WOMEN LABOUR FORCE PARTICIPATION – ECONOMY

News: Women, marriage and labour market participation

 

What's in the news?

       Women’s labour market participation is often concomitant with enhanced economic prospects and better household decision-making power.

 

Key takeaways:

       From a macroeconomic standpoint, a diminished level of women’s labour force participation rate (LFPR) has significant consequences for women’s intra and inter-household bargaining power, as well as the overall economic progress of the nation.

       The economic impact of the non-participation of married women in the workforce in India is considerable, given their substantial representation among the working-age population.

 

Low Labour Force Participation of Women in India:

       According to the International Labour Organisation’s (ILO) Report, 2019, 1.3 billion women were in work in 2018 as compared to 2 billion men – a less than 2% improvement in last 27 years. The report highlighted that women are paid 20% lower than men, as a global average.

       Women remain underrepresented at the top, a situation that has changed very little in the last 30 years. Less than one-third of managers are women.

 

Reasons for low labour force participation of women in India:

1. Lack of opportunities:

       In recent times, rural distress has affected women the most as income-generating opportunities have disappeared.

       The problem of ‘labour demand constraints’ or the lack of suitable job opportunities is acute for women in rural India, with a fall in the availability of farm jobs and the lack of economic opportunities in non-farm employment.

       Mechanisation of farm and non-farm activities has also reduced opportunities for work.

2. Women education:

       Data from the National Sample Survey Office (NSSO) show that education and employment have a U-shaped relationship (a rise and subsequent decline in employment with the rise in education levels).

       Work participation drops sharply for women with primary and secondary education and rises only with college-level education.

       Further, the non-availability of white collar jobs, disproportionate long hours and lesser job security narrow downs the job opportunities for educated women in India.

3. Unpaid work:

       A 2018 study has found that the time spent on unpaid economic activities performed at the household and community levels by women is one of the important determinants of the FLFPR.

4. Gender bias:

       Constraints in form of casteist and patriarchal notions of purity and pollution where women are prohibited from certain jobs, especially in the food processing, sericulture, and garment industries has added to the low participation.

       Factors like income of other members of the household, social background and place of residence also add to the lack of women’s participation in the workforce.

       Moreover, rural societies are segregated rigidly on gender basis dictated by patriarchal norms that are further perpetuated by religious taboos and cultural biases.

5. Changing family nature:

       Of late, with a reduction in family sizes and distress migration of rural males, the burden of unpaid work on women has been increasing disproportionately.

       The burden of domestic work and unpaid care inhibits women’s ability to acquire skills for better jobs, leading to a vicious cycle of women being kept out of the labour force.

6. Under-reporting:

       Though most women in India work and contribute to the economy in one form or another, much of their work is not documented or accounted for in official statistics and thus women’s work tends to be under-reported.

7. Other factors:

       Like lack of sanitation, sexual harassment at workplace, unsafe travelling, poor childcare facilities and care homes for the elderly etc. has prevented women from working in the industries.

 

Women continue to face many barriers to enter labour market and to access decent work and disproportionately face a range of multiple challenges relating to access to employment, choice of work, working conditions, employment security, wage parity, discrimination, and balancing the competing burdens of work and family responsibilities.