Conspicuous absence of women in India's labour force in last 30 years

There are a number of ways to boost the number of women working.

India’s rapid economic growth has been accompanied by falling fertility rates and higher educational attainment among women. These advances often lead to an increase in women entering the labour force, but there has been a surprising decline on this front in India. Less than 30% of working-age women are currently in work compared to nearly 80% of men in India.

The conspicuous absence of women in India’s labour force is part of a wider issue the country is facing when it comes to jobs growth. But the fact that it is affecting women more than men is a worrying trend for India, which tends to rank poorly in UN rankings like the Gender Development Index and Gender Inequality Index, and has historically had low shares of women participating in the labour market. Plus, the number of women working has been gradually falling over the last 30 years.

There are a number of reasons for this, ranging from a lack of jobs growth in female-friendly sectors such as manufacturing, to more women staying in education for longer, and persisting stigma surrounding the idea of women working. As India grapples with boosting the number of jobs available to people – and young people especially – it must ensure it does not leave women behind in the process.

Global trends

It is useful to understand India’s experience against the global landscape. According to the latest estimates from the UN’s International Labour Organisation, the worldwide labour force participation rate in 2018 for women aged 15-64 was 53% while it was 80.6% for similarly aged men. Since 1990, participation rates for both groups have shown an overall decline around the world.

There are, however, variations in these global trends. The number of women working in high income countries went up between 1990 and 2018, largely due to policies like better parental leave, subsidised childcare, and flexibility in jobs. But in South Asia’s low and middle income countries, the number of women working has declined.

In India, female labour force participation fell from 35% in 1990 to 27% in 2018. India fares better than its neighbour Pakistan (where the rate increased from 14% to 25% over the same period). But it lags behind Bangladesh, Sri Lanka and Nepal, and other countries at similar stages of growth and development.

There are regional and demographic differences across the country. Rural women have higher participation rates than their urban counterparts. Married women, less educated women, and women from higher castes are less likely to participate in the labour market.

Business Standard