2. Women's Participation in the Labour Force

• In the recently released India Employment Report for 2024 by the Institute for Human Development and the International Labour Organization, a significant focus is placed on the participation of women in the labour force.
• Despite improvements in key metrics, such as the Labour Force Participation Rate (LFPR), the female LFPR remains considerably lower compared to their male counterparts.
• In 2023, while the male LFPR stood at 78.5, the female LFPR was recorded at a mere 37. This gap is stark when compared to the global average female LFPR of 49, according to World Bank data.
• The report notes a consistent decline in female LFPR since 2000, touching a low of 24.5 in 2019, before showing slight increments, particularly in rural areas. However, the authors emphasize that despite these marginal improvements, employment conditions for women continue to be challenging.
• The light on the trend points out that the rise in female labour force participation has predominantly occurred in rural areas and has been primarily driven by self-employment, often characterized by unpaid work. This uptick in participation can be attributed to economic distress preceding the COVID-19 pandemic and the pandemic itself.
• While various hypotheses exist regarding the causes of this trend, such as improvements in measuring women's work and increased non-farm employment for men leading to women substituting in agriculture definitive evidence on the exact cause(s) remains elusive.

3. Women's Employment Trends

• The India Employment Report underscores that women play a significant role in the surge of self-employment and unpaid family work.
• According to the report, nearly two-thirds of the newly generated employment post-2019 consists of self-employed individuals, with women comprising a significant portion of unpaid family workers within this category.
• Concurrently, the proportion of regular employment, which had been on a steady incline since 2000, started to decline after 2018.
• Additionally, the global rate of youth not engaged in employment, education, or training has consistently been highest in South Asia, averaging 29.2% between 2010 and 2019, according to the International Labour Organization (ILO).
• India mirrors this trend, with a notable portion of its youth falling into this category, particularly among young women, surpassing the rates for young men.

4. Factors Contributing to Low Women's Participation in the Labor Force

• Various economists and women's rights experts highlight a multitude of barriers that hinder women's participation in the workforce. These obstacles range from a dearth of job opportunities and the burden of caregiving responsibilities, including household chores and cooking, to inadequate wages, patriarchal attitudes, and safety concerns.
• The Disastrous Economic Fallout of the COVID-19 Pandemic in India," discusses the significant decline in women's labour participation from 2004 to 2018.
• A portion of this decline to increased involvement in education, particularly among the 15 to 19 age group.
• However, as participation rates dropped across all age groups, a broader phenomenon globally of women being pushed out of employment due to a scarcity of paid work.
• The decline in women's LFPR can be attributed to both supply and demand-side factors. On the demand side, India's growth trajectory has not been sufficiently job-intensive.
• Coupled with societal norms that confine women to caregiving roles and limit their mobility, this restricts their ability to pursue available opportunities.
• Moreover, concerns regarding public safety and transportation constraints further constrain women to seek employment within proximity to their homes, limiting their options.
• The various factors influence the supply and demand for female labour. These factors include women's ability to balance paid work and family obligations, decisions related to education and childcare, technological advancements, legal frameworks, and societal norms.
• The women's choices have historically been constrained by marital status and responsibilities for household and family, a trend observed not only in the U.S. but also in many other countries, including India.