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The Economic Advisory Council to the Prime Minister (EAC-PM) recently released a working paper revealing critical insights into the trends of female Labour Force Participation Rate (LFPR) in India from 2017-18 to 2022-23. The report highlights an overall increase in female LFPR, with rural areas experiencing more significant growth compared to urban areas. This article delves into the key findings, regional disparities, influencing factors, and government initiatives aimed at promoting female workforce participation.

Key Findings on Female LFPR

The period between 2017-18 and 2022-23 witnessed a notable rise in female LFPR, both in rural and urban regions, though rural areas saw higher gains.

Rural female LFPR surged by approximately 69%, from 24.6% to 41.5%, while urban female LFPR increased from 20.4% to 25.4%. This consistent growth was observed even after excluding unpaid family workers or household helpers, reinforcing the long-term trend of increased female workforce participation across India.

However, a significant point of discussion in the report was the regional variations in female LFPR. States like Bihar, Punjab, and Haryana have consistently reported low female LFPR, which is noteworthy considering that Punjab and Haryana are among India's wealthiest states, while Bihar is the poorest. This regional disparity suggests that economic prosperity does not automatically translate into higher female labour force participation, highlighting deeper socio-cultural and structural barriers.

Regional Disparities in Female LFPR

The report emphasizes the persistent challenges in northern and eastern India. Punjab and Haryana, despite their affluence, have struggled with low female LFPR. Cultural and societal norms in these regions may contribute to the underrepresentation of women in the workforce, particularly in rural areas where traditional gender roles are more entrenched.

On the other hand, Bihar, the poorest state in India, had the lowest female LFPR in the country, particularly in rural areas. However, there has been a significant improvement in recent years, especially among rural married women. This indicates a slow but positive shift in attitudes towards female employment in these states.

In contrast, northeastern states such as Nagaland and Arunachal Pradesh have shown significant improvements in female LFPR, particularly in rural areas. These states have demonstrated that regional and cultural factors can also create conducive environments for female workforce participation.

Demographic Factors Affecting Female LFPR

Several demographic patterns influence female LFPR, including marital status and age. The report notes that married men consistently exhibit higher LFPR compared to women. Marriage, however, has a detrimental impact on female LFPR, particularly in urban areas, where women often face greater familial and societal pressures to prioritize domestic responsibilities over formal employment.

Age dynamics also play a crucial role in female LFPR trends. The data reveals a bell-shaped curve for female participation, peaking around the age of 30-40 years and sharply declining thereafter. This is in stark contrast to male LFPR, which remains almost universally high between the ages of 30-50 before gradually declining. These trends underscore the challenges women face in sustaining their participation in the workforce due to familial responsibilities, especially after marriage and childbirth.

Government Initiatives and the Rise in Female LFPR

The government's focus on women-led development is evident through various schemes aimed at increasing female workforce participation. Programs like Mudra Loans, the Drone Didi Scheme, and the Deendayal Antyodaya Yojana have been particularly instrumental in empowering women, especially in rural areas. These initiatives provide women with access to financial resources, skill development opportunities, and avenues for entrepreneurship, all of which contribute to the rise in female LFPR.

The EAC-PM's analysis acknowledges the positive impact of these government schemes, but it also stresses the need for further research to evaluate their long-term effectiveness. While the descriptive analysis highlights a substantial increase in female LFPR between 2017-18 and 2022-23, especially in rural areas, there remains a need for continuous monitoring and assessment of these schemes to ensure their sustained impact.

Conclusion: A Positive Shift, but Challenges Remain

The increase in female LFPR across India from 2017-18 to 2022-23 signals a positive shift in employment trends, particularly in rural areas. However, regional disparities, societal norms, and demographic factors continue to pose challenges. The rise in female LFPR is encouraging, but it is essential to understand the deeper socio-economic factors that shape women's participation in the workforce.

Government schemes have contributed to this growth, but future research is necessary to gauge their long-term effects and ensure that women’s participation in the workforce is not just a short-term trend. It is crucial that the government continues to refine policies that support women in overcoming socio-cultural and economic barriers, especially in less prosperous states like Bihar, Punjab, and Haryana. Sustained efforts, including education, skill development, and gender-sensitive policies, will be key to ensuring that the rise in female LFPR is both inclusive and long-lasting.

The analysis by the EAC-PM provides an essential framework for policymakers to design more targeted interventions to address regional disparities and create a more inclusive labor market for women in India.