Women have always been the backbone of societies, economies, and families, often working behind the scenes to drive economic growth, sustain communities, and nurture families. From farming and entrepreneurship to caregiving and household management, women’s contributions are integral to the functioning of both the formal and informal economies. However, despite their vital roles, women’s participation in the labour force has historically been undervalued and underreported, often leaving their economic contributions invisible. In recent years, there has been a growing recognition of the need to empower women economically and address the gender disparities that persist in the workforce. As India continues its journey toward greater gender equality, understanding the dynamics of female labour force participation and the challenges women face is essential.
India’s female labour force participation rate (FLFPR) has seen a notable increase over the past few years, rising from 23.3% in 2017-18 to 41.7% in 2023-24 for women aged 15 and older. This positive shift marks a reversal of the decline witnessed between 2004-05 and 2017-18, largely driven by rural women. The labour force participation of rural women surged from 24.6% to 47.6%, while urban women saw a modest increase from 20.4% to 28%. Despite this progress, gender disparities remain significant, with men’s labour force participation nearly double that of women.
While the increase in FLFPR is partly due to improved measurement of women’s unpaid work, the quality of employment remains a concern. Earnings for rural self-employed women have been declining, and women in all sectors earn significantly less than men, with rural women at the bottom of the pay scale. Despite more women entering the workforce, the gender gap in earnings has actually widened for those in self-employment, underscoring the persistent inequality in the labour market.
To address these issues, targeted policy interventions are essential. Creating more non-farm job opportunities in rural areas is a priority. Promoting small and medium enterprises, enhancing vocational training, and supporting female entrepreneurship can create paid work closer to home, especially in areas where reliable transport options are limited. Initiatives like microfinance programs, targeted training in entrepreneurship and financial literacy, and platforms to connect women entrepreneurs with markets can help women establish and grow their businesses. Access to reliable utilities, including electricity and internet, is also vital for women to run their businesses efficiently.
While the rising FLFPR is an encouraging sign of progress, it is essential to look beyond participation rates and focus on improving the quality of work available to women. Creating meaningful, well- paying jobs, addressing the societal norms that limit women’s domestic involvement, and ensuring sufficient job creation across the economy will be pivotal in advancing women’s economic independence and empowerment in India.