Focus on Female Employment to Counter Unemployment
July 22, 2024

Context

  • The difficulty in getting jobs and inflation were the two major issues that played a role in the results of the Lok Sabha Elections 2024.
  • The India Employment Report (IER) 2024 also showed a rise in the unemployment rate from a little more than 2% in 2000 and 2012 to 5.8% in 2019 and unemployment reduced somewhat to 4.1% in 2022,
  • However, time-related underemployment was high at 7.5% and considering these data points, it is important to explore how a better female labour force participation rate (LFPR) can improve overall family income and welfare, especially in rural India.

An Overview of Unemployment Trends and Labor Force Participation

  • The LFPR fell sharply from 61.6% in 2000 to 49.8% in 2018 but partially recovered to 55.2% by 2022, however, this recovery masks significant gender disparities.
  • Female labour force participation in rural India exhibited a substantial increase from 24.6% in 2018 to 36.6% in 2022, with urban areas seeing a modest rise of around 3.5% from 20.4% in 2018.
  • In contrast, male LFPR showed only marginal improvement in rural areas and stagnated in urban settings.
  • Despite this positive trend, female LFPR in India remains low compared to the global average of 53.4% in 2019 and has declined from 38.9% in 2000 to 23.3% in 2018.

An Analysis of Gendered Employment Choices and Challenges and Emerging Trends

  • Unpaid Family Labor and Gender Imbalance
    • One of the most striking aspects of the employment landscape is the high proportion of women engaged in unpaid family labour.
      • In 2022, 36.5% of women worked as unpaid family labourers, compared to just 9.3% of men.
      • This disparity is even more pronounced in rural areas, where the difference stands at 31.4%, compared to only 8.1% in urban areas.
      • The predominance of women in unpaid labour reflects both a lack of formal employment opportunities and entrenched gender norms that position women primarily within the domestic sphere.
      • Unpaid family labour, although crucial to household functioning, does not contribute to formal economic metrics or provide financial independence.
      • This situation limits women’s economic mobility and perpetuates a cycle of dependency and undervaluation of their work.
  • The Preference for Traditional Occupations
    • The preference for traditional, home-based occupations among women, as observed in studies conducted in Gujarat, underscores the complex interplay between gender norms and employment choices.
    • Women often opt for traditional activities such as bandhani, embroidery, and fall beading due to their flexibility and compatibility with household responsibilities.
    • These roles, however, typically offer lower income compared to other employment options.
  • The Lack of Alternative Opportunities
    • The lack of alternative opportunities forces many women to remain in these traditional roles.
    • The constraints faced by women in urban areas, such as limited access to capital and restrictive social norms, further aggravate this issue.
    • In urban settings, women encounter challenges in entering and succeeding in various professional fields due to a combination of inadequate job opportunities and societal barriers.

Emerging Trends in Female Labour Force Participation

  • Recent trends reveal a positive shift in female labour force participation, particularly in rural areas. From 2018 to 2022, female LFPR in rural India increased from 24.6% to 36.6%.
  • This rise suggests that there is a growing recognition of women’s potential as active contributors to the economy.
  • However, despite this progress, the overall female LFPR remains low compared to the global average and has historically declined from 38.9% in 2000 to 23.3% in 2018.
  • The rise in rural LFPR could be attributed to several factors, including targeted employment schemes, improvements in local economic conditions, and increased awareness of women's rights and opportunities.
  • This trend presents a critical opportunity for further development, as rural areas often have untapped potential for expanding employment opportunities.

Case Studies and Field Observations Surrounding Female Labour Force Participation

  • Upper Gangetic Plains of Uttarakhand and UP
    • A study in the Upper Gangetic Plains of Uttarakhand and Uttar Pradesh explored the relationship between irrigation sources and women’s empowerment.
    • The research highlighted that the type of irrigation infrastructure significantly influenced women's employment opportunities and decision-making abilities.
    • The study revealed that women's wages and their role in decision-making improved with the expansion of less dominant irrigation sources, such as canal irrigation.
    • When canal irrigation expanded, especially during the Ziad (summer slump season), women’s involvement in agricultural work increased because males showed less interest during this period.
    • The availability of alternative irrigation sources allowed women to engage more effectively in farm labour, which, in turn, enhanced their decision-making capabilities and economic standing.
    • This shift demonstrated how infrastructure development can facilitate gender equity in economic roles.
  • West Bengal's Minor Irrigation Projects and Kolkata Slums Study
    • Field observations in West Bengal, supported by the West Bengal Accelerated Development of Minor Irrigation Project, highlight the transformative impact of water resource development on women's employment and family welfare.
    • With the introduction of water through ponds and tube wells in arid and mono cropped regions, women in West Bengal initiated various economic activities, including farming, pisciculture, nursery cultivation, and vermicomposting.
    • These activities significantly improved their economic status and reduced migration, which had been previously necessary for accessing work.
    • A study conducted in the slums of Kolkata provides insight into how women’s participation in the workforce can enhance economic resilience and reduce vulnerability.
    • Women’s involvement in various income-generating activities proved critical during the COVID-19 pandemic.
    • Their participation helped to reduce economic vulnerability and improve resilience against the financial impacts of the pandemic.

Strategies for Female Employment Generation

  • Empowering Self-Help Groups
    • To capitalise on the increasing female LFPR, especially in rural areas, it is essential to collectivise women under self-help groups (SHGs) and federations.
    • These groups can provide training in new skills and link women directly to markets for better economic returns.
    • The Kutch Mahila Vikas Sangathan (KMVS), a local non-profit organisation, exemplifies efforts to support women in traditional occupations through such collectivisation.
  • Encouraging Women to Enter Male-Dominated Workspace
    • Traditional occupations align with societal gender norms and enable women to manage both household duties and earnings.
    • However, these roles may not challenge regressive gender norms. Empowering women through employment outside their homes can enhance their agency and meet strategic gender needs.
    • Encouraging women to enter male-dominated workspaces can be achieved by generating new employment opportunities in underexplored areas.
  • Creating Formal Employment Opportunities and Supporting Female Entrepreneurship
    • Developing new job opportunities that cater to women's skills and preferences is
    • This includes expanding vocational training programs and supporting sectors with high potential for female employment.
    • Providing women with access to capital, training, and mentorship can help them start and grow their own businesses.
    • Initiatives such as microfinance programs and business development support can empower women to become entrepreneurs.

Conclusion

  • The rising female LFPR in India, particularly in rural areas, presents a promising avenue for addressing unemployment and underemployment.
  • Strategic efforts to create appropriate employment opportunities, improve working conditions, and empower women through collectivisation and market access are crucial.
  • By focusing on these areas, India can enhance overall employment, family income, and women's position in society, driving forward both economic and social development.