The Economic Advisory Council to the Prime Minister (EAC-PM) reports that female labor force participation in rural India has risen significantly, from 24.6% to 41.5% between 2017–18 and 2022–23.
| Economic Advisory Council to the Prime Minister (EAC-PM) is an independent body constituted to give advice on economic and related issues to the Government of India, specifically to the Prime Minister. |
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Key Insights from EAC-PM Working Paper on Female Labour Force Participation
- Data Source and Analysis: The analysis is based on the Periodic Labour Force Survey (PLFS) from 2017–18 to 2022–23, encompassing employment and demographic data of over 2.5 million individuals.
- Significant Growth in Female LFPR (2017–18 to 2022–23): Rural female labour force participation rate (LFPR) increased from 24.6% to 41.5%.
- Urban female LFPR saw a modest rise from 20.4% to 25.4%, with notable interstate variations.
- State-Level Highlights
- Rural States:
- Jharkhand recorded 233% growth; Bihar saw a 6x increase.
- Northeastern states like Nagaland observed a sharp rise from 15.7% to 71.1%.
- Urban Areas:
- Gujarat exhibited significant growth from 16.2% to 26.4%.
- Tamil Nadu saw marginal changes, increasing from 27.6% to 28.8%.
- Rural States:
- Role of Marital Status in LFPR
- Married women in rural areas showed higher participation growth compared to unmarried women, particularly in states like Rajasthan and Jharkhand.
- In urban areas, marriage was linked to reduced female LFPR, with moderate increases noted in northeastern states.
- LFPR Growth in Western and Southern States
- Rural Areas: The growth in labour force participation is primarily seen among rural women in western and southern states.
- Urban Areas: Urban regions in these states have experienced only modest increases in female LFPR.
- Andhra Pradesh: Notably, Andhra Pradesh has seen a significant decline in LFPR among urban women with children.
- Female Labour Force Participation (LFPR) Trends: Female LFPR follows a bell-shaped curve, peaking between 30–40 years and declining sharply thereafter.
- Male Labour Force Participation (LFPR) Trends: Male LFPR remains consistently high (around 100%) between ages 30–50, gradually decreasing as age progresses.
About Female Labour Force Participation In India
- Female labour force participation refers to the percentage of women engaged in the formal or informal workforce, either employed or actively seeking employment.
- It serves as an indicator of women’s economic empowerment and social equality.
- Data Survey: The National Household survey, Periodic Labour Force Survey, conducted by National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI), reveals the female employment status in India.
- Global Labour Participation Rate For Women: The global labor force participation rate for women is just over 50% compared to 80% for men.
- India’s Participation Rate: Though female participation rate is still not at par with global average, however, it is improving over the years.
- As per the Periodic Labour Force Survey (PLFS) data, during 2022-23, the women participation in the labour force has notably increased to 37.0%.
Factors Responsible for Low Female Participation in the Labour Force
- Unpaid Domestic Duties/Unpaid Care Work: There is a disproportionate burden of unpaid domestic work and caregiving responsibilities, including childcare and home-making on Women.
- This results in ‘time poverty,’ which hinders women from joining the workforce. Example:
- According to the PLFS 2021-22, around 44.5% of women were outside the labour force due to child care and personal commitments at home
- According to the Time Use Survey of 2019 data, women in the working age group spend approximately seven hours daily on unpaid household work alone.
- This results in ‘time poverty,’ which hinders women from joining the workforce. Example:
- Social and Cultural Norms: Social expectations often assign women the role of caregivers and homemakers, leading to a lack of participation in economic activities.
- Men are generally expected to be the primary earners, reinforcing the idea that women should focus on household duties instead of contributing to the workforce.
- Marriage: Marriage, particularly early marriage, often reduces the female LFPR, as women are expected to take on household and child-rearing responsibilities.
- According to the World Bank Report, it is estimated that in India, after marriage, women’s employment rates decrease by 12 percentage points, which is about one-third of their employment rate before marriage, even if they don’t have children.
- Rising Household Income: As household income rises, the financial necessity for women to work diminishes, which can discourage them from seeking employment.
- Salary/Wage Disparity: Gender-based wage gaps and the undervaluation of women’s work discourage female participation in the labour force.
- According to a report by DBS Bank India, in collaboration with CRISIL, 23% of salaried women in India perceive a gender pay gap.
- Educational Barriers: Educational attainment plays a crucial role in influencing female participation in the labour force.
- Many women are unable to access or complete quality education, which limits their employment opportunities.
- Example: According to the 2011 census, only 63 percent of women in the total population are literate, significantly lower than the male literacy rate of 80 percent.
- Training and Qualification Gaps: Lack of required training, qualifications, or age restrictions can prevent women from accessing job opportunities, contributing to lower participation rates.
- Continued Study Preference: Around 33.6% prefer to continue their studies instead of entering the workforce, which keeps them outside the labour force.
- Limited Avenues In Rural Areas: There are limited opportunities in rural India because of which women don’t find jobs matching their preference.
- Low skill levels and non-farm jobs have also been found to be limited, leading to the withdrawal of women from the labour force.
- Crime as a Hindrance: Crime against women is one of the major hindrances to their productive contribution to the economy.
- The issues are majorly concerned with the commute to work and the resulting cost of traveling that deters women from joining the labour force.
- Example: A report by National Crime Records Bureau (NCRB) revealed that crimes against women have been on the rise, with 4,45,256 cases reported in 2022, which means 51 cases every hour
- The issues are majorly concerned with the commute to work and the resulting cost of traveling that deters women from joining the labour force.
Significance of Increasing Female Labour Force Participation in India
- Economic Growth: A higher Labour Force Participation Rate (LFPR) means more women are contributing to the workforce, which can lead to increased productivity and overall economic growth.
- Women bring diverse skills and perspectives, which fosters innovation and efficiency in workplaces.
- For instance, a McKinsey Global Institute report estimates that by offering equal opportunities to women, India could potentially add US$ 770 billion to its GDP by 2025.
- Maximizing Demographic Dividend: India, with its young population, can benefit from its demographic dividend if women are equally integrated into the workforce.
- Encouraging women to participate in productive activities ensures that a larger segment of the population contributes to the economy.
- Economic Empowerment of Women: Employment offers women financial independence, reducing their dependency on male family members.
- This enables them to make decisions in their personal, family, and social lives, leading to overall improvements in well-being.
- Social Transformation: As women join the labor force, traditional gender norms and societal perceptions gradually shift, fostering greater gender equality.
- Attainment of SDG Goals: Improving female LFPR directly contributes to achieving key Sustainable Development Goals (SDGs):
- SDG 5: Gender equality.
- SDG 8: Decent work and economic growth.
- SDG 10: Reduced inequalities.
| Good Practices from Private and Public Sector for increasing female labour participation in India:The Maternity Benefit (Amendment) Act, 2017: Extended paid maternity leave from 12 to 26 weeks, ensuring women have adequate time for childcare.Pradhan Mantri Matru Vandana Yojana: Provides cash incentives to pregnant women for proper nutrition and health.Free Laptop Scheme of Tamil Nadu: The Government of Tamil Nadu is implementing the scheme of distribution of laptop computers to the students studying in Government and Government-aided schools and colleges in the state to facilitate them in acquiring better skills and to incentivise them to continue their education. Re Entry Programmes: Many Companies offer a re entry programme for women to address the issue of talent shortage.Example: Infosys promotes mentorship opportunities for women returning from career breaks.Dedicated Offices for Gender Sensitivity: Many Multinational Corporations have set up dedicated offices where women employees can avail counselling facilities and nursing stations that would be available round the clock. |
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Government Initiatives To Improve the Female Labour Force Participation In India
- New Initiatives in Budget 2024-25: The Prime Minister’s Package announced in the Budget 2024-25 includes five key schemes aimed at empowering youth, including 4.1 crore women, over the next five years with a central outlay of ₹2 lakh crore. The initiatives include:
- Focus on employment, skilling, and opportunities.
- Setting up working women hostels in collaboration with the industry.
- Establishing creches to support women’s participation in the workforce.
- Additional policy interventions to foster a conducive environment for women in the workforce.
- ‘Palna’ scheme: The Ministry of Women and Child Development runs the ‘Palna’ scheme, or the National Programme on Anganwadi-cum-Crèche, which provides day-care facilities for children of working parents.
- The scheme aims to increase the participation of women in the workforce by providing a safe and secure environment for children’s health, nutrition, and cognitive development.
- A total of 1,000 Anganwadi creches have been made operational till now as part of this scheme
- Pradhan Mantri Mudra Yojana (PMMY): PMMY provides financial support to micro and small enterprises, particularly focusing on women entrepreneurs.
- Under this scheme, loans up to ₹10 lakh are provided for income-generating activities in the non-corporate, non-farm small/micro enterprise sector.
- ‘Women in Science and Engineering-KIRAN (WISE-KIRAN)’: The WISE-KIRAN scheme is a holistic approach to address various challenges faced by women in their scientific journey through different kinds of programmes.
- SERB-POWER (Promoting Opportunities for Women in Exploratory Research): The initiative promotes women in exploratory research by funding women scientists and researchers to pursue pioneering projects
- Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY): DDU-GKY provides skill development training to youth from rural areas, including women, to enhance their employability.
- It focuses on poverty alleviation by offering training in market-driven sectors, aiming to empower rural women with skills and economic opportunities.
- Namo Drone Didi: It is a central sector scheme aiming to empower women-led Self-Help Groups (SHGs) by equipping them with drone technology to provide agricultural services
- Skill India Mission: In order to enhance the employability of female workers, the Government is providing training to them through a network of Women Industrial Training Institutes, National Vocational Training Institutes and Regional Vocational Training Institutes.
- The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013: It was enacted to ensure safe working spaces for women, provide protection against sexual harassment of women at workplace and for the prevention and redressal of complaints of sexual harassment.
- National Education Policy (NEP), 2020: The policy prioritises gender equity and envisions ensuring equitable access to quality education to all students, with a special emphasis on Socially and Economically Disadvantaged Groups (SEDGs).
Way Forward
- Challenging Social and Cultural Norms: There is a need to destigmatize unpaid care work, which will help break down gender stereotypes and redefine caregiving roles.
- Public campaigns, educational programs, and media can promote the active involvement of men in caregiving, creating a more balanced division of labor.
- This shift will allow women to participate more fully in the formal workforce, improving their labor force participation.
- Flexible Working Arrangements: Flexible working arrangements, such as remote work and flexible hours, allow women to balance professional and personal responsibilities, making it easier for them to join and remain in the workforce.
- Promoting Vocational Training: Enhancing women with skills increases their employability and equips them to contribute to the economy.
- Example: The Implementation of Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA) can enhance digital literacy in rural areas.
- Formalisation of Jobs: Formalization of jobs provides women with job security, equal pay, and legal protections, making employment more attractive and can help boost female labour force participation.
Conclusion
While female labour force participation in India is steadily improving, targeted policy interventions are essential to ensure gender equality, economic empowerment, and inclusive growth, all crucial in realising the vision of a Viksit Bharat by 2047.
