Women’s participation in labour force continues to be higher in rural areas: report

Women’s participation in the labour force in the rural areas of India continues to be higher than their participation in urban areas. 

According to a report by the Institute for What Works to Advance Gender Equality (IWWAGE)–an initiative of LEAD, an action-oriented research centre of IFMR Society; and The Quantum Hub, a New-Delhi based policy research and communications firm, female labour force participation rate was 41.5% in rural areas, 25.4% in urban areas, and 37% overall in 2022-2023. 

Labour force participation among women over the age of 15 has increased from 36.6% in 2021-22 in rural India and 23.8% in urban India. 

The report titled ‘Women and Work 2023-Looking Ahead Towards Women-Led Sustainable Development’ captures women’s participation in diverse areas within the broader macro-political and economic landscape and delineates specific challenges and opportunities that came up last year. 

Preethi Rao, Director, Partnership and Outreach, LEAD at Krea University, points out that IWWAGE’s national study on female labour force participation reveals that there are persistent gaps in the skilling ecosystem, mobility planning, and workplace and household infrastructure, and institutional bias and norms. These need to be addressed systematically, she urges. 

According to the report, economic and social empowerment saw an increase in self-employed female workers (2020-2023), especially in rural areas. 

The India Working Survey 2023, which was part of the study, reports a discrepancy in labour force reporting: 70% of women vs 64% of their husbands, and a rise in rural women’s workforce participation from 26% before marriage to 49% in the first five years of marriage.

Sectoral highlights 

Sectoral insights showed a 5.8% increase in Employees’ Provident Fund registration (2022-23) with only a quarter being women, indicating more informal job opportunities and lower wage growth. 

Women’s participation in agriculture rose from 48.2% (2022) to 48.4% (2023), while it decreased in other sectors, with the construction industry seeing the highest drop at 1.4%.

Women in entrepreneurship 

Women’s entrepreneurship was notable, with over 86,000 startups recognised by the Department for Promotion of Industry and Internal Trade, and 46% of them having at least one woman director. 

The Ministry of Micro, Small and Medium Enterprises supported women entrepreneurs through schemes like PMEGP (Prime Minister's Employment Generation Programme), with 38.3% of projects initiated by women in 2022-23, and PMMY (Pradhan Mantri MUDRA Yojana), with loans to women constituting nearly 48% of the total sanctioned value in 2022-23.

Gender inequality 

Bridging the digital gender divide remained a challenge. 

Women in tech comprised 29% of 4.6 million employees in 2023, with only 8% in leadership roles and earning 17% less than men. 

The Mobile Gender Gap Report 2023 revealed an 11% gap in mobile phone ownership and a 40% gap in mobile internet usage between men and women aged 18 and above.

Despite increased female enrollment in higher education, participation in professional and technical courses was low. Vocational training saw significant growth with nearly a 100% increase in ITI registrations since 2014, but female enrollment in technical courses was only 6.6%.

Gender inclusive climate action saw India ranked 12th on an index of climate risks among women engaged in agri-food systems. Initiatives like Jal Jeevan Mission and Pradhan Mantri Ujjwala Yojana have provided essential resources to women.

Securing women’s wellbeing faced challenges with increasing gender-based violence–26,574 cases were filed in 2023, a 3.9% annual rise. Women spent 192 minutes daily in caregiving, 75 minutes more than men, and Anganwadi Centres remained critical for the welfare of lactating mothers and children.

Forecast for 2024

Areas to watch out for in 2024 include the care economy with an increasing elderly population, renewable energy/green jobs driven by India’s 500-GW renewable energy goal by 2030, the booming gig economy with a 158% rise in female freelancers, and the microwork industry with flexible online employment for digitally skilled women.

With automation and AI requiring 40 million to 160 million women to transition to higher-skilled roles by 2030, there is a need for improved access to technology, digital literacy, and STEM education.

“Increasing women’s participation in the workforce would require an extensive effort to bring about change at the individual, enterprise, ecosystem and policy levels,” says Rao of LEAD, Krea University.

She also outlines key policy levers of change across several areas: 

Skilling: increasing awareness programmes, improving affordability, expanding existing programmes to align with aspirations, enhancing quality of training, strengthening post skilling placements, and offering more apprenticeships and on-the-job training opportunities

Mobility planning: improving last mile connectivity, availability of infrastructure, affordability, safety and comfort, and predictability to enable better planning

Workplace infrastructure: providing proper crèche facilities and toilet/wash facilities in appropriate locations

Household infrastructure: increasing availability and affordability of piped water and LPG

Bias and norms: role modelling, incentivising the private sector, providing reservations in the public sector, promoting non-traditional livelihoods

The Women and Work report concludes with a forward-looking approach to chart out potential areas of growth in the upcoming year. This is in line with the government’s Nari Shakti mission, which recognises women as a formidable force for the growth and development of the nation.