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Female labour force participation: Trends before and after Covid-19

The year 2020 dawned with a global health crisis—the Covid-19 virus—that brought with it devastating socio-economic impacts, exposing and to some extent, deepening persistent inequalities. Women—who are often placed at the receiving end of the stick—have thus been pushed to shoulder much of the disproportionate burden of the pandemic. There are in fact, large bodies […]

The year 2020 dawned with a global health crisis—the Covid-19 virus—that brought with it devastating socio-economic impacts, exposing and to some extent, deepening persistent inequalities. Women—who are often placed at the receiving end of the stick—have thus been pushed to shoulder much of the disproportionate burden of the pandemic. There are in fact, large bodies of studies indicating that the pandemic has posed immense challenges to the lives of the working women in India.

According to a report published by the World Bank, the number of working women in India dropped from 26% to 19% between 2010 and 2020 with some economists projecting that the female employment will only plummet further to 9% by 2022. In March this year, estimates released by the World Bank showed that India has one of the lowest female labour force participation rates (FLFPR) in the world with less than a third of women, defined as 15 years or older, working or actively looking for a job.

It is, however, important to note here that even before the pandemic, FLFPR has been witnessing a steady decline across the world, falling from 51% in 1970 to 48% in 2018 and then to 46% in 2020. Thus, to say that India has done little to include women in the country’s economic growth is being too cynical, turning a blind eye to significant realities that surround the situation.

This is because, although India’s FLFPR—coinciding with the global FLFPR—has been seeing a downturn, plunging from 31.59% in 1983 to an all time low of 23.3% (15 years and above in usual status) during 2017, in reality, it has been experiencing a ‘U’ shaped recovery in succeeding years, growing to 24.5% in 2018-2019 and then to 30% in 2019-2020. Besides, the recent Periodic Labour force Survey (PLFS) annual report for July 2020-June 2021 suggests that the all-India FLFPR in usual status has experienced a 2.5% increase, rising to 32.5% in 2021 despite the pandemic.

In fact, at present, only one Indian state and one India Union Territory (UT)—Bihar (10.7%) and Delhi (13.8%)—out of 28 states and 8 UTs have FLFPR (in usual status for 15 years and above) that is lesser than 15%. This is a stark improvement from 2017-2018 where at least 7 States/UTs—Arunachal Pradesh, Assam, Bihar, Delhi, Haryana, Tripura and Uttar Pradesh— had a FLFPR, which stood below 15%.

Looking at these statistics, it is safe to infer that despite the global, regional, and national challenges, India’s FLFPR has steadily been advancing. And this would not have been possible without the consistent efforts and policy measures undertaken by the Government of India. The PM Modi government has in fact, prioritized job creation from the very beginning and has implemented various Centrally Sponsored schemes to enhance employment opportunities for women through Mahatma Gandhi National Rural Employment Guarantee Scheme, Deendayal Antyoday Yojana-National Rural Livelihood Mission, Deendayal Upadhyay-Gramin Kaushalya Yojana, Pradhan Mantri Gram Sadak Yojana, etc.

To help and empower women entrepreneurs, the government also launched several initiatives

such as Bharathiya Mahila Bank Business Loan, Mudra Yojana Scheme, Dena Shakti Scheme, Udyogini Scheme, Cent Kalyani Scheme, Women Entrepreneurship Platform (WEP), etc.

The benefits of these schemes—majority of which are being implemented at the rural level—can once against been seen in terms of the growing numbers of women in the rural labour workforce. As per the PLFS data, FLFPR in usual status (15 years and above) in rural India has increased from 24.6% in 2017-2018 to 26.4% in 2018-2019 to 33% in 2019-20 to 36.5% in 2020-21.

The GoI has also taken a step forward to break cultural barriers by recently announcing its plans to raise the minimum marriageable age for women from 18 years to 21 years. This decision could in fact, free women from the pressure of marrying at early age, encouraging them to pursue higher education as well as a professional career in turn improving India’s FLFPR.

Thus, efforts to bring more and more women in the labour force are being made at all levels but one needs to remember that changes are slow to come. And until we are fully there, a timely appreciation of what has been achieved by the country needs to be consciously put forward.

(Akanksha Khullar is an Assistant Manager, Strategic Investment Research Unit at Invest India. Her work predominantly focuses on gender issues.)

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