Context

The Institute for Human Development and the International Labour Organization (ILO) recently released the India Employment Report 2024.

• The research is mostly based on data analysis from the National Sample Surveys and Periodic Labour Force Surveys conducted between 2000 and 2022.

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Key highlights of the India Employment Report 2024

• Shifting of Workforce in Non-farm Sectors: The 2000- 2019 period witnessed gradual and continuous shift of the workforce away from agriculture into non-farm sectors, a trend which is still continuing.
• Employment trends in India: Employment in India is primarily self-employment and casual employment with approximately 82 percent of the workforce works in the informal sector, with approximately 90 percent informally employed.
• Stagnant Wages: While casual laborer salaries rose modestly between 2012 and 2022, regular workers’ actual wages remained stagnant or fell.
• The rate of youth not in employment, education or training: South Asia with an average of 29.2% between 2010 and 2019 have the highest rate of youth outside employment, training and education.

Outlook on Women Employment in India

• Female Labour Force Participation Rate: The Female Labour Force Participation Rate (LFPR) was 37 in 2023 as compared to 78.5 for Males. The world women LFPR rate is 49 as per the World Bank.

• • The female Female Labour Force Participation Rate (LFPR) had been steadily declining since 2000 and touched 24.5 in 2019, before inching up, particularly in rural areas. 
• Uptick in Participation: Women accounted  for the largest share in the increase in self-employment and unpaid family work.
  • Nearly two-thirds of the incremental employment after 2019 comprised self-employed workers, among whom unpaid (women) family workers predominate.
  • The share of regular work, which steadily increased after 2000, started declining after 2018.
• The rate of youth not in employment, education or training: India also has a large share of youth not in employment, education or training but  the rate is higher among young women than men.

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Reasons for Low Women’s Participation

• Gross enrollment in higher education: The GER among women was 47.3 per cent in the 2021-22 period, therefore delaying entering into labourforce.
• Overall scarcity of paid work: India’s growth pattern has not been job intensive with limited skilled jobs preferring Males over Females.
• Indian social norms: Women are seen as the primary caregivers at home which restricts their mobility limiting their freedom to take up available opportunities.
  • Women’s  choices have often been limited by marriage and responsibility for the home and family.
• Limited option: Concerns over public safety and lack of transport also confine women to looking for work close to home, further limiting their options.
• Supply  and Demand Arithmetic for female labor: These include women’s opportunities for combining paid work and a family, decisions relating to education and childrearing, technical innovations, laws and norms, and the structural transformation of the economy.

What Needs to Change?

• Focus growth in labour intensive sectors: Policies that promote labor intensive sectors (in both manufacturing and relatively higher productivity services) are needed like Textiles and IT.
• Increase in Public investment: Public Investment for safety (eg: street lighting and CCTVs) and transport (affordable last mile public transport connectivity)  is as  critical as is public investment in affordable child and elderly care.
• Safe Accomodation: Investments in the construction of working women hostels to enable easy movement for work away from home
• Recognising unpaid care work as a form of economic activity.