What is the issue?

The female labour force participation rate (LFPR) has seen a sharp decline since amid-2000s when the economy was experiencing unprecedented economic growth.

What is the scenario of female employment?

• Generally in lower-middle-income countries, there exists a U-shaped relationship between national income and female LFPR.
• As women move out from agriculture it falls and then move upwards in the U when they acquire education and return to remunerative jobs.
• The Indian scenario possibly resembles the same U-pattern with LFPR declining over the period of high economic growth.
• As per survey conducted by NSSO, female LFPR is 22.5% with the decline more pronounced after 2004-05.
• In 2011–12, it is only 25.3% in rural and 15.5% in urban areas.
• The high LFPR in rural areas attributed to high unpaid family workers in agriculture and construction sector.
• Female LFPR in urban areas is half compared to their rural counterparts.
• This is a reflection of the fact that household incomes are higher in urban areas and poverty levels lower.
• Majority in the urban areas works in the service sector because of the education and growing opportunities.

What are the reasons for low participation?

Education of over-15 year olds – The demand for schooling has risen with rising per capita income.

• There was a significant increase in enrolment of girls in the age group below 15 years, as well as 15–19 years, after 2005.
• The net enrolment rate at primary level had risen to 97% by 2007, and there was complete gender parity at primary level enrolment.

Declining child labour among girls in the age group 6–14 years

• This is consistent with the fact that participation in education is increasing especially for girls.
• This was on account of significant government programmes focused on expansion of school access.

Changing domestic responsibilities with greater nuclearisation of families

• There is growing lack of support from other family members which constrained their LFPR even if they have the necessary qualification.
• As older girls entered the secondary school, the task of younger sibling care was taken by adult women – Increase in domestic duties.
• Fall in the total fertility rate (TFR) in the past 2-3 decades supports the marginal increase in female LFPR.

Increase in household income – The rise of commercial agriculture and of household income resulted in fall in poverty rate.

• This has increased the opportunity cost of domestic activities for women while that of paid labour of women decreases.
• In the Indian context, that women staying at home are often considered to reflecta rise in a family’s social status.
• The process of mechanisation in agriculture reduces the demand for labour,affecting the female workforce.
• Technology replaced number of activities earlier performed by women.

Decline in household-level animal farming due to decline in common property resources (reduction in grazing land)

• And also growing commercialisation in dairy sectors, it has become difficult for rural women to sustain these activities.
• Fall in Demand for Labour-intensive Products after the global economic crisis in 2008.
• Commodities manufactured by sectors having high concentration of female workforce had registered negative export growth.
• Mainly the service sector drove the economic growth and thus requires high skill that a majority of women do not posses.