AI Insights

Gender Gap in Employment: What's holding women back?

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This post has been authored by Shubhangi Futtela, the Research Analyst Intern at Arthashastra Intelligence.


According to a report by CMIE (Centre for Monitoring Indian Economy), 21 million women permanently left the labor workforce during the period 2017 – 2022. Though women represent 49% of India\’s population, their contribution is only 18% of total economic output. The female labor Participation Rate in India in 2021 is 19% which is considerably low as compared with neighboring countries like Sri Lanka and Bangladesh where FLPR is 31 and 35 percent respectively as per World Bank Estimates. For males, LFPR is 70% which reflects the huge gender gap difference of 50 percentage points. Considering the scenario and stats, the question arises why has Female LFPR not increased with the implementation of various education policies by the government and the steady economic growth rate in the country?

Why Indian women are moving away from the workforce? The first and foremost reason is the domestic work, child care, and responsibilities within the household which act as constraints on FLFP, even for educated women. Due to our societal norms, women are disproportionately overburdened with domestic work and hence face time poverty. Secondly, unavailability of decent and quality job opportunities for women as well as inadequate infrastructure to support women\’s mobility in the workforce. In terms of rural-urban disparities, informal employment accounted for 96 percent of total jobs in rural regions, with female informal employment being 98 percent compared to male informal employment at 95 percent. In urban India, 79% of jobs were informal, with 82 percent of total female employees in informal employment compared to 78 percent of urban male workers. The third reason is the safety and security of women in the workplace. Women face sexual harassment and gender-based violence in a male-dominated workplace. The fourth reason is gender disparities in education and hence results in inequalities in the labor market. The fifth reason is the lack of recognition for unpaid care work in the household which in turn act as a serious impediment to women\’s economic empowerment and affects their mental health. All these factors force women to quit the workforce and societal norms pressurize educated women to be homemakers.

With the change in socio-cultural attitudes and more empowerment, women can prove to be catalysts for the country\’s development. Though the COVID-19 and post-pandemic hybrid work models could prove to be game-changers for many women by providing flexibility and inventive employment options as well as more empathic work cultures. The creation of more home-based working options can enable them to balance both work and home better. The provision of reliable and accessible child care arrangements can enhance FLFP. Skill Development programs and vocational training can enhance the FLFP rates. Proper implementation of legal protections and anti-discriminatory laws can ensure equal treatment and opportunities as well in the labor market. Thus, the economic empowerment of women can be attained when they become an integral part of the labor force and gainfully employed.


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