Gender gaps persist

By Ashwini Deshpande

India’s female labour force participation rate (FLFPR) has been steadily increasing from 23.3% in 2017-18 to 41.7 % in 2023-24 for women aged 15 years and older. Reversing the decline in FLFPR between 2004-05 and 2017-18, which was primarily seen in rural areas, this increase has been driven by an increase in labour force participation rates of rural women, from 24.6 to 47.6%, whereas FLFPR increased for urban women from 20.4 to 28% over the period. Continuing past trends, women living in rural areas continue to be more likely in the labour force as compared to their urban counterparts.

While this increase is welcome, we should note that as of now, only four among every 10 women of working age were part of India’s labour force in 2023-24, i.e. they were either looking for work (but unemployed) or were engaged in some form of economic work. India’s FLFPR continues to be below countries at comparable income levels.

Despite the increase in FLFPR, gender gaps continue to persist, with men’s LFPR being nearly double that of women. Additionally, while women are less likely to be in the labour force compared to men, the unemployment rate for women in the labour force is higher than that for men. Urban women in particular face high levels of unemployment, and this has remained high despite an overall dip in unemployment levels in recent years.

In terms of types of work, the increase in FLFPR has primarily been driven by greater self-employment among rural women. In 2023-24, 73.5% of rural and 42.3% of urban female workers were self-employed. For women, being self-employed predominantly means working either as an own-account worker or as an unpaid helper (and these shares have only been increasing in the past few years), and not so much as an employer.

Women’s work on family enterprises (farms, dairy, poultry, livestock, kirana shops, etc.) has typically been undercounted. This work is unpaid and unrecognised. In other words, women contribute to the earnings of the family through their labour such as by performing economic work similar to the men in the households, but while the men are counted as being part of the workforce, women are often not.

The Periodic Labour Force Survey, which was started in 2017-18, has improved the measurement of women’s unpaid work on family enterprises. Thus, a part of the initial increase in FLFPR (after the last Employment-Unemployment Survey in 2011-12) is due to improved data measurement practices.

Despite the rise in FLFPR, the quality of employment remains a matter of concern, as we see a decline in earnings for rural self-employed women despite the rising labour force participation. Women, regardless of the form of employment, earn much less than their male counterparts, and rural women earn the least on average, with self-employed women having particularly lower earnings. Thus, the gender gap in earnings has not narrowed — in fact, it has widened for those who are self-employed.

This picture can change through concerted policies aimed at significantly improving women’s access to formal employment in India through several targeted strategies.

Creating more non-farm job opportunities in rural areas is crucial. Paid work has to be created closer to homes in rural areas in the absence of reliable transport networks. This can be achieved by promoting small and medium enterprises, enhancing vocational training programmes, and supporting entrepreneurship among women.

Addressing infrastructure barriers such as transportation and childcare facilities is essential. Reliable and safe transportation options can help women commute to work, while accessible childcare services can alleviate the burden of household responsibilities, enabling them to pursue formal employment.

Establishing mechanisms to monitor women’s labour force participation and the effectiveness of policies can help identify gaps and areas for improvement. Regular evaluations can ensure that policies are responsive to the changing needs of women in the workforce.

There are a number of initiatives to bring women into meaningful self-employment that enhances their economic independence. Providing targeted training programmes that equip women with skills relevant to self-employment, such as entrepreneurship, financial literacy, and specific vocational skills, can help them establish and manage their own businesses more effectively.

Establishing microfinance initiatives and providing access to low-interest loans can empower women to start or expand their self-employed ventures. Financial literacy programmes can also help them manage their finances better.

Facilitating access to markets for women entrepreneurs through platforms that connect them with buyers can improve their sales opportunities. This could include online marketplaces, local fairs, and cooperatives that promote women’s products. In addition to transportation, other elements of infrastructure, such as access to reliable utilities (electricity, internet, etc.) can significantly enhance the ability of women to operate their businesses efficiently.

While the trend of rising FLFPR indicates some progress on a key dimension, we need to examine several other dimensions of women’s participation in paid work to gauge women’s advance towards economic independence and empowerment. Just as important as participation is the quality of work, as many women engage in unpaid or low-earning self-employment rather than formal salaried positions. The overarching challenge remains the persistently low job opportunities, accessing which remains a challenge due to a particular societal norm that places the responsibility for domestic chores (cooking, cleaning, washing, child and elderly care) almost exclusively on women. Finally, women’s access to paid work can only improve in a scenario when the economy is creating jobs in adequate numbers for the working age population as a whole.

The writer is professor of economics, Ashoka University.

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