Why is it in the News?

• With the high percentage of married women in the working-age population, there is growing concern about the economic impact of their non-participation in India's workforce.
• Women who work have better economic opportunities and more household decision-making authority.
• The work of Nobel laureate Claudia Goldin draws attention to differences in women's employment outcomes.

What is the Labour Force Participation Rate (LFPR)?

• The Labour Force Participation Rate (LFPR) is an important indicator in labor market studies because it represents the proportion of a country's working-age population that is either employed or actively looking for work.
• The female labor force participation rate (FLFPR) is the percentage of working-age women who are currently employed or looking for work.

Data on Women’s Labour Participation:

• In 2022, the global LFPR for women was 47.3%.
• Women's LFPR decreased in developing nations;
• For example, in India it fell from 28% in 1990 to 24% in 2022.
• Based on data from India's NSSO Periodic Labour Force Survey (PLFS) for individuals aged 25 to 49, the following trends have been noted::
• Compared to the Usual Principal and Subsidiary Status (UPSS) status, married women exhibit a significantly lower employment proportion under the Usual Principal Status (UPS) status.
• Marriage has a significant impact on women's labor-force outcomes.
• The female labor force participation rate (FLFPR) among married women between the ages of 25 and 49 decreased by 5% in 2022–2023.
• The FLFPR for this group decreased to 45% in 2022–2023 from 50% in 2004–05.
• Most of the FLFPR decline is concentrated in the 25–29 age range.

What is the Periodic Labour Force Survey?

• The Periodic Labour Force Survey (PLFS) was introduced by the NSO in April 2017 in response to the growing need for labor force data to be available at more frequent intervals.
• PLFS aims to accomplish two main goals:
• to estimate, for the urban areas only in the CWS, the major employment and unemployment indicators (i.e., the worker population ratio, labor force participation rate, and unemployment rate) in a brief period of three months.
• to annually estimate the indicators of employment and unemployment in both CWS and usual Status in both rural and urban areas.

What is NSSO?

• The National Sample Survey Office (NSSO) is an organization within the Government of India's Ministry of Statistics and Programme Implementation.
• It is in charge of carrying out extensive nationwide sample surveys on a range of socioeconomic topics.
• The NSSO was established in 1950 to meet the data needs of post-independence India.
• The National Sample Survey (NSS) Commission, which is composed of state officials, academics, and subject-matter experts, provides overall direction for the organization's operations.
• Regular "rounds" of surveys are carried out by the NSSO, and they typically last for a year. These rounds are usually named after the year they begin, such as "68th round" or "75th round."
• In 2019, the NSSO merged with the Central Statistics Office (CSO) to form the National Statistical Office (NSO) in order to streamline and consolidate the country's statistical system.

What is the reason behind the decline/low participation rate of women in labor force?

• Movement of Production: According to economist Claudia Goldin (1994), adult women's LFPR shows a U-shaped pattern during periods of economic expansion.
• She also mentioned that the shift in production from the family farm, small business, and home to the larger market is the reason for the initial drop in the participation rate.
• Marriage Issues: When married women indicate a desire to enter the workforce, the problem gets worse.
• Women's LFPR tends to decline after marriage for a variety of reasons.
• When comparing the Usual Principal Status (UPS) to the Usual Principal and Subsidiary Status (UPSS), married women exhibit a significantly lower employment proportion, according to the PLFS data (25 to 49 years).
• The age range of 25 to 29 is where the majority of the decline in the female LFPR is found.

What are the Problems Faced by Married Women?

• Growing Family Obligations: Due to women's lower educational attainment and restricted mobility, there is a growing social disapproval of women working outside the home, which in turn leads to an increase in family obligations.
• Marriage Increases Domestic Responsibilities: In addition to increasing women's domestic responsibilities, the institution of marriage places numerous social and cultural constraints on them that limit their ability to engage in the workforce.
• Social Elements: Women's limited labor participation is also influenced by a number of other societal factors, including their location and affiliations with particular castes and religions.
• The level of wealth in their home and the social norms that are in place regarding women working outside the home also influence how many women enter the workforce.

Other challenges faced by married women:

• When women choose to return to the workforce after marriage, they typically show a preference for jobs that are located close to their homes and provide more flexibility.
• Due to a number of social restrictions, women also face gender-asymmetrical professional costs.
• It causes gender differences in decisions about fertility, age at marriage, income inequality, and premarital career choices.
• It has been noted that women in higher social classes typically fulfill home duties in order to conform to strict social norms.
• Women from lower socioeconomic classes are more likely to work, mainly due to financial limitations brought on by poverty.
• When compared to their more educated counterparts, women who are illiterate are more likely to enter the workforce following marriage.
• According to empirical research on the distribution of female labor across various industry sectors in India, the agricultural sector continues to be the most popular choice for women seeking employment.

What can be solutions to promote greater participation of married women in the labour market?

• Offering Child Care Services: By helping women handle their caregiving duties, this program will allow them to dedicate enough time to gainful employment.
• It is also crucial to invest in the establishment of childcare services in office buildings through cooperative models and in industrial corridors with industry associations.
• Public crèches can be run in worksite clusters like labor nakas, close to markets, industrial areas, and densely populated low-income residential areas.
• Additionally, the establishment of work environments that give precedence to the requirements and welfare of female employees, the supply of safe modes of transportation, and the growth of opportunities for part-time employment would function as inducers for increased female participation in the Indian labor market.

Government Initiatives to increase female labor participation rate:

The government has targeted the issue by taking various prominent steps to increase the female labour participation rate which includes:

• Enactment of the Maternity Benefit (Amendment) Act, 2017 which provides for enhancement in paid maternity leave from 12 weeks to 26 weeks.
• Provisions for mandatory crèche facility in establishments having 50 or more employees.
• Issue of an advisory to the States under the Factories Act, 1948 for permitting women workers in the night shifts with adequate safety measures.

Conclusion

• Married women's lower participation in the labor force and their propensity to leave the workforce after marriage are caused by a variety of factors.
• In light of this, it is critical to consider appropriate strategies for advancing women's empowerment during this period of rapid economic expansion.
• Empowering women in the workforce is not only economically necessary, but also a crucial first step toward achieving gender equality and inclusive economic growth.