Female Labor Force Participation in India: Challenges and Opportunities

In India, the participation of women in the labor force has been a concern for many years. According to the study, India’s female labor force participation rate stood at 21.2% in 2020, significantly lower than the global average of 47.3%.

Women’s Labour Force Participation Rate (LFPR) shows an increasing trend as per the annual PLFS reports. Continue reading to explore the factors affecting female labor force participation in India, the consequences of low participation, and the government initiatives and successful case studies promoting female entrepreneurship.

India, known for its rich cultural heritage and diversity, continues to cope with challenges in achieving gender equality, particularly regarding female labor force participation. Despite notable progress in several sectors, the full potential of women's economic participation remains untapped.

Factors Affecting Female Labor Force Participation in India

Understand some factors by reading the below-mentioned pointers that affect female labor force participation. By identifying and addressing these factors, India can strive towards empowering women and harnessing their immense talent and potential to benefit the nation as a whole.

• Cultural and Societal Norms

  In India, there is a prevalent belief that a woman's primary responsibility is to take care of her family and home. This cultural norm often leads to a lack of support for women who want to work outside, including limited access to education and training and a lack of suitable job opportunities. Additionally, women who do enter the labor force may face discrimination and harassment in the workplace.

• Limited Access to Education and Training

  Access to education and training is critical in determining women's ability to enter the labor force. In India, girls are often discouraged from pursuing education beyond the primary level, and many families prioritize education for boys over girls. This can limit women's ability to acquire the skills and knowledge needed to succeed in the labor force.

• Lack of Suitable Job Opportunities

  Many jobs in India require physical labor or long hours, which can be difficult for women responsible for household work. Additionally, many jobs are concentrated in male-dominated industries, which can be intimidating for women. Women may also face discrimination in hiring and promotion, which limits their opportunities for advancement.

• Lack of Support for Women Who Want to Work Outside the Home

  Women who want to work outside the home may lack support from their families and communities. This can include a lack of access to childcare, limited opportunities for flexible work arrangements, and social stigma associated with women who work outside the home. As a result, women may be forced to choose between their family responsibilities and career aspirations.

• Lack of Affordable and Reliable Childcare Options

  One of the most significant barriers to women's labor force participation in India is the lack of affordable and reliable childcare options. Women who work outside the home often have to rely on family members or informal childcare arrangements, which can be unreliable and limit their ability to work full-time. Formal childcare options such as daycare centers are often expensive and inaccessible for many women.

Consequences of Low Female Labor Force Participation for large employers

The low female labor force participation rate in India has significant consequences for large employers. Here are 5 consequences of low female labor force participation for large employers in India:

• Reduced Access to Talent

  With fewer women in the labor force, large employers in India may need help finding and attracting qualified candidates for open positions. This can limit their ability to grow and expand their business.

• Limited Diversity and Inclusion

  A low female labor force participation rate can also limit the diversity and inclusion of the workforce. Companies with a more diverse and inclusive workforce tend to have better business outcomes and higher levels of innovation.

• Increased Employee Turnover

  When women leave the workforce to take care of family responsibilities, it can increase employee turnover for large employers. This can be particularly challenging for companies that invest heavily in the training and development of their employees.

• Higher Costs of Absenteeism and Presenteeism

  Women who struggle to balance work and family responsibilities may have higher rates of absenteeism and presenteeism, which can result in higher costs for large employers. Absenteeism refers to an employee's absence from work due to personal or family issues. In contrast, presenteeism refers to employees who are present at work but not fully engaged due to personal or family problems.

• Reduced Productivity

  When women cannot participate fully in the labor force, it can reduce productivity for large employers. This can be particularly challenging for industries that require a high degree of skill and expertise.

Government Initiatives to Promote Female Labor Force Participation

• Financial Incentives for Employers Who Hire Women

  The government offers financial incentives, such as tax benefits or subsidies, to encourage employers to hire and promote women, promoting gender diversity in the workforce.

• Entrepreneurship Programs for Women

  Specialized programs provide training, mentoring, and funding opportunities to support women entrepreneurs in starting and expanding their businesses and fostering economic empowerment.

• Maternity Benefit Program

  This program ensures paid leave, healthcare support, and job protection for pregnant women, enabling them to balance work and motherhood without compromising their career prospects.

• Support for Child Care

  The government supports childcare facilities, including establishing affordable and accessible daycare centers, relieving working women of childcare responsibilities, and facilitating employment.

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Content Source: PIB Finance, PIB Labour