Female Labour Force Participation Rate (LFPR) 

General Studies Paper-1

Context: The India Employment Report, 2024, released by the Institute for Human Development and the International Labour Organization, points out that key labor market indicators have improved in recent years.

Key Findings

• In India the female Labour Force Participation Rate (LFPR) is very low compared to the male counterparts.
• In 2023, for male LFPR was 5%; and for women LFPR was37%. 
  • The world women LFPR rate is 49%,according to the World Bank figures.
• The female LFPR had been steadily declining since 2000 and touched 24.5%  in 2019, before inching up, particularly in rural areas.
• Status of women employed:
  • The Report shows that it is women who largely account for the increase in self-employment and unpaid family work.
  • The share of regular work, which steadily increased after 2000, started declining after 2018.

Reason for poor women labor force participation

• Cultural and Social Norms: In traditional societies, gender roles may discourage women from entering or staying in the workforce. Expectations around women’s responsibilities for caregiving and homemaking limit their ability to pursue full-time employment.
• Educational Attainment:Limited access to quality education can be a barrier for women to acquire the necessary skills and qualifications for certain jobs.
• Unequal Pay: Difference between wage gap, discourage women from entering or staying in the workforce.
• Structural rigiditiesin India’s manufacturing and service sectors have restricted employment opportunities in the informal sector, where a substantial amount of female workforce is involved.
• Security Issues:Sexual harassment at Worlplace often hinders women participation in labor force.

Steps taken by Government

• Code on Wages, 2019: It provides that there shall be no discrimination in an establishment among employees on the ground of gender in matters relating to wages by the same employer, in respect of the same work or work of similar nature done by any employee.
• Maternity Benefit Act, 2017: It was enacted to provide improved maternity benefits and promote a healthier work environment for pregnant and nursing women.
• The Code on Occupational Safety, Health And Working Conditions (OSH), 2020: It has proposed tweaks in employment terms and conditions for women workers in the above-ground mines.
• Rashtriya Mahila Kosh (RMK):It is a national-level organization that provides microfinance services to poor women for various livelihood activities. It supports income-generating projects and promotes women’s economic empowerment.
• National Rural Livelihoods Mission (NRLM):NRLM focuses on creating sustainable self-employment opportunities for rural women. It provides skill training, capacity building, and financial support for women to engage in income-generating activities.
• MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act): It guarantees 100 days of wage employment in a financial year to rural households. Women’s participation in this program is encouraged, and efforts are made to ensure equitable employment opportunities.

Way Ahead

• The increase in labor force participation has come mostly in rural areas and mostly in self-employment, which means largely unpaid work.
• Interventions are needed on both the demand and supply side of the labor market to improve the condition.
  • On the demand side, policies that promote labor intensive sectors (in both manufacturing and relatively higher productivity services) are needed.
• Public investment in safety and transport is also critical along with  public investment in affordable child and elderly care.
• All of these types of support can enable women to work outside the home and take advantage of relatively better paying opportunities.