Women missing from India’s workforce

New Delhi: Women in both rural and urban India are missing in significant numbers from India’s labour force, according to the Economic Survey 2015-16. Even though the proportion of economically active population (15-59 years) increased from 57.7% to 63.3% during 1991-2013 (Sample Registration System data, 2013), “The Labor Force Participation Rate for women is significantly lower than that for males in both rural and urban areas,” according to the survey released on Friday.

The under-representation of women in India’s labour force has been a chronic problem. At 53 percentage points, India has one of the worst gender gaps (disproportionate difference between the sexes) in the world when it comes to labour force participation, World Bank data shows.

However, the Economic Survey pointed to the significant “hidden contribution” of women to the economy in the form of unpaid work. Women in India represent only 24% of the paid labour force, as against the global average of 40%, as per a recent McKinsey Global Institute report.

“The Time Use Survey being conducted in select states on a pilot basis has revealed the hidden contribution of women to the economy in the form of unpaid work. TUS is proposed to be extended to all states to design gender sensitive policies for employment and to make women’s work visible,” the survey noted.

The survey expressed concern on the low LFPR (labour force participation rate) among females, but applauded the “women achievers” in the financial sector. “The level of financial inclusion of women in terms of number of women with bank accounts still remains low in India. However, it is noteworthy that there are women achievers in the financial sector, with leading nationalized banks and financial institutions headed by women,” the Economic Survey said.