Women in the Informal Workforce

Social Issues

Women in the Informal Workforce

Context

  • The National Statistical Office (NSO) has released the first-ever district-level estimates from the Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2025.
  • The survey covers unincorporated non-agricultural enterprises in manufacturing, trade and services.
  • The data highlight a key paradox: higher female participation does not necessarily translate into better earnings, security or economic agency.

What Does the Data Show?

  • Women constitute about 29% of workers in India’s unincorporated non-agricultural sector.
  • In 237 districts, women form at least one-third of the workforce; in only 25 districts do they constitute more than half.
  • Nirmal, Telangana, records the highest female share at about 78%.
  • Districts with high female participation are concentrated particularly in southern and north-eastern India.
  • At the lower end, Rudraprayag, Uttarakhand, records only about 6.7% female participation.

What Does the Regional Pattern Reveal?

  • Local economic structure: Female participation varies with the type of industries, services and enterprises present in a district.
  • Social context: Local norms, mobility and access to work influence women’s labour-market participation.
  • Policy targeting: Wide district-level differences show why national averages alone are insufficient for designing employment policies.

Participation Is Not the Same as Empowerment

High workforce participation can coexist with poor-quality employment.

  • Women are often concentrated in low-productivity and low-paying activities.
  • Average annual emolument per hired worker in the sector is around ₹1.3 lakh.
  • Even districts with high female participation do not necessarily record high earnings.

Therefore:

More women working ≠ Better work

Meaningful economic empowerment requires:

Participation + Adequate earnings + Social security + Skill mobility + Economic agency

Why Does Women’s Informal Work Matter?

  • Household resilience: Women’s earnings supplement family income and reduce economic vulnerability.
  • Local economy: Women contribute significantly to small manufacturing, trade and service activities.
  • Entrepreneurship: Informal enterprises provide an important entry point for women into self-employment and business ownership.
  • Inclusive growth: Greater female economic participation expands the productive workforce and supports more broad-based growth.

The informal sector is therefore not a marginal activity; it is an important part of India’s employment and production structure.

Key Concerns

  • Low remuneration: Employment is often concentrated in low-value activities.
  • Social-security deficit: Many workers lack pensions, insurance, paid leave and employment protection.
  • Low-productivity trap: Limited skills and technology restrict movement into better-paying work.
  • Financial exclusion: Women-owned micro-enterprises often face difficulty accessing formal credit and markets.

Existing Policy Support

  • e-Shram: Creates a database of unorganised workers to improve welfare and social-security delivery.
  • PM Vishwakarma: Provides artisans with skilling, tools, credit and market support.
  • Udyam Assist Platform: Helps informal micro-enterprises enter the formal MSME ecosystem.
  • Skill India Digital Hub: Expands access to skilling and employment-linked training.

Together, these schemes can support the transition:

Informality → Recognition → Capability building → Formal economic opportunity

Way Forward

  • District-specific strategy: Use ASUSE data to identify local barriers and design targeted interventions.
  • Move women up the value chain: Link skilling with technology adoption, market access and higher-productivity occupations.
  • Portable social protection: Ensure informal workers can access welfare benefits regardless of employer or location.
  • Enterprise graduation: Help women-owned micro-enterprises move from survival activity towards formal, creditworthy and scalable businesses.

FAQs

Q1. Which survey provides the district-level estimates?
The Annual Survey of Unincorporated Sector Enterprises (ASUSE) 2025.

Q2. Which district records the highest female share?
Nirmal, Telangana, at about 78%.

Q3. What is the all-India share of women in this workforce?
About 29%.

Q4. Why does high female participation not necessarily indicate empowerment?
Because employment may still involve low wages, poor social security and limited upward mobility.

Q5. Why are district-level estimates important?
They reveal local variations hidden by national averages and support place-specific policymaking.