for 68% of MSME job demand in FY26. • Tier-2 cities provided 30% of all applicants. • Tier-3 markets had nearly 20% of active users but only 5% of job applications. • Surat, Rajkot, Nagpur and Raipur were named as emerging hiring hubs alongside Ahmedabad, Pune, Chennai and Delhi. • Demand for jobs requiring AI-related skills rose 164% in FY26. The report read this as MSMEs investing in digital capabilities as they grow, and said workforce participation is spreading beyond metros even though tier-1 clusters still dominate demand. It described tier-3 markets as showing strong interest that has not yet converted into formal employment.

“If the applicants live in the smaller town, the job should be able to find them.”

A mismatch worth noticing: our analysis

Tier-1 clusters had 68% of job demand, while tier-2 cities provided 30% of applicants. That suggests many applicants live outside the places where most jobs are posted. A small firm in a tier-2 city may be able to find skilled people who would otherwise have to relocate, and may be able to offer something the metro cannot: a shorter commute, a lower cost of living and a more personal workplace. The tier-3 figure, where active users far exceed applications, suggests many people there are looking but not applying, possibly because they see few suitable jobs or lack confidence in the process. A local employer who advertises clearly and accepts applications by phone or message may reach people the platforms miss. We caution that a platform's users are not a random sample. People who use a jobs app skew younger and more digital, and the categories of work it handles are mainly entry-level and customer-facing. Do not generalise to senior or technical roles.

A guide to hiring outside the big cities: our suggestions

1. Advertise where your applicants are. Use local language, mobile-friendly channels, notice boards at training institutes and word of mouth through current staff. 2. Be clear about pay, hours and location. Applicants in smaller towns often drop out when the details are vague. 3. Offer training. Many applicants have general skills; teaching your specific process is part of the job. Describe the training in the advertisement. 4. Make the process short. A quick phone screen, a practical test and a decision within a week keeps candidates from taking other offers. 5. Consider remote or hybrid roles. For sales support, bookkeeping, design and customer service, location may matter less than reliability. A trial project can test fit. 6. Plan for retention. Show a path for growth: a role that leads to responsibility, a modest raise at set intervals, and recognition.

On AI skills

A 164% rise in demand for AI-related skills sounds dramatic, but we lack the base number, so we cannot say how many roles are involved. For most small firms the practical need is not an AI specialist but staff who can use tools to draft messages, summarise documents or keep records. Look for curiosity and the ability to learn. See our Productivity pieces for examples.

Risks of over-reading platform data

Hiring platforms report what they see. Firms that recruit through families, local contacts or labour contractors are invisible. A rise in demand on a platform may reflect more employers joining it rather than more hiring overall.

For clusters and associations

Industry associations in cities such as those named can help members by running shared training and job fairs. A shared pool of trained workers reduces the cost of hiring for each member.

A simple test of a new location

If you are weighing whether to hire people in a smaller town, run a pilot before committing. Take on two or three people for three months on clear tasks, track output, quality and attendance, and ask them what would make the arrangement work better. Compare the result with the same tasks done in your main location. Only if the pilot meets your standards should you expand. This keeps the decision grounded in your own evidence rather than in a platform's aggregate numbers.

Housing, transport and family

Applicants in smaller towns often value a job near home. Offering fixed shifts, advance notice of schedule changes and help with transport can matter as much as pay. Where relocation is needed, support with temporary housing and an honest description of living costs reduce early drop-outs. Editorial analysis based on The Tribune/ANI (25 Jun 2026) reporting Apna's report. Hiring guidance is ours.