Abstract
Female labour force participation (FLFP) in India remains critically low, with only about 30% of women engaged in paid employment, despite their significant potential contribution to the country’s GDP. Several factors, including socio-cultural norms, economic structures, and systemic barriers, limit women’s workforce participation in both rural and urban settings. Recent trends, however, indicate a positive shift. The female labour force participation rate (FLFPR) has increased from 32.8% in 2021-22 to 37% in 2022-23, driven by improved educational access and evolving societal norms. Notably, rural women have shown a 14% increase in participation, reflecting diminishing traditional barriers. The entry of younger, more educated women into the workforce and a gradual transition from informal to formal employment highlight significant progress. Government initiatives, such as skill development programs and entrepreneurship schemes, have played a pivotal role in this advancement. However, challenges like unpaid domestic labor, safety concerns, and occupational segregation persist. Addressing these barriers through targeted policies is essential for sustaining growth in FLFP and achieving gender equity. Unlocking the full potential of women in the workforce will be crucial for India’s inclusive economic development and social progress.
Keywords: Female Labor Force Participation, Gender Equity, Economic Development
Introduction
Female labour force participation (FLFP) in India remains critically low approximately 30% of India’s women work at paid jobs. Female workforce participation has been a serious issue in the country as they contribute significantly in the GDP of the country. There are various factors holding women back from paid jobs in rural and urban settings. A few can be interlinked socio-cultural norms, economic structures, and systemic barriers, with strong evidence suggesting that targeted interventions such as investing in safe infrastructure, childcare, skilling programs, and addressing occupational segregation are essential to unlocking FLFP’s economic and societal potential.
Emerging trends in female workforce participation in India reveal a complex landscape shaped by socio-economic changes, educational advancements, and evolving cultural norms. Although the recent data indicates a significant increase in female labour force participation rates (FLFPR), particularly in rural areas, highlighting the growing engagement of women in economic activities
It was in 1848 that India got its first school for girls, thanks to Savitribai Phule and her husband, Jyotirao Phule. Thirty-five years later, India and the British Empire got their first female graduates — Chandramukhi Basu and Kadambini Ganguly. We may think 140 years would be a good enough time for India to go from receiving its first female graduates to reaching gender parity in the labour force contributing to the country’s economy. But in 2023, that is sadly still not true.
Major Drivers of Low Female Labour Force Participation
Socio-Cultural Barriers:
- Patriarchal norms and unpaid caregiving work constrain women’s participation, particularly in middle-income households due to income effects [1, 3, 5, 14].
- Safety concerns—especially in commuting—and restrictive notions of “respectable” work deter urban FLFP.
Economic Structures:
- Mechanization in agriculture and inadequate job creation in non-agricultural sectors (e.g., manufacturing, services) have marginalized women, especially in rural areas.
- Persistent occupational segregation and wage gaps limit opportunities, particularly for women with moderate education.
Regional and Educational Mismatches:
- Women in northern and rural states face more socio-economic constraints compared to relatively higher FLFP in southern and northeastern states.
- The U-shaped relationship between education and FLFP holds, with highly educated women participating more, but moderately educated women often remaining excluded.
Key Trends in Female Workforce Participation
Women’s participation in India’s workforce has seen notable changes in recent years, reflecting broader socio-economic dynamics and evolving cultural attitudes. The female labor force participation rate (FLFPR) has risen significantly, increasing from 32.8% in 2021-22 to 37% in 2022-23, according to the Periodic Labour Force Survey (PLFS). This upward trend is particularly pronounced among rural women, whose participation rates surged by 14%, compared to a 5% increase for urban women. This shift indicates a growing engagement of women in economic activities, particularly in rural areas where traditional barriers may be gradually diminishing. One of the most significant trends is the entry of younger and more educated women into the workforce. The participation of women with higher secondary education rose from 11.4% in 2017-18 to 23.9% in 2023-24. This trend reflects improvements in educational access and changing societal attitudes towards women’s roles in the labor market. As educational attainment increases, more women are pursuing careers beyond traditional roles, contributing to a more diverse workforce. Additionally, there is a gradual transition from informal to formal employment among women. While many still engage in unpaid or casual work, the share of women in salaried positions is growing. This shift positively impacts income levels and helps reduce gender disparities in earnings. The increased recognition of women’s work, including unpaid labor, has also led to more accurate reporting of female employment statistics, highlighting the need for policies that support women’s economic contributions.
Source: https://www.statista.com
Government initiatives aimed at promoting entrepreneurship and skill development have played a crucial role in enhancing female workforce participation. Various state-level schemes have been instrumental in empowering women, particularly in rural areas, enabling them to thrive across diverse sectors. Programs like the Deendayal Antyodaya Yojana and the Self-Help Groups initiative have empirically shown positive impacts on women’s empowerment and economic engagement. Economic necessity also drives the rise in FLFPR, as families increasingly seek dual incomes for financial stability. The decline in fertility rates and improvements in women’s education create an environment conducive to increased workforce participation. As families recognize the importance of women’s contributions to household income, societal norms surrounding gender roles are beginning to shift.
While there are encouraging trends regarding women’s participation in India’s workforce, challenges remain. Addressing these barriers will be essential for sustaining this growth and ensuring that women’s economic empowerment translates into long-term benefits for society as a whole. As India continues on its path toward economic development, fostering an inclusive labor market that values and supports women’s contributions will be vital for achieving sustainable growth and social equity.
Challenges Ahead
Despite these positive developments, challenges remain. Many women continue to face barriers such as societal expectations regarding domestic responsibilities and safety concerns that hinder their full participation in the workforce. Moreover, the high incidence of unpaid work among women highlights the need for policies that recognize and value all forms of labor.
Conclusion
The emerging trends in female workforce participation in India indicate a positive trajectory towards greater economic engagement among women. However, sustained efforts are necessary to address existing barriers and ensure that this growth translates into long-term empowerment and equality. As India seeks to harness its demographic dividend, increasing women’s participation will be vital for achieving inclusive economic growth and social progress.
Sources:
Periodic Labour Force Survey (PLFS) Report, Ministry of Statistics and Programme Implementation.
Economic Survey of India.
Additional insights from various reports on female labor utilization.
https://pib.gov.in/PressReleasePage.aspx?PRID=1967291
https://www.orfonline.org/expert-speak/the-female-workforce-in-india-emerging-trends-and-insights
https://www.mospi.gov.in/sites/default/files/press_release/Press_note_AR_PLFS_2023_24_22092024.pdf
https://www.epw.in/engage/article/insights-female-labour-force-participation-india
https://www.orfonline.org/expert-speak/the-female-workforce-in-india-emerging-trends-and-insights
About the Author
Dr. Preeti Garg is an accomplished academic and researcher with over 17 years of extensive experience in academia, research, and industry. Currently serving as an Associate Professor in the Department of Finance at the Global Institute of Business Studies, Bangalore, Dr. Garg holds a Ph.D. in Management from the University of Mysore and an M.Phil. from Christ University, Bangalore. Her exceptional contributions to research have earned her prestigious accolades, including the “GEMS of ISBR” award by the ISBR Research Center for her Ph.D. project and research initiatives. Dr. Garg’s research achievements include multiple publications and presentations at national and international conferences, where she was honored with the “Best Paper Award” at the ADMAS Conference. Additionally, she holds a patent from the Intellectual Property Rights India for her innovative project on the “Agriworker Task Allocation Device.”
