Female Labor Force Participation in India

Posted 22 Jan 2025

Updated 24 Jan 2025

4 min read

Why in the news?

The Economic Advisory Council to the Prime Minister (EAC-PM) has released a working paper highlighting a dramatic increase in female Labor Force Participation Rate (LFPR).

Key Findings

Rural Female LFPR: It increased sharply from 24.6% in 2017-18 to 47.6% in 2023-24, (~69% growth)
Urban Female LFPR: It rose modestly from 20.4% to 25.4% (~25% growth)
Regional Variation: States like Bihar, Punjab, and Haryana have lower female LFPR.

Factors Influencing female LFPR

The working paper has highlighted 3 key factors

Age: Female LFPR follows a bell-shaped curve, rising between ages 20-30, peaking during 30-40 years, and declining sharply thereafter.
- In contrast, male LFPR remains high (~100%) from ages 30-50, gradually declining afterward.
Marriage: Marriage significantly reduces female LFPR, especially in urban areas, where the decline is more pronounced than in rural areas.
- This is mainly due to household responsibilities, which are more prevalent in urban settings.
Parenthood: The presence of children under 14 significantly reduces female LFPR, especially among women aged 20-35, and is more pronounced in urban areas.
- This suggests that childcare responsibilities play a major role in women's decision to join the workforce.

Reasons for low participation of women in workforce

Safety Concerns: For E.g., the number of workplace sexual harassment cases reported by the National Crime Record Bureau increased from 402 in 2018 to 422 in 2022.
The Double Burden: The Economic Survey 2024 shows women's unpaid care work contributes 3.1% to GDP, while men's contributions are only 0.4%.
Education: Recent Periodic Labor Force Survey (PLFS) data shows that 37.94% of women stay out of the workforce to continue their education.
Digital Divide: For E.g., the National Family Health Survey-5 (2019-2021) found that only 33% of women in India have used the internet.
Social Protection: For E.g., eShram database (March 2022) shows that women make up 52.7% of the 287 million registered unorganized workers, surpassing men in this sector.
Increased Household Income: As household income increases, women drop out of the labor force as domestic non-market work is perceived to have a higher status than market work (International Labor Organisation).

Steps taken by the government to enhance LFPR

Area	Scheme	Details
Survival and Education of Females	Beti Bachao Beti Padhao Scheme National Education Policy (NEP), 2020	Aims to improve female child survival, safety, and education, addressing the declining sex ratio and raising awareness. Prioritizes gender equity in education, with focus on equitable access to quality education, especially for disadvantaged groups.
Safe and Convenient Accommodation	Working Women Hostel	Provides safe accommodation with daycare facilities in urban, semi-urban, and rural areas for working women.
Supporting Women Affected by Violence	One Stop Centre (OSC) and Women Helpline	OSCs are intended to support women affected by violence, in private and public spaces, within the family, community and at the workplace.
Codification of Labor Laws	Labor Codes (Wages, Industrial Relations, Social Security, Occupational Safety, Health and Working Conditions)	Simplifies and rationalizes 29 labor laws to harmonize the needs of job seekers, workers, and employers. Aims to promote employment and ensure easier compliance.
Equal Opportunity and Work Environment	Protective Provisions for Women Workers The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013	Includes paid maternity leave (26 weeks), crèche facilities in larger establishments, and provisions for night shifts with safety measures. It protects women from sexual harassment in the workplace.
Economic Empowerment	Mahila Shakti Kendra (MSK) NAMO Drone Didi	To empower rural women through community participation. Provide drones to 15,000 women Self Help Groups, which could be rented for agricultural purposes.

Way ahead

Social Norms and Education: Encouraging families to invest in girls' education, especially in STEM and vocational training, helps women thrive in the workforce.
- For E.g., Girls Who Code (International NGO) teaches computer science to close the gender gap in tech.
Safety and Infrastructure: Safe streets, reliable transport, and childcare support working mothers.
- In Burkina Faso, mobile creches allow mothers to work while their children play safely.
Bridging the Digital Divide: Digital literacy and internet access help rural women access job opportunities.
- For E.g., Google's Internet Saathi trains women in rural India to teach others about the internet.
Addressing the Wage Gap: Equal pay and flexible work policies can support working women.
Formalizing the Informal Sector: Integrating women in the informal sector into the formal economy improves working conditions.