Labour codes job growth is reshaping where companies hire in India, according to Times of India Labour codes trigger job surge in smaller cities, women hiring sees strong boost. A WorkIndia report tracked job postings after the rules took effect, showing faster expansion in Tier III and IV cities.
What changed in Labour codes job growth
WorkIndia reported an 8.4% rise in total job postings after the Labour Codes were enacted. Smaller cities posted the sharpest increases, showing that formal hiring is spreading beyond the biggest metros. Kolhapur recorded a 56.3% jump in job placements, while Udaipur saw 55.3% growth. Goa also reported a 23.6% rise, followed by Vijayawada at 20.2% and Kochi at 17.7%.
Coimbatore and Raipur added steady gains of 14.1% and 13.9%. The report noted that many Tier III and Tier IV cities are now growing at 12–15% or more, creating new employment centres for local workers.
Metro cities employment growth continues
Metro cities employment growth remained steady during the same period, even as smaller cities expanded at a faster pace. Ahmedabad reported a 19.2% rise in job postings, showing continued demand in large urban centres. Pune recorded a 13.2% increase, while Mumbai and Kolkata each grew by about 9%. The WorkIndia data suggests that firms are still hiring actively in major hubs because metros remain key locations for corporate and industrial jobs.
However, the faster growth in Tier III and Tier IV cities indicates that recruitment is spreading more widely across the country. This pattern shows a shift in employment distribution, where smaller markets are emerging as new centres of formal work while metros continue to hold their position as stable hiring bases.
Impact on workers and hiring patterns
The report also showed a shift back to office-based roles. Work-from-office postings increased by 8.7%. Work-from-home roles fell by 10.4%. Employers linked this change to easier compliance monitoring at on-site locations.
Women’s hiring rose more quickly than men’s. Advertised positions for women increased by 10%, compared with 6.3% for men. The report described this as the widest recent gap in hiring growth.
WorkIndia compared postings from October 1 to November 20, 2025, with those from November 21, 2025, to January 31, 2026. The findings show labour codes job growth spreading formal recruitment into more regions.
