India’s journey from a middle to a potentially high-income nation harbors paradoxes, particularly in the realm of female labor force participation. Dr. Rosa Abraham’s insights from the annual State of India Working 2023 report illuminate a concerning trend: the decreasing participation of women in the workforce, especially in rural areas, which starkly contrasts with global patterns where economic advancement typically invites greater female workforce involvement. At an event last week, Dr. Abraham pointed out the peculiar trajectory of India’s female labor force participation, which fails to follow the expected U-curve—high in less developed economies, dipping with economic progress, and rising again at higher development levels. Instead, India sees a persistent decline, with only about 17% of urban women and an even smaller percentage of rural women engaged in paid employment. This deviance is alarming and signals a wasted potential in half the population. The reasons are manifold. The Periodic Labour Force Survey Report 2022-23 cites a participation rate of about 37% among women, hinting at a massive underutilization of available human resources. This shortfall is often explained through a ‘supply side story’ focusing on social norms, mobility restrictions, and a disproportionate care burden that discourages women from seeking employment.

Moreover, the concept of the ‘motherhood penalty’—often discussed in the context of high-income nations where women face significant career setbacks post-childbirth—seems absent in India according to recent data. However, this is not necessarily a victory. It reflects a dire scenario where women, especially in lower-income brackets, cannot afford the luxury of stepping away from work post-childbirth. They continue to engage in informal and precarious jobs, often under conditions that compromise both their health and that of their children. This dismal panorama invites a critical question: Is mere employment sufficient, or should the focus shift towards the quality of employment and the holistic integration of women’s roles as both breadwinners and caregivers? As India stands at the crossroads of economic transformation, it must reevaluate its strategies not just to include women in the workforce but to ensure they thrive without compromise. The time is ripe for policymakers to craft a dual approach that addresses both the supply constraints and the demand failures, fostering an environment where women’s labor is visible, valued, and vested with the dignity it rightfully deserves.

By Vishal Parihar Sir

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