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Labour, Jobs and Employment – Harmonization of labour laws, gender gap, unemployment, etc.

More Women join the labour force, but are they really employed?

Introduction

The female labour force participation rate (FLFPR) is often viewed as a proxy for gender equality and economic dynamism. India’s FLFPR dropped from 31.2% in 2011-12 to 23.3% in 2017-18 but has dramatically risen to 41.7% in 2023-24. At first glance, this looks like a success story. However, closer scrutiny reveals that most women are being absorbed into agriculture, unpaid household enterprises, and low-paying self-employment, rather than formal or secure wage jobs. The paradox is clear: more women are being “counted” in the labour market, but their earnings and economic independence remain stagnant or declining.

Why is female labour force participation in the news?

  1. Sharp rise in FLFPR: Jumped from 23.3% in 2017-18 to 41.7% in 2023-24.
  2. First-time reversal: After years of decline, the participation rate is rising again.
  3. Underlying concern: Despite more women “working,” earnings have fallen, and secure wage jobs remain elusive.
  4. Contradiction: Participation has grown, but instead of diversifying into services/industry, women are moving back into agriculture.

What explains the rise in female participation?

  1. Rural women as drivers: Most of the rise is accounted for by women in rural India.
  2. Shift from domestic duties: Share of women reporting “domestic duties” fell from 57.8% (2017-18) to 35.7% (2023-24).
  3. Rise in unpaid helpers: Share of “helpers in household enterprises” rose from 9.1% to 19.6%.
  4. Self-employment increase: “Own account workers and employers” rose from 4.5% to 14.6%.

Are women moving to better jobs?

  1. Agriculture dominance: Share of rural women in agriculture rose from 71.1% (2018-19) to 76.9% (2023-24).
  2. Decline in other sectors: Women’s share in both secondary (industry) and tertiary (services) sectors has fallen.
  3. Blurring boundaries: Women’s unpaid household work overlaps with helper roles in household enterprises, making it questionable whether this should count as “employment.”

What about earnings and job quality?

  1. Declining real earnings: Except for casual workers, earnings have declined across categories—self-employed, salaried, and even employers.
  2. Vulnerability of self-employment: More women are reporting self-employment, but this has not translated into higher income.
  3. No wage expansion: Growth in FLFPR has not been accompanied by secure wage-based jobs.

Why does this matter for India’s economy and gender equality?

  1. False signal of empowerment: Higher FLFPR without earnings security reflects distress-driven participation, not genuine empowerment.
  2. Economic vulnerability: Rising unpaid and low-paid work lowers household resilience and women’s autonomy.
  3. Policy challenge: Employment growth is not keeping pace with women’s entry into the workforce, pointing to structural issues in India’s labour market.

Conclusion

The sharp rise in India’s female labour force participation hides more than it reveals. Women are being pushed into unpaid or poorly paid work, especially in agriculture and household enterprises, while real earnings are falling. This suggests that India’s growth story is not translating into dignified employment for women. For true gender equality, the focus must shift from mere participation numbers to quality, security, and remuneration of women’s work. Only then will women’s economic empowerment become a reality.

PYQ Relevance

[UPSC 2023] Distinguish between ‘care economy’ and ‘monetized economy’. How can the care economy be brought into a monetized economy through women empowerment?

Linkage: The article highlights women’s shift from domestic duties to unpaid helper roles, directly linking the care economy to the challenge of integrating it into the monetized economy through women’s empowerment.

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