Why in the news?

  • The Labour Ministry reported that women’s employment rate in India nearly doubled from 22% in 2017-18 to 40.3% in 2023-24, while female unemployment fell from 5.6% to 3.2%.

Women Employment in Indian Economy

  • Status of Women’s Employment
    • Labor Force Participation Rate (LFPR):
      • Around 42% for women (compared to ~77% for men).
      • Lower in urban areas (~23%) than rural areas (~35%).
    • Worker Population Ratio (WPR):
      • Rose to about 40%, indicating more women engaged in some economic activity.
  • Trends ( 2017 – 2024):
    • WPR doubled from 22% → 40.3%.
    • Rural women employment increased by 96%, Urban increase by 43%.
    • Female self-employment grew from 51.9% → 67.4%.
    • 1.56 crore women joined the formal workforce and 16+ crore registered on e-Shram.
    • Women-led MSMEs doubled and 68% Mudra loans went to women.
    • Gender budget increased by 429% in the last decade.
    • Nearly 50% of startups have women directors.
  • Sectors of Employment
    • Agriculture:
      • Largest employer of women (~65%).
      • Many work as unpaid family laborers or in low-paid positions.
    • Manufacturing & Industry: Low participation, mainly in informal, small-scale industries.
    • Services: Rising involvement in education, health care, and retail, but overall share still small.
  • Formal vs Informal Sector
    • Over 90% of working women are in the informal sector, lacking job security, social security, or regular wages.
    • Limited representation in formal salaried jobs and corporate leadership.
  • Leadership  and Representation
    • Women hold only around 17–20% of senior leadership roles in major companies.
    • Board participation is improving slowly due to legal mandates but remains low.
  • Challenges:
    • Strong social and cultural norms restrict women’s mobility and choices.
    • Heavy unpaid domestic workload and care responsibilities.
    • Lack of safe, inclusive, and supportive workplaces.
    • Persistent gender wage gaps and limited opportunities for advancement.
    • Part of the increase in participation due to reclassification of unpaid work, not actual job creation.
  • Policy and Institutional Support
    • Government schemes like MGNREGA, Kudumbashree, and MUDRA promote rural and self-employment.
    • NGO initiatives like SEWA support informal sector women through microfinance and training.
    • Corporate and digital upskilling initiatives (e.g., DigiPivot, Google-ISB programs) to enable workforce re-entry.