Women's Labour Force Participation in India

Main Barriers

• Demand-Side Constraints: 
  Chairman of the Economic Advisory Council to the Prime Minister, S Mahendra Dev, identified demand-side constraints as key barriers to women's labour force participation, surpassing supply-side factors such as social norms.
  • High unemployment among educated women suggests inadequate demand for suitable jobs.
  • Approximately 40% of educated women are unemployed.
• Social Norms: 
  Historically influential but less significant than demand-side constraints.

Current Labour Force Participation

• Importance of Female Labour Force Participation Rate (FLFPR): 
  Increasing FLFPR is critical for inclusive growth and sustaining long-term economic expansion.
• Current Statistics: 
  The Periodic Labour Force Survey (PLFS) indicates women's labour force participation rate is around 40% for those aged 15 and above.
  • Much of the increase is due to subsistence work in agriculture, self-employment, and unpaid work.
• Unpaid Work: 
  Women contribute significantly through unpaid work, estimated to be around 10% of GDP if monetized.

Challenges and Opportunities

• Reasons for Low Participation: 
  • 45% of women cite childcare, homemaking, and personal commitments as barriers.
  • In urban areas, this figure rises to 53%, highlighting the need to strengthen the care economy.
• Manufacturing Sector: 
  Slow growth in labour intensity since Independence has limited large-scale employment opportunities for women.