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Women’s Workforce Participation In India: Statewise Trends

Bihar has the lowest female workforce participation rate (FWPR) among all states at 2.8 percent. The decline in FWPR has been shaper in rural areas as compared to urban areas, pushing a large number of women out of the workforce since 2007-08. With the decline in women workforce, there has been a substantial increase in the share of women in regular employment, in line with the national trend, and a significant decline in the share of self-employed, which is greater than the decline observed at the all India level. Women’s self-employment in Bihar is characterised by high incidence of own account work and low share of unpaid work, in contrast with all India figures.

Women’s Workforce Participation In India: Statewise Trends

Women’s labourforce participation rates (LFPR) reveals some interesting trends for Maharashtra. As per the figures from the labourforce surveys, the LFPR is significantly higher than the all-India figures, largely driven by higher than average rural employment. The state also shares a decline in self-employment and casual employment and a shift towards regular wage work for both rural and urban women. In Maharashtra the urban areas witnessed a consistent rise in regular wage work of women since 2004-05. More than 60 percent of women are employed as regular workers – 70 percent of which is concentrated in the services sector such as education, health and retail. In rural areas, the share of casual workers is considerably higher at around 42 percent, followed by 52 percent in self-employment. The incidence of unpaid family workers among self-employed women exceed 80 percent. While the urban areas show considerable diversity of women workers across occupations and sectors, women in the rural areas remain concentrated as manual workers in agriculture or within construction work.

Financial Inclusion and FLFP

India’s impressive economic growth in recent years has not translated into increased participation of women in the workforce. Despite rising education levels, declining fertility rates, and growing GDP, female labour force participation (FLFP) has steadily declined, reaching historic lows. This trend has been exacerbated by job stagnation, high unemployment rates, and the economic impact of the pandemic-disproportionately affecting women, particularly those in informal employment and without social protection.

Among the various factors influencing FLFP, financial inclusion remains a critical yet underexplored component. India has witnessed a rapid expansion in access to formal financial services; however, a significant gender gap persists-driven by structural barriers such as societal norms, limited literacy, and lack of collateral. In South Asia, this gap is among the highest in the world, with women continuing to be excluded from formal financial systems, which in turn impedes their socio-economic mobility.

To address this, targeted strategies are essential. Increasing the number of women working as banking agents could help narrow the gender gap in financial service use, as evidence suggests that female clients are more likely to engage with female agents. Self-Help Groups (SHGs) have shown potential in connecting women to financial systems, but mechanisms are needed to reach the most marginalised and ensure meaningful participation. Streamlining credit access through innovative approaches-such as using non-traditional forms of collateral, supporting long-term investment, and tailoring schemes like the Pradhan Mantri MUDRA Yojana (PMMY) for women entrepreneurs-can further bolster their inclusion. Additionally, stronger oversight of schemes like PMMY and Jan Dhan is crucial to prevent misuse and ensure that benefits reach the intended female beneficiaries.

To truly unlock the economic potential of Indian women, financial inclusion must be recognised as both a tool and a pathway to greater workforce participation.

Mobility and Safety of Women

India’s remarkable economic growth in recent decades has not translated into equal opportunities for women in the workforce. The female labour force participation rate (LFPR) stood at a historic low of 23.3% in 2017-18, with only a handful of countries reporting lower levels. A key barrier limiting women’s participation in the workforce is the pervasive concern for their safety, which affects not only their freedom of movement but also their access to education, healthcare, and livelihood opportunities. From fears of sexual violence in public spaces and workplaces to societal norms that restrict mobility, women face significant structural and cultural challenges.

This policy brief explores how the lack of safety undermines women’s physical and social mobility and, in turn, their economic empowerment. It highlights the need for gender-inclusive urban planning, greater investment in safe and affordable public transport, and strengthened workplace safety laws. Specific recommendations include mainstreaming gender-responsive budgeting in infrastructure planning, effective utilisation of the Nirbhaya Fund to implement safety initiatives, and better enforcement of the POSH Act and Domestic Violence Act. Creating safer cities and workspaces is not just about protection-it is fundamental to ensuring women’s equal participation in India’s economic future.

Women’s Workforce Participation in India: Statewise Trends

Tamil Nadu, the second-largest economy in India with a GSDP of Rs 18,45,853 crores, is known for combining rapid economic growth with high social development. The state boasts strong public services, ranking third in human development and literacy (96.8%) among all states. Tamil Nadu’s female labour force participation rates (FLFPR) are significantly higher than the national average, with rural FLFPR at 35.1% and urban FLFPR at 23.6%. The state also excels in gender indicators, with a low maternal mortality rate of 66 and the third lowest crime rate against women in the country.

Women and Unpaid Work

Women’s workforce participation in India has been consistently low-and steadily declining over the last 15 years, as recorded by official surveys like those conducted by the National Sample Survey Office (NSSO) and the Periodic Labour Force Survey (PLFS). However, these numbers fail to capture the full extent of women’s economic contributions, largely because they exclude unpaid work-domestic chores, caregiving, and community roles-that women perform on a daily basis.

Feminist scholars have long advocated for the recognition, reduction, and redistribution of unpaid work as essential steps toward achieving gender equality. If the definition of work is expanded to include these invisible activities, it becomes evident that many more women are contributing to the economy than current statistics suggest.

The COVID-19 pandemic further exacerbated these inequalities. As homes transformed into sites of both work and survival, women’s unpaid workload increased significantly. A Rapid Assessment Survey conducted by the Institute of Social Studies Trust (ISST) in Delhi found that women in urban informal sectors-such as domestic work, waste picking, street vending, and construction-reported a significant rise in unpaid responsibilities, including childcare, eldercare, and food provisioning. Despite other family members being at home, women continued to shoulder the majority of domestic work, often with little or no help.

To build a more inclusive and equitable economy, it is critical to recognise and value unpaid labour and ensure that data and policy frameworks reflect the full spectrum of women’s work.

Women in the Indian Informal Economy

Globally, the informal economy employs over two billion people aged 15 and above-accounting for 61.2 per cent of total employment. In India, a slightly higher proportion of women than men are engaged in informal employment, despite the absolute numbers being lower. Informality often reflects a lack of socio-economic development and education, with workers possessing limited or no formal qualifications being more vulnerable to informal work.

In India, women are extensively engaged in productive and reproductive activities, yet much of this labour remains invisible. They are concentrated in low-skilled, low-paid informal jobs with minimal or no social protection-working as domestic workers, self-employed home-based workers, or in other precarious roles. These challenges are further compounded by caste- and religion-based discrimination, revealing the layered nature of women’s marginalisation.

The COVID-19 pandemic exacerbated existing gender inequalities within the informal sector. With the collapse of livelihoods during the lockdown, women bore a disproportionate burden of job losses and increased household responsibilities. The economic shock reinforced pre-existing gaps in employment, wages, and access to social security.

To address these inequities, the following policy recommendations are key:
– Expand employment opportunities through direct public investment and job generation, including reservation for women in these initiatives.
– Improve working conditions in the informal sector by recognising all types of work (including home-based), enforcing minimum wages, and reducing gender wage gaps.
– Strengthen access to social protection, especially old-age pensions and healthcare, including occupational health services for women in often-overlooked sectors.
– Invest in gender-sensitive infrastructure, such as safe public transport, crèche facilities, and accessible toilets.
– Support collective organising among informal women workers to strengthen their bargaining power and representation.

Addressing informality through a gendered lens is crucial for building an inclusive and equitable economy.

Women’s Entrepreneurship in India: Harnessing the Gender Dividend

India’s economic growth has largely bypassed its smallest enterprises-particularly those led by women. Despite an increase in the number of micro, small, and medium enterprises (MSMEs), only 21.5% were owned by women as of 2018-19. Even more concerning is the stagnation in growth: between 2010 and 2015, the share of women-led enterprises and their gross value added (GVA) remained static, while the share of workers in these enterprises declined.

Women entrepreneurs face layered barriers-from deep-rooted social norms and gender biases to unequal access to education, credit, and networks. For many women, entrepreneurship is not a path to scale but a survivalist response to limited employment opportunities, wage inequality, and inflexible work conditions.

India ranked 49th out of 57 countries in the 2020 Mastercard Index of Women Entrepreneurs-a stark reflection of the odds stacked against women in the entrepreneurial landscape.

To enable women to thrive as entrepreneurs, we must address structural and cultural challenges. Key recommendations include:
– Challenging restrictive gender norms and stereotypes;
– Ensuring better access to education and digital literacy;
– Expanding affordable and inclusive financing mechanisms;
– Creating women-friendly business networks and incubators;
– Leveraging technology to connect women to markets, mentorship, and information.

Enabling women to realise their entrepreneurial ambitions is not only a matter of equity-it is essential for India’s inclusive and sustainable economic growth.

Global Executive Summary: Childcare Crisis

The COVID-19 pandemic has pushed the global childcare crisis to a tipping point, threatening to reverse decades of progress on women’s economic empowerment. Women-particularly in low-income and informal work-have borne the brunt of job losses, increased unpaid care responsibilities, and the collapse of childcare services. With schools closed and social support systems overwhelmed, women have taken on nearly the equivalent of a full-time job in childcare each week, often without support, recognition, or compensation.

The crisis is especially acute in low- and middle-income countries, where COVID-19 relief measures have largely overlooked the burden of unpaid care work. Only 8% of global economic responses have addressed childcare, and two-thirds of countries have taken no action at all. Meanwhile, the female-dominated childcare sector itself is under threat, with facilities shutting down and jobs vanishing.

Tackling this crisis is not only a matter of gender equity-it’s smart economics. Investments in affordable, quality childcare can reduce the care burden on women, enable their participation in the workforce, create jobs in the care economy, and boost long-term economic growth.

Guided by the ILO’s “5Rs of care” framework, urgent action is needed to:
1. **Recognise, reduce, and redistribute** unpaid care work through gender-responsive services and social protection;
2. **Reward paid care work** by investing in and protecting jobs in the childcare sector;
3. **Ensure representation** of care workers in policy dialogues and decisions.

Childcare is the backbone of resilient economies and thriving communities. It’s time for policymakers to prioritise care-not just for women, but for a more inclusive and sustainable recovery for all.

Barriers for Women in Public Employment

India’s female labour force participation (FLFP) remains among the lowest globally, falling to 17.5% in 2017-18. Despite more women gaining education and work readiness, access to secure jobs-especially in the public sector-remains limited due to structural and social barriers.

The public sector is a vital source of formal employment for women, with nearly one in four female non-agricultural workers employed by the government. Yet women still account for just 30% of all government employees, and are less likely than men to hold regular salaried roles or access social security benefits.

Public employment offers more stability and benefits for women than most sectors, but widening their participation requires targeted reforms. These include:

– Investing in women’s education and challenging social norms;
– Strengthening childcare and basic service infrastructure;
– Formalising roles like Anganwadi workers and bank sakhis;
– Creating promotion pathways and leadership opportunities;
– Filling vacancies with gender-sensitive recruitment practices;
– And investing in evidence to inform policy action.

Expanding access to public sector jobs can drive economic recovery, reduce gender gaps, and build a more inclusive and resilient workforce.