Apna report says MSME hiring rose 25% in FY26 as AI skills and Tier-2 city talent drive India’s changing job market.
Highlights
- •MSME hiring on Apna platform grew 25% in FY26 and continues to remain strong in FY27.
- •Demand for AI-related skills surged 164%, reflecting growing digital adoption among small businesses.
- Tier-2 cities contributed 30% of job applicants, while Tier-3 regions show untapped hiring potential.
- Sales & Business Development accounted for 40% of total hiring demand in FY26.
- Telesales, Accounting & Taxation, Field Sales, and Customer Support remained the most sought-after roles.
Bengaluru: India’s micro, small and medium enterprises (MSMEs) are hiring at a faster pace while also changing the way they recruit talent, according to the latest Apna MSME Hiring Pulse 2026 report. The findings indicate that businesses are increasingly embracing artificial intelligence (AI), expanding recruitment beyond metro cities, and prioritising skills that support digital growth.
According to the report, MSME hiring on Apna’s platform increased by 25% during FY26 and has continued to maintain momentum in FY27. The growth has been driven by both new businesses joining the hiring ecosystem and existing employers increasing recruitment as they expand operations.
One of the biggest highlights of the report is the rapid rise in demand for AI-related skills. Job openings requiring AI capabilities jumped 164% in FY26, signalling that small businesses are increasingly adopting digital tools to improve productivity, automate routine tasks, and strengthen business operations. For job seekers, this means AI literacy is becoming an important employability skill even outside the technology sector.
The report also highlights a major shift in India’s workforce geography. While 68% of MSME job demand is still concentrated in Tier-1 cities, Tier-2 cities contributed 30% of all applicants, reflecting the growing availability of skilled talent beyond metropolitan areas. Meanwhile, Tier-3 cities accounted for nearly 20% of active users but only 5% of job applications, indicating significant untapped employment potential.
Emerging business hubs such as Surat, Rajkot, Nagpur and Raipur are witnessing stronger hiring activity alongside established employment centres like Ahmedabad, Pune, Chennai and Delhi.
Hiring priorities are also evolving. Sales & Business Development emerged as the largest hiring category, accounting for 40% of all skills sought by MSMEs in FY26, up from 36% a year earlier. Businesses also continued to recruit heavily for customer-facing and operational roles, with Telesales, Accounting & Taxation, Field Sales, and Customer Support among the most in-demand positions.
Commenting on the report, Kartik Narayan, CEO of Apna Jobs, said AI is helping level the playing field by enabling MSMEs to access advanced hiring capabilities that were previously available only to large enterprises. He added that the combination of AI-powered recruitment and the growing talent pool from Tier-2 and Tier-3 India will play a key role in shaping the next phase of India’s MSME growth story.
