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ARTHA

An examination of employment trends since 1990 Several explanations have been proposed for the
reveals a gradual decline, or, at best stagnation, in male persistently low female LFPR in India, including the
labour force participation, contrasted by a puzzling following:
decline and only a recent, modest recovery in female
participation. According to the PLFS 2023–24, the • As household incomes rise, women in certain income
Female Labour Force Participation Rate (FLFPR) is groups tend to withdraw from paid employment, often
estimated at 41.7 per cent, compared to 78.8 per cent prioritising domestic responsibilities - known as the
for males. Notably, much of the recent increase in “U-shaped” hypothesis of female labour supply.
female LFPR has been driven by the rural sector,
particularly through self-employment and unpaid family • Higher enrolment of women in secondary and tertiary
work which is a result of distress employment. Despite education delays, or in some cases reduces, their entry
sustained economic growth and targeted policy into the labour force.
interventions, significant gender gaps in labour force
participation continue to persist, underscoring the • Many women engaged in unpaid domestic or care work
structural and social barriers that constrain women’s are not actively seeking employment and are therefore
engagement in the workforce.
excluded from official labour force statistics, thus
To ensure cross-country comparability in the subsequent reducing the FLFPR.
analysis, this paper relies on the World Bank’s World
Development Indicators (WDI) database, for which the • Deep-rooted social norms, safety concerns, caregiving
latest harmonised data are available up to 2024. The responsibilities, and limited access to or lack of
source of this data is ILO Modelled Estimates database employment opportunities continue to constrain
(ILOEST), International Labour Organization (ILO). women’s participation in paid work.

The decline in male LFPR has been modest but
persistent over the past three decades. Part of this
decline can be attributed to longer periods spent in
education, higher enrolment in tertiary studies, and India’s labour market continues to
delayed entry into the labour market. Nevertheless, reflect a deep gender divide, with
male participation at 77.59 per cent remains female participation remaining far
significantly higher than female participation at 32.42 below that of men despite rising
per cent, leaving the gender gap in the labour force both per capita incomes
wide and enduring.

Figure 1: Strong Gender Gap Persists in LFPR in India

100.0 12,000
84.0 83.9 84.3 82.4
79.7 78.0 77.6
80.0 75.7 10,000
8,000
60.0
6,000
40.0 30.3 31.3 34.4 34.9 28.4 26.6 26.0 32.4 4,000

20.0 2,000
2,203 2,542 3,100 3,882 5,059 6,488 7,400 9,818

0.0
1990 1995 2000 2005 2010 2015 2020 2024

GDP per capita - Constant$ PPP (RHS) Female LFPR (LHS) Male LFPR (LHS)

Source: World Development Indicators, World Bank 1

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