By Aswathy Rachel Varughese & Vipasha Ray Hajong
In India, despite notable strides towards narrowing gender disparities in education and healthcare, educated unemployment among women is a persistent challenge. According to the World Economic Forum’s Gender Gap Index (2023), India ranks 127th out of 146 countries, with its economic participation and opportunity lagging significantly behind other indicators. This issue is particularly acute in urban areas, contributing to a decline in the overall female Labour Force Participation Rate (LFPR) in the country. The duration and obstacles associated with career breaks play pivotal roles in constraining the LFPR of educated urban women, highlighting the need for substantial progress in reducing career breaks to achieve gender equality under the Sustainable Development Goals (SDGs).
Rampant career breaks among women
Female LFPR in India stood at 23 percent, according to the Periodic Labour Force Survey (PLFS), in contrast to the worldwide average exceeding 50 percent in 2023. According to World Bank data from 2021, approximately 31 percent of women in India drop out of the workforce, particularly within the formal sector, for various reasons. The report highlights that within the formal sector, only one in five Indian women are engaged in employment, while the majority are occupied with informal sector jobs and unpaid domestic responsibilities. Specifically, within STEM (Science, Technology, Engineering, and Mathematics) and financial services occupations in the formal sector, female employees are more likely to take career breaks. Consumer Pyramids Household Surveys (CPHS) data from 2022 indicates that the proportion of women opting for career breaks in these professions is higher for durations ranging from one to five years. This trend is more prevalent among urban women compared to their rural counterparts, primarily due to the lower representation of women in STEM and financial services roles in rural areas.
In many low and middle-income nations, individuals with higher educational qualifications often face the menace of unemployment, with women bearing a disproportionate brunt due to an array of factors. The International Labour Organization (ILO) underscores the prevalence of ‘Job Gaps’ particularly affecting women, who have the desire to work but encounter barriers such as the unavailability of immediate placements and challenges in swiftly joining the workforce compared to men. Evidence underscores that these gaps endure due to a combination of limited job prospects and barriers to accessing available opportunities, exacerbated by gender stereotypes, unequal caregiving responsibilities, and societal discouragement from actively seeking employment, among other factors. The income level of the household serves as an important determinant that keeps women out of the workforce. With the rise in income, no matter the education level of women, they are expected to look after the household matters and be away from the income-generating economic activities. Another important factor that hamstrings women’s participation is the migration or relocation to other states and countries post-marriage. With migration safety concerns among women intensify and they opt out from employment. Lesser ease of mobility post-marriage also drives career breaks in India. Low wages and poor transportation facilities are also prolonging re-entry to job markets. India lags behind in offering appropriate jobs to those females who are educated and qualified.
Disproportionate burden
Motherhood and unbalanced parental care responsibilities prolong the duration of the career break. In India, there is an alarming gap that persists in the time utilisation of men and women in the household or unpaid domestic household activities. According to data from the Time Use Survey (2019), women allocate significantly more time to unpaid domestic work compared to men. On average, women spend 299 minutes on unpaid domestic services and 134 minutes on caregiving for household members, whereas men spend only 97 and 76 minutes, respectively. This stark difference in time allocation is exacerbated by entrenched social norms, which divert women’s potential contributions away from market-specific activities. The disproportionate burden of unpaid household work and caregiving responsibilities is a significant factor contributing to prolonged career breaks among women and an increasing propensity for career interruptions. Moreover, the issue of measuring female contributions to the national output presents a challenge that undervalues women’s labor. A significant portion of their work is classified as non-market activities and does not generate income. Additionally, women often engage in income-saving activities through household chores, which go completely unaccounted for in official measurements.
According to the SDG dashboard, India faces significant challenges in attaining gender parity. The representation of women in managerial positions, including on the boards of directors in listed companies, stands at approximately 190, falling short of the target of 245. Additionally, the ratio of female to male average wage or salary among salaried employees is 0.74, compared to the achievable target of 1. Prolonged career breaks emerge as a primary factor contributing to India’s lagging performance in achieving SDG indicators related to career advancement and wage equality.
The longer the duration the lesser the chance of returning to employment as the attained skills are obsolete in the era of fast-changing technology. There exists a gap in policy measures driving prolonged career breaks and educated unemployment among women. The major factors hamstring women’s re-entry into the job market are the lack of upskilling and re-skilling. The landscape of jobs is changing and evolving in tandem with the global technological drive. Women’s re-entry is closely associated with digital and technological transformations.
Policy prescriptions: A call to action
Effective policy interventions are essential to encourage women’s re-entry into the workforce and mitigate the impact of career breaks. Government initiatives should focus on liberating women from traditional caregiving roles and fostering their participation in the labor force. Investments in an affordable and accessible care economy system, coupled with efforts to upgrade women’s skills, are imperative to address the evolving job landscape driven by technological advancements. Policies should be formulated in such a way as to minimize career breaks through seamless provisioning of support systems like effective childcare leave and sabbaticals. This will give leeway for working women to carry out the entrusted responsibilities for some time and resume their work. Besides, for those who are taking career breaks, re-entry should be ensured through relaxation in the female recruitment age, promotion criteria, etc. Flexibility in timing and promoting a remote working culture also facilitates a reduction in career breaks. In the absence of such measures, the duration of career breaks for women will continue to widen, perpetuating educated unemployment and hindering India’s progress towards gender equality in the workforce.
About authors: Dr Aswathy Rachel Varughese is Assistant Professor, Gulati Institute of Finance and Taxation, Thiruvananthapuram. Vipasha Ray Hajong, Research Scholar, Gulati Institute of Finance and Taxation, Thiruvananthapuram.
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