India Has A Mirage Of Rising Female Workforce | The Reason Why

This year, my wife and I finally checked off a dream trip to Peru. From the deserts of Paracas to the wonders of Machu Picchu, and from the quiet charm of Arequipa to the hidden gems in the Sacred Valley – it was stunning in every sense. But one thing stood out even more than the scenery: women were an ordinary, visible part of everyday work life.

They ran shops, worked in hotels, served at tables, commuted to offices during the morning rush and even ate lunch alone at menú del día cafés on weekdays. You could see them everywhere – on the streets, in the shops, in the banks – confident and managing things all by themselves.

It struck us because back home in India, that kind of everyday visibility is still rare. Outside a few pockets — domestic work, street vending, or crowded transits — women simply aren’t as present in public workspaces.

That contrast captures India’s female labour force puzzle perfectly. It’s not that Indian women don’t want to work or cannot work. It’s that the economy doesn’t create enough visible, safe, and suitable jobs for them to do so.

Before getting into the analysis, a bit of housekeeping is necessary—starting with the data itself. Female labour force participation in India is best tracked using the Periodic Labour Force Survey (PLFS), introduced in 2017–18, which provides frequent and detailed employment data.

Earlier estimates relied on less frequent National Sample Survey (NSS) rounds, conducted about every five years. The PLFS publishes multiple series – annual, quarterly and monthly. Also, we get data for all ages as well as those above 15 years. Then, we also get the data for villages, cities and combined.

There are two categories in the data: i) usual status – mostly released during annual, which reflects stable, long-term employment, ii) current weekly status – released during quarterly and monthly series, which are more sensitive to short-term and informal work.

For tracking structural change, the annual usual-status series for those aged 15 and above is the most appropriate benchmark, and we will use that for our analysis.

By that measure, women’s labour force participation rose sharply from 23.3% in 2017–18 to 41.7% in 2023–24 (the latest available), driven largely by rural areas. More recent monthly and quarterly data suggest participation has stabilised around the mid-30% range. Getting this right is important as using different data series interchangeably can distort the picture. That said, India is still far behind even developing countries in this metric.

The data reveals a clear divergence between rural and urban India. In 2017–18, female labour force participation was already higher in villages than in cities. Since then, participation has risen in both regions—but the increase has been far stronger in rural India. By 2023–24, nearly half of all rural women were counted as part of the labour force, while urban participation remained below one-third.

Most of the increase in participation rate came from:

·       unpaid family work, working as domestic help or maid

·       low-income self-employment

·       a growing return to agriculture

This matters because it reverses a long-term trend. Over several decades, rural women had gradually been moving out of agriculture. For instance, the share of rural women in agriculture fell from 88% in 1977–78, 75% by 2011–12, 73% in 2017-18, but rose to 77% in 2023-24. The recent rise in agricultural jobs signals a problem, not a structural transition.

The cities show a similar story, but less dramatic. This shows us that although overall women’s participation has risen, job quality has deteriorated, thus impacting their incomes and job security.

Out of every 100 working women in India, only about 16 have regular salaried jobs. Of these, less than half (around 7) have a formal contract, around 11 get paid leave, and roughly 7 enjoy any social security benefits.

Men fare slightly better: 25 out of 100 have regular jobs, of which around 10 have a contract, 13 receive paid leave, and 12 get social security. The takeaway: while both men and women face issues, women are far more likely to be pushed into low-paid, informal, or unpaid roles.

Because much of the available work offers low pay, poor security, and minimal benefits, women are often forced out of the labour force.

Cultural and social pressures can influence these decisions, but the evidence is clear: the low female participation rate is not about women choosing leisure. It is about a chronic shortage of suitable jobs, especially outside agriculture. If we cannot create meaningful opportunities for women, we cannot become vishwaguru even in 2100.

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