Chapter 2 significantly ramps up the difficulty and introduces more complex political intrigue. You'll encounter more powerful human enemies, including Knights, Archers, and even early Magic users. It's crucial to have a diverse party with a good mix of physical attackers, healers, and potentially some magic users by this point.
Consider unlocking the Black Mage and White Mage jobs for offensive and defensive magic respectively. The Monk job also becomes available and offers powerful physical attacks and self-healing. Don't neglect your equipment; regularly check the shops in towns for upgrades.