Why in news?
The Periodic Labour Force Survey (PLFS) 2023‑24 and other studies showed that, despite high literacy rates—especially in cities—the share of women participating in India’s workforce remains low. In July 2025 policy makers discussed how to close this gap, as official statistics revealed a widening divide between women’s education and their economic participation.
Key trends
- Literacy vs employment: Urban female literacy is about 85%, yet only around 28% of urban women are in the labour force. Nationally, women’s literacy is 74.6% with a 33‑point gap between literacy and employment.
- Rural–urban gap: The literacy‑participation gap is roughly 22% in rural areas but exceeds 55% in urban areas, highlighting stark differences in employment opportunities.
- Declining trend: Between 2005 and 2019 fertility rates fell and women’s education rose, yet female labour force participation declined—especially among urban middle‑class households.
Why participation is low
- Inflexible jobs: Urban service jobs rarely offer part‑time or flexible hours, making it difficult for women to balance work with family responsibilities.
- Mobility and safety: Unsafe public spaces and unreliable transport deter many women from commuting to workplaces.
- Informality and insecurity: A large share of urban women work in informal jobs with low pay and no benefits, leading to dropout after marriage or childbirth.
- Childcare deficit: Nuclear families in cities often lack affordable crèches; many mothers leave jobs to care for children.
- Post‑maternity penalty: Women returning after maternity leave face stigma and lack of re‑entry programmes, causing permanent exit from the workforce.
Why rural participation is higher
- Flexible work: Agricultural and self‑employment roles allow women to work near home with adaptable hours.
- Family support: Extended families and kinship networks provide shared childcare, enabling women to engage in farm or home‑based work.
- Earnings out of necessity: Economic compulsion rather than choice drives many rural women to work, even in low‑paid or unpaid roles.
- Norms around shared labour: Rural societies often accept women’s work as part of household survival, though this does not always translate to empowerment.
Implications
- Demographic dividend at risk: Under‑utilisation of half the population weakens productivity and long‑term growth.
- Social development slows: Low female employment limits progress in child health, nutrition and education.
- Economic competitiveness: India lags behind many emerging economies in inclusive growth, affecting global competitiveness.
- Gender equity: Economic exclusion reinforces patriarchal norms and denies women dignity and autonomy.
Way forward
- Expand childcare: Build more urban crèches and strengthen anganwadi centres to support working mothers.
- Flexible employment models: Encourage part‑time work, remote jobs and gig platforms that accommodate caregiving responsibilities.
- Legal safeguards: Enforce equal pay laws and the POSH Act (Prevention of Sexual Harassment) to make workplaces safe and respectful.
- Social campaigns: Promote shared caregiving roles through public messaging to challenge gender stereotypes.
- Inclusive urban infrastructure: Invest in safe transport, women‑friendly public spaces and workplace crèches to make cities more inclusive.
Raising women’s participation in the labour force requires both structural reforms and a shift in social attitudes. A gender‑inclusive economy is essential for India’s aspiration of becoming a $5 trillion economy.