Female Labor Force Participation in India

The Economic Advisory Council to the Prime Minister (EAC-PM) has released a working paper highlighting a significant increase in the Female Labor Force Participation Rate (LFPR) in India. This paper discusses the trends, factors, and challenges affecting female participation in the workforce.

Key Findings

1. Rural Female LFPR: Increased sharply from 24.6% in 2017-18 to 47.6% in 2023-24 (~69% growth).
2. Urban Female LFPR: Rose modestly from 20.4% to 25.4% (~25% growth).
3. Regional Variation: States such as Bihar, Punjab, and Haryana exhibit lower female LFPR compared to other regions.

Factors Influencing Female LFPR

The working paper highlights three key factors affecting female LFPR:

1. Age:

1. Female LFPR follows a bell-shaped curve:
   1. Rises between the ages of 20-30.
   2. Peaks during 30-40 years.
   3. Declines sharply thereafter.
2. In contrast, male LFPR remains high (~100%) between the ages of 30-50 and gradually declines afterward.

2. Marriage:

   1. Marriage significantly reduces female LFPR, especially in urban areas, where the decline is more pronounced compared to rural settings.
   2. This is largely due to household responsibilities, which are more prevalent in urban areas.

3. Parenthood:

   1. The presence of children under 14 significantly reduces female LFPR, particularly among women aged 20-35.
   2. This reduction is more pronounced in urban areas, suggesting that childcare responsibilities are a major factor in women's decisions to join the workforce.

Reasons for Low Participation of Women in the Workforce

Several factors contribute to the low participation of women in the workforce, including:

1. Safety Concerns:

   • Workplace sexual harassment cases have risen from 402 in 2018 to 422 in 2022, according to the National Crime Record Bureau.
   • This increase in harassment cases contributes to the reluctance of women to join or remain in the workforce.

2. The Double Burden:

   • Women's unpaid care work contributes 3.1% to India's GDP, while men's contributions are only 0.4%, as per the Economic Survey 2024.
   • The disproportionate burden of domestic and caregiving work limits women's ability to participate in paid labor.
3. Education: According to the Periodic Labor Force Survey (PLFS), 37.94% of women stay out of the workforce to continue their education, indicating that pursuing education is a priority for many women.
4. Digital Divide: The National Family Health Survey-5 (2019-2021) found that only 33% of women in India have used the internet, pointing to the challenges women face in accessing digital tools and opportunities in the workforce.
5. Social Protection:
   1. The eShram database (March 2022) reveals that women constitute 52.7% of the 287 million registered unorganized workers, surpassing men in this sector.
   2. The lack of social protection in informal sectors often leads to limited security and stability for women workers.
6. Increased Household Income: As household incomes increase, women are more likely to drop out of the labor force. This is because domestic, non-market work is perceived to have a higher status than market work, according to the International Labor Organization.

Refer Current Affairs Total (CAT) Magazine November 2024, Page 102-105 for Comprehensive Coverage of Female Labor Force Participation in India.

 

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