Female Labour Force Participation Rate (FLFPR) in India | UPSC

Introduction

• India’s low female labour force participation poses a significant challenge to harnessing its demographic dividend. 
• Despite ongoing efforts, the nation has yet to unlock the potential of increasing women’s participation in the workforce. 
• Delayed action in addressing this issue could jeopardize India’s aspiration of achieving developed nation status by 2047.

What is FLFPR?

• The Female Labour Force Participation Rate (FLFPR) refers to the proportion of women actively participating in the labor force—whether employed or actively seeking employment—compared to the total number of women in the working-age group (15 years and above). 
• This critical metric provides valuable insight into gender equality within the workforce and indicates how much women contribute to the economy.

FLFPR Trends in India

India’s Female Labour Force Participation Rate (FLFPR) has seen an upward trend, but it remains far below that of developed nations. Here’s a closer look at how FLFPR is evolving:

• Slow Progress, Low Rates: Despite gradual improvements, India’s FLFPR remains significantly low compared to other countries. The country ranks poorly on the global scale, with only a few regions, like parts of the Arab world, performing worse in terms of female workforce participation.
• Regional Disparities in FLFPR: Interestingly, southern Indian states such as Tamil Nadu, Karnataka, Telangana, Andhra Pradesh, and Kerala show a 13% lower FLFPR compared to northern states like Himachal Pradesh, Rajasthan, Chhattisgarh, Madhya Pradesh, and Jharkhand. This regional variance challenges the assumption that states with higher literacy and empowerment indicators would naturally have higher female workforce participation.
• States with Alarmingly Low FLFPR: Certain states, including Assam, Bihar, Haryana, and Delhi, exhibit extremely low FLFPR, with Delhi at the bottom with only 14.8%. This highlights the urgent need for targeted interventions in these areas.
• Global Comparison: According to the World Bank, India’s female participation in the formal economy is among the lowest globally. This stark reality calls for a comprehensive approach to boost FLFPR and create more inclusive opportunities for women.

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Why is FLFPR Low in India?

• Prevalence of Informal Employment: Over 95% of Indian working women are employed in the informal sector, which lacks benefits such as social security, healthcare, and paid leave. The absence of these protections discourages women from participating in the labor force.
• Limited Job Opportunities: Women in India face a shortage of job opportunities, particularly in manufacturing, and even fewer openings in service sectors that are female-friendly. The limited availability of decent-paying jobs contributes to low FLFPR.
• Wage Disparity and Glass Ceiling: India faces one of the largest gender wage gaps in the world. Women earn significantly less than men for the same roles, which contributes to a high dropout rate in the workforce. The “glass ceiling” further prevents women from advancing into leadership positions, leaving them with fewer opportunities to grow within their careers.
• Gendered Job Roles (Pink Collar Jobs): Societal norms often limit women to specific sectors such as teaching, nursing, and healthcare, with barriers to entry in male-dominated industries such as engineering, law enforcement, and the armed forces. These gendered job expectations restrict the diversity of roles available to women.
• Cultural Expectations and Unpaid Work: In a patriarchal society, women are often expected to manage domestic duties such as childcare, elderly care, and household chores, preventing them from pursuing full-time careers.
• Rise in Household Income: Increased household incomes in rural and urban areas have allowed women the luxury of opting out of work, as their financial contribution becomes less critical for the family’s economic well-being.
• Concerns About Safety: High rates of violence and harassment in public spaces, particularly at workplaces, deter women from seeking employment, especially in roles that require night shifts.
• Educated Unemployment: Despite higher educational attainment among women, many face difficulties finding jobs that match their qualifications, further discouraging participation in the workforce.
• Legal Barriers: Some state-level regulations, such as restrictions on women working in hazardous industries, limit the variety of job opportunities available to women.
• Underrepresentation in Politics: Women constitute just 14.4% of India’s Lok Sabha, despite making up around half of the country’s population. This lack of representation inhibits the development of gender-sensitive policies that can drive higher female workforce participation.

 Importance of Improving FLFPR in India

• Economic Growth Potential: Studies by the IMF suggest that achieving gender parity in the workforce could boost India’s GDP by up to 27%. Involving more women in the labor force would increase productivity and competitiveness, helping India tap into its full economic potential.
• Reducing Feminization of Poverty: Increasing women’s formal workforce participation helps address the issue of feminization of poverty, where women are overrepresented in low-income, insecure jobs. By entering the formal workforce, women can break free from poverty.
• Improvement in Key Social Indicators: Countries with higher female workforce participation tend to have better social indicators, such as lower Infant Mortality Rate (IMR) and Maternal Mortality Rate (MMR). More women in the workforce will contribute to improved healthcare outcomes for society.
• Empowerment Through Financial Independence: Financial independence empowers women, giving them greater decision-making power in the household. This includes choices about family planning and other life decisions, which can contribute to a more equitable society.
• Aligning with Global Development Goals: Enhancing FLFPR is crucial for achieving several United Nations Sustainable Development Goals (SDGs), including SDG 1 (No Poverty), SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), and SDG 10 (Reduced Inequalities).

Government Initiatives to Boost FLFPR

• Maternity Benefit (Amendment) Act, 2017: This legislation extended paid maternity leave to 26 weeks, making it one of the most comprehensive maternity leave policies in the world. It also introduced provisions for crèche facilities in workplaces with more than 50 female employees.

• Anganwadi Centres under ICDS: These centers provide essential services like maternal and child nutrition, early childhood education, and a safe environment for children. By easing the burden of childcare, these centers help women re-enter the workforce post-childbirth.

• National Food Security Act (NFSA), 2013: This law includes provisions for cash transfers to pregnant and lactating women of not less than Rs. 6,000, helping them delay their return to work by providing financial support during critical periods. 
• Stand-Up India Scheme: This initiative offers financial support to women entrepreneurs, SC, and ST individuals, encouraging them to start new businesses in various sectors, including manufacturing, services, and agriculture.

• Sexual Harassment of Women at Workplace Act, 2013: This law ensures safe working conditions for women by addressing and curbing sexual harassment at workplaces, making it a safer environment for women to thrive.

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Way Forward 

• Childcare Subsidies: Providing government-funded childcare subsidies would allow women to balance domestic duties with employment, leading to an increase in workforce participation.
• Comprehensive Policy Framework: A holistic approach that combines skill development, accessible childcare services, maternity protection, and secure transport would foster greater workforce participation by women.
• Reform Restrictive Labor Laws: States need to review and amend laws that limit women’s employment in hazardous jobs. Relaxing such restrictions would open up new opportunities for women in diverse industries.
• Promotion of Self-Help Groups (SHGs): Encouraging the formation of SHGs, modeled after Kerala’s Kudumbashree, would provide women with opportunities for financial independence, social security, and employment.
• Innovative Retention Strategies: Onsite crèches in industrial areas and work hubs would help retain women in the workforce. Programs like SEWA Sangini’s crèche service are examples of successful retention strategies.
• Accounting for Care Economy: The care economy, which largely involves women’s unpaid work, should be incorporated into GDP calculations. Recognizing this contribution will help in the formulation of policies that support women’s roles in both the domestic and formal economy.