Female Labour Force Participation In India

In an economy chasing global status, why are so many women still absent from its workforce?

The answer lies in a legacy of colonial labour divisions, entrenched patriarchy, and cultural norms that still dictate gender roles. Even when women work, they're often confined to informal, underpaid jobs, with little autonomy over their income. Legal rights exist, but social expectations continue to determine who works and who is expected to sacrifice.

India's demographic dividend means little if half the population remains sidelined. The barriers are not only economic—they are social, systemic, and often invisible.

Unvieling The Realities: Women's Status In India

Despite policy initiatives like Beti Bachao, Beti Padhao and Sukanya Samriddhi Yojana, gender disparity persists. Women remain underrepresented in Parliament and undereducated compared to regional neighbours like Nepal and Bangladesh. Only 48% complete basic schooling^[1].

Cultural expectations continue to dominate: "Aurat kaam pe jaegi toh ghar ka kaam kaun karega?" This sentiment reinforces gender roles where women stay home and men provide. Despite India's remarkable economic growth, women comprise only 27% of the workforce as of 2016, down from 35% in the 1990s, ranking among the lowest in female workforce participation among G20 nations^[2].

Legislative strides, like the 2017 amendment to the maternity benefits act, extending paid maternity leave to 26 weeks, primarily benefit formal sector employees^[3]. However, the majority of women work in the unorganized sector or small companies, where these provisions may not apply. Realistically, only about 20% of organized sector workers are female, rendering the law applicable to just 1.3% of the labour force or less than 1% of all females^[4]. Moreover, employers in the organized sector may hesitate to provide paid maternity leave due to lack of government financial support, potentially dissuading them from hiring women altogether.

Gender inequality begins at birth. The continued prevalence of female foeticide and the past GST taxation of sanitary products highlight systemic gender bias. Over 34,000 rape cases are reported annually—yet India still hasn't criminalized marital rape, unlike over 100 other countries^[5]. The refusal reflects a societal discomfort with female autonomy and consent.

India's Position Globally In Female Labour Force Participation

In India, the rate of women's participation in the labour force has declined from 30.4% in 1990 to 23.4% in 2019^[6]. Though India's female labour force participation exceeds Pakistan's, it still lags behind Bangladesh, Sri Lanka, and Nepal. Rural women participate more than urban counterparts, but married women, those with limited education, and upper-caste women are less likely to work.

The decline, despite economic growth, reflects deep-rooted barriers—patriarchal norms, limited job access, educational gaps, and caste-based inequality. Addressing this requires targeted policies: expanding education and skilling, affirmative action, affordable childcare, and workplace reforms. Tackling these structural issues is key to unlocking women's full economic potential.

Deciphering The Causes Behind Low Female Labour Force Participation Rate In India

Falling labour force participation rate among women (per cent, all ages)

Data from the 68th Round reveals a stagnation in the overall female labour force participation rate, currently standing at 22.5%, a slight decrease from 23.3% in 2009-10^[7]. While rural areas witness a decline, urban areas show a modest increase. However, the 2011-12 data indicates a drop in working women in rural regions, with those employed more likely in subsidiary roles than in 2009-10. Women's labour force engagement results from a complex interplay of economic and social factors at individual, household, and societal levels. Globally, drivers include educational attainment, fertility rates, age of marriage, economic growth, and urbanization, alongside social norms dictating women's public roles.

Four major drivers shape this trend:

1. Increased Female Education: Rising enrolment in secondary education delays workforce entry but hasn't translated into employment.
2. Limited Jobs: Sectors that could absorb female labour, especially in rural areas, haven't expanded meaningfully.
3. Household Income Effect: As family income rises, women are less likely to work, especially in patriarchal settings^[8].
4. Methodological Issues: Surveys often underreport informal or unpaid female labour.

In India, the income effect often outweighs the substitution effect—where rising wages should theoretically encourage more work. Women in higher-income households often withdraw from the workforce, not for leisure, but due to social pressure and traditional roles.

Fertility and caregiving are also key barriers. Maternity can interrupt careers, and without support systems like childcare or flexible work, re-entry into the workforce is often impossible.

But these cultural dynamics only scratch the surface. Several other invisible factors continue to shape women's participation in the labour force:

1. Necessity over Aspiration: Poorly educated women often work out of need, not choice—mainly in agriculture or domestic work.
2. Household Stability: In male-dominated households, women may stay out of work to maintain status or harmony.
3. Social Stigma: Cultural disapproval of women working in certain sectors like manufacturing keeps many away, even when willing and qualified.
4. Domestic Burden: With little redistribution of household responsibilities, women face time poverty that prevents formal employment.
5. Perception of Status: In many families, a woman not working is seen as a symbol of financial comfort and social respectability.
6. Declining Fertility: A positive trend—fewer children may eventually free up more time for women to seek work.

Ultimately, India must confront a truth it often avoids: empowering women economically means dismantling the social structures that limit their choices. We cannot legislate our way to gender parity without addressing the cultural norms that shape every decision women make—inside the home and out.

The relationship between female education and employment follows a U-shaped trajectory curve, indicating the following trends:

The relationship between education and FLFP in India follows a U-shaped curve:

• Women with low education work out of necessity.
• Moderately educated women often drop out due to stigma and lack of suitable jobs.
• Highly educated women re-enter the workforce, driven by opportunity and reduced stigma.

As economies shift from agriculture to services, female participation initially dips—then rises again with improved education and job diversity.

China Vs India

India's labour force significantly lags behind China, with only 51% participation compared to China's 76%. This disparity extends to female employment, where India's workforce comprises only 25% women, contrasting sharply with China's 71%^[9]. Smaller economies in the region, such as Indonesia and Malaysia, boast higher female labour force participation rates.

India's large working-age population should be a strength. But cultural, policy, and infrastructural limitations prevent this demographic from realizing its full potential.

a) Demographic Dividend vs. RealityIndia's youth advantage is wasted if women remain economically inactive. The visual buzz of a local market hides the reality that many women are excluded.

b) Cultural & Socio-Economic ConstraintsRigid gender norms and expectations around caregiving and mobility limit women's access to education and jobs.

c) Policy & Structural GapsLack of quality schools, job skilling, and workplace support systems disproportionately affect women.

d) Lessons from Regional PeersCountries like Indonesia and Malaysia have improved FLFP through inclusive policies—education access, workplace protections, and public childcare.

India's labour force participation rate (ages 15-59) increased from 51.5% to 58.3% between 2017-18 and 2022-23, driven by rising female participation, particularly in rural areas^[10]. To sustain and grow this trend, deep structural reform—not surface-level schemes—is essential.

Here are six urgent policy pillars:

1. Inclusive Job Creation: Generate meaningful employment in rural and semi-urban areas.
2. Education & Skilling: Invest beyond basic schooling—promote vocational and higher education for women.
3. Ease Domestic Burden: Provide childcare, maternity benefits, and flexible work options.
4. Infrastructure & Safety: Improve transport, sanitation, and public safety to enable mobility.
5. Legal Protections: Ensure equal pay, workplace safety, and criminalize marital rape. Extend protections to informal workers.
6. Smarter Data Collection: Use better surveys to capture unpaid and informal work, aligning with global standards.

India doesn't need more slogans. It needs systemic change. Empowering women economically is not just about justice—it's a national imperative. Until the barriers fall, the full potential of India's economy will remain out of reach.

Views Are Personal. 

1. Global Gender Gap Report, WORLD ECONOMIC FORUM (July,2022), https://www3.weforum.org/docs/WEF_GGGR_2022.pdf ↑

2. Female Labour Utilization in India, EMPLOYMENT STATISTICS IN FOCUS (April, 2023), https://dge.gov.in/dge/sites/default/files/2023-05/Female_Labour_Utilization_in_India_April_2023_final__1_-pages-1-2-merged__1_.pdf ↑

3. Maternity Benefit (Amendment) Act, 2017, § 5, No.6, Acts of Parliament, 2107 (India). ↑

4. Report Of the Working Group on Empowerment of Women for The XI Plan, AICTE- INDIA, https://www.aicte-india.org/downloads/woman_empowerment.pdf ↑

5. Sexual assault against women in India, BALLARD BRIEF (December 2017), https://ballardbrief.byu.edu/issue-briefs/sexual-assault-against-women-in-india ↑

6. The World Bank, "Labor Force Participation Rate, Female (% of Female Population Ages 15+) (Modelled ILO Estimate), India," The World Bank Databank (2018). ↑

7. Decline in Rural Female Labour Force Participation in India: A Relook into the Causes, THE JOURNAL FOR DECISION MAKERS (2015), https://www.ies.gov.in/pdfs/decline-in-rural-female-labour-force-participation-in-india.pdf ↑

8. Women's Low Employment Rates in India: Cultural and Structural Explanations, INDIA HUMAN DEVELOPMENT SURVEY (April 2021), https://ihds.umd.edu/sites/default/files/WP2021-04_EducWLFP22ndAug2021.pdf ↑

9. CNBC, https://www.cnbc.com (last visited Sept. 28, 2023). ↑

10. THE WIRE, https://thewire.in/labour/illusory-or-real-unpacking-the-recent-increase-in-womens-labour-force-participation-in-india (last visited Dec. 19, 2023). ↑