Labour codes spur hiring in Tier III, IV cities, says report

Mumbai: As businesses expand beyond metros, labour codes are accelerating recruitment in smaller cities, pushing job postings in tier III and IV markets by up to 56 per cent, according to a report. India’s Labour Codes are triggering a dramatic redistribution of job opportunities across the country, with smaller cities emerging as the unexpected winners of regulatory reform, according to a report by blue and grey-collar recruitment platform WorkIndia.

It revealed that despite early fears about hiring freezes, the data found the total job postings grew by 8.4 per cent after the codes took effect. Tier III and IV markets experienced a surge in hiring as Kolhapur witnessed 56.3 per cent growth in job postings, while Udaipur saw 55.3 per cent increase. Goa recorded a 23.6 per cent jump, Vijayawada 20.2 per cent, Kochi 17.7 per cent, Coimbatore 14.1 per cent, and Raipur 13.9 per cent, added the report. Collectively, the report revealed that these tier III and IV cities are growing at 12-15 per cent and above, signalling that Labour Codes are accelerating formal hiring in emerging and semi-urban regions.