Government’s Move to Increase Female Labour Force Participation

The Indian government is planning to release a national policy document focused on improving female labour force participation (FLFP). This policy initiative comes after findings from a World Bank report, which highlighted a significant drop in female employment rates post-marriage. The government aims to address this issue by improving the care economy and creating an enabling environment for women to participate more actively in the workforce.

What is the Care Economy?

• The care economy refers to a sector that involves both paid and unpaid care activities.
• These include direct care activities like feeding babies, as well as indirect care such as cooking, cleaning, healthcare, and education.
• The government’s policy will focus on developing this sector to create a more supportive environment for women, especially those who face barriers due to caregiving responsibilities.
• Why is This Important? A major concern is that married women in India face a sharp drop in labour force participation. The World Bank report reveals that after marriage, women’s employment rates drop by 12 percentage points, which is about one-third of their pre-marital employment rate. This drop happens even when women do not have children, indicating that marriage itself is a major factor in reducing female participation in the workforce.
• Existing Schemes to Support Female Workers: The Ministry of Women and Child Development already runs the ‘Palna’ scheme, which provides daycare facilities for the children of working parents.
• The scheme is aimed at children aged 6 months to 6 years and provides various services, including:
  • Nutritional support
  • Health monitoring
  • Cognitive development
  • Immunisation
  • Education
• As of now, 1,000 Anganwadi creches have been operational under this scheme. These creches aim to create a safe environment for children, allowing women to participate in the labour market without worrying about their children’s wellbeing.

Rural vs Urban Female Labour Force Participation

• Women’s participation in India’s workforce has seen a remarkable rise in recent years, according to the latest Annual Periodic Labour Force Survey (PLFS) reports.
  • The Worker Population Ratio (WPR) and Labour Force Participation Rate (LFPR) for women aged 15 years and above have steadily increased from 22.0% and 23.3% respectively in 2017-18 to 40.3% and 41.7% in 2023-24.
• According to the Union Labour Ministry data for 2021-2022, the female labour force participation rate is higher in rural areas compared to urban areas. The data shows:
  • In rural areas, 6% of women aged 15 years and above are part of the labour force.
  • In urban areas, this figure is much lower at 8%.
• This difference suggests that women in rural areas are more likely to be involved in economic activities, although these jobs may often be informal or low-paying.
• This disparity also highlights the need for more structured support systems, especially in urban areas, where women face different challenges related to employment.