Festive season to add up to 2 Lakh jobs; Tier-2 cities surge as Q-Commerce drives gig role growth

Festive season to add up to 2 Lakh jobs; Tier-2 cities surge as Q-Commerce drives gig role growth

INDIA, 25th Sept 2025: India’s festive economy has traditionally been a major driver of consumer spending, and 2025 is marking a structural transformation in how seasonal demand is shaping employment models. The festival season, starting earlier this year, is expected to generate up to 2 lakh jobs across key sectors like retail, e-commerce, logistics, and consumer services.

Hiring during the festive period is up significantly compared to last year. Quick commerce and third-party logistics are leading the surge, supported by investments in supply chain and last-mile delivery. Of the projected new jobs, 70% are expected to be gig roles, while 30% are permanent, suggesting a blended workforce model.

This reflects a broader workforce transformation—not just a seasonal spike.

Several large Q-commerce and e-commerce players are projected to retain 26% of this expanded workforce beyond the festive window.

This marks a shift from prior years, when most gig roles were phased out post-season.

The gig workforce is now seen as a strategic asset in India’s evolving employment landscape.

Tier 2 and Tier 3 cities are becoming active growth hubs. Locations like Bhubaneswar, Kochi, Indore, Surat, and Nagpur are expected to see strong increases in hiring.

These cities are emerging as micro-fulfilment hubs for retail and e-commerce.

Last year, Tier 2 cities accounted for nearly half of all gig hiring, and that share is expected to grow in FY26.

Another defining shift is greater gender diversity in the festive workforce. The gig economy—especially in customer service, delivery, grooming, and food—is seeing a notable rise in female participation.

More women are joining gig roles due to flexible hours, digital onboarding, and hyperlocal opportunities.

Hiring is moving toward greater gender parity, especially in urban and semi-urban clusters.

Sachin Alug, CEO of NLB Services, notes:

“Over 35% of businesses are now rethinking festive hiring as part of their long-term talent strategy.”

Companies are:

• Investing in pre-festive skilling

• Revisiting diversity goals

• Using seasonal demand as a testbed for agile workforce models

“Real growth is shifting to Tier 2 and Tier 3 cities—where talent is available, costs are lower, and attrition is minimal.”

Looking Ahead: From Seasonal to Sustainable

As this momentum continues, the priority must be:

• Investing in tech-led skilling

• Extending workforce protections to gig roles

• Ensuring seasonal work leads to long-term inclusion

The celebration may be seasonal, but its impact on employment is now year-round.