Enhanced Female Workforce Participation in Economic Activity: Data Shows Improved Employment Indicators over Last Six Years
Enhanced Female Workforce Participation in Economic Activity: Data Shows Improved Employment Indicators over Last Six Years
Key Highlights: Data related to female employment indicators in last six years points to enhanced engagement of women in economic activity, declining unemployment rate, upward trend of educated women in workforce, and a steady increase in earnings across employment categories. A sharp rise in female labour force participation in rural areas stems from increased participation in economic activities.
The official data source of employment/unemployment indicators in India is the Periodic Labour Force Survey (PLFS) conducted by the Ministry of Statistics and Programme Implementation (MoSPI) since 2017-18. As can be seen from the PLFS data, Indian labour market indicators have improved in the last six years, as seen below:
An analysis of the PLFS data pertaining to female labour force in the country shows the following trends:
[Note: In this context, to further quote from Economic Survey 2023-24, the possibility of the rise in rural FLFPR stemming from distress does not hold much ground since distress-driven FLFPR should have peaked during COVID-19 and declined afterwards instead of continuously rising since 2017-18.]
At the same time, 23.9 percent of total women with education level of Higher Secondary are in workforce in 2023-24, as compared to 11.4 percent in 2017-18.
Further, out of total women educated up to primary level, around 50.2 percent are in workforce in 2023-24, compared to 24.9 percent in 2017-18.
On the state level, as well, more than 400 state-level schemes support entrepreneurship. Together, these initiatives are helping rural women thrive in diverse sectors.
It is evident from above that employment trends for women in India from 2017-18 to 2023-24 present a positive picture of increased female participation in the work force, thereby indicating their strides in participation in economic activity. An upward trend of educated women in workforce is a positive one, as is the steady increase in earnings across both the self-employed and regular salaried class. As is understood, continuing education and domestic commitments are two important reasons for those females who remain outside workforce.
Improved workforce participation, declining unemployment rates, and enhanced opportunities for women reflect the country’s progress toward economic resilience and gender equality. The data underscores the effectiveness of government initiatives and the growing focus on education, skill development, and entrepreneurship as drivers of employment.
- Worker Population Ratio (WPR): Increased from 46.8% in 2017-18 to 58.2% in 2023-24.
- Labour Force Participation Rate (LFPR): Rose significantly from 49.8% to 60.1% during the same period.
- Unemployment Rate (UR): Declined sharply from 6.0% to 2%, marking improved job availability and economic stability.