Women’s employment in India has shown an encouraging trend in recent years. More women are joining the workforce, contributing to the country’s economic growth. According to the latest Periodic Labour Force Survey (PLFS) 2021-22, there has been a significant increase in the Female Labour Force Participation Rate (LFPR). However, the data reveals a stark difference in women’s employment between rural and urban areas.
Increase in Female Labour Force Participation
The PLFS 2021-22 report highlights that 32.8% of women of working age (15 years and above) were part of the labour force. This is a notable rise from 23.3% in 2017-18, marking an increase of 9.5 percentage points over these years. This surge is more pronounced in rural areas than in urban areas.
Rural vs. Urban Employment
In rural areas, the female LFPR increased by 12 percentage points, from 24.6% in 2017-18 to 36.6% in 2021-22. This shows that more rural women are joining the labour force, contributing to their families and the economy. On the other hand, urban areas saw a smaller increase. Female LFPR in urban areas rose from 20.4% in 2017-18 to 23.8% in 2021-22, an increase of just 3.4 percentage points.
Talking about the increase in the hiring of women in jobs, Amit Jain, Chief People Officer, PeopleStrong, said, “Achieving gender parity and empowering women is a strategic necessity for organizations. Leaders recognize that diversity attracts talent. Taggd’s Decoding Jobs report shows leaders expect more women hires in 2024. Women will comprise 36% of the workforce, up from 33% in 2023.”
He further added, “Iceland has led the gender parity index for over a decade, while India ranks 129th, according to WEF’s Gender Gap report. This disparity highlights the need for fair and equitable employment opportunities for women. The number of women employees at entry level is improving. However, many talented women leave managerial positions due to family commitments. Organizations must implement child-care facilities, compensation benefits, and flexible work policies to retain women at middle management. Japan has achieved over 50% female workforce participation through various women-driven strategies. Some organizations run “Return to Work” programs targeting women who took extended breaks.”
Current Statistics
Rural Areas
According to Employment Statistics in Focus-April 2023 report:
- 36.6% of women aged 15 years and above in rural areas are participating in the labour force.
- 39.3% of women in the 15-59 years age group in rural areas are part of the labour force.
- Overall LFPR in rural areas is 57.5% for persons aged 15 years and above, and 60.8% for the 15-59 years age group.
Urban Areas
- 23.8% of women aged 15 years and above in urban areas are participating in the labour force.
- 26.5% of women in the 15-59 years age group in urban areas are part of the labour force.
- Overall LFPR in urban areas is 49.7% for persons aged 15 years and above, and 54.5% for the 15-59 years age group.
Talking about bridging the employment gap between urban and rural women, Ms. Mayara Neeraj Sharma, Business Head, MultiFit, said, “Bridging the employment gap between urban and rural women is crucial for balanced economic development. Companies must create inclusive work environments with targeted policies. They should use technology to offer flexible job opportunities. This will address systemic barriers and tap into a diverse talent pool. It will foster innovation and growth within organizations and the broader economy.”
The Gap in Women’s Employment
The data clearly shows that women’s employment is 12.8% lower in cities compared to villages. This gap is significant and highlights the challenges urban women face in joining the workforce.
Talking about the need of skill development among women, Ms. Deepali Bansal, Co-Founder, Suroskie, said, “Today, women are excelling in every field. To build on this momentum, women seeking self-reliance should focus on skill development and tap into India’s rapidly expanding entrepreneurial landscape. This will not only boost their participation in the workforce but also empower them to create jobs and opportunities for others, driving innovation and fostering a more inclusive, dynamic economy. By embracing entrepreneurship, women can shatter barriers and set new standards for success.”
When asked about this significant gap in the employment rate, Ms. Anita Kukreja, Head – Strategic Alliances & Brand, IceWarp, said, “In India, women’s employment rates are 12.8% lower in cities than in villages, revealing a significant urban-rural disparity. Addressing this gap requires urban policies that promote inclusive work environments and tackle systemic barriers. Leveraging technology and innovation can help urban areas create equitable opportunities for women, fostering economic growth and social progress. IceWarp is dedicated to empowering women through accessible technology and fostering a workplace culture that champions gender equality.”
Reasons for the Gap
Several factors contribute to this disparity:
- Cultural and social norms: In urban areas, traditional gender roles might still be prevalent, discouraging women from working outside the home.
- Availability of jobs: There might be fewer job opportunities for women in urban areas compared to rural settings.
- Safety concerns: Concerns about safety and harassment in urban workplaces can deter women from seeking employment.
- Work-life balance: Urban women often face difficulties balancing work and household responsibilities, which can limit their participation in the labour force.
Ms. Akanksha Sharma, CEO & Co-founder of CITTA, shared her insights on bridging the gap in women’s employment, “It’s great to see more women joining the workforce. However, the gap between urban and rural areas needs urgent attention. Urban policies must evolve to create inclusive work environments and remove barriers to women’s employment. By fostering supportive ecosystems, we can ensure equal opportunities for women in both urban and rural areas. It’s crucial to create a balanced economy where every woman, regardless of location, can contribute to and benefit from India’s growth.”
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The increasing trend in female labour force participation is a positive sign for India’s economic growth. However, the significant gap between rural and urban women’s employment needs to be addressed. Policymakers and stakeholders must work towards creating a more inclusive and supportive environment for women in urban areas. This includes improving job opportunities, ensuring safety at workplaces, and promoting gender equality. By doing so, India can harness the full potential of its female workforce and achieve more balanced economic development.