Syllabus: GS3/Economy
Context
- The Periodic Labour Force Survey (PLFS) 2025 reveals a significant increase in the Female Labour Force Participation rate (FLFPR) since 2020, following the COVID-19 pandemic.
About
- The overall FLFPR for those aged 15 years and above increased from 30% in 2019-20 to 40% in 2025.
- The increase was more pronounced in rural areas, where the FLFPR rose from 33% to 45.9%, compared with an increase from 23.3% to 27.7% in urban areas.
- Average Annual Percentage Point (AAPP) change in rural: West Bengal, Uttar Pradesh, Gujarat, Odisha, Bihar, Rajasthan and Haryana recorded AAPP above the all-India rural average.
- AAPP changes for urban areas: Rajasthan and Gujarat recorded particularly sturdy improvements, Uttarakhand, Kerala, Chhattisgarh, Karnataka, Odisha, Bihar and Andhra Pradesh also recorded AAPP above the all-India urban average.
- The pace of improvement in female labour force participation differs substantially across States and between rural and urban areas.
- AAPP measures the pace of improvement in FLFPR, but does not indicate the absolute level of participation.
- A State may have a low AAPP because it already has a high FLFPR, while another may show a high AAPP but still have low overall female participation.
Factors Responsible for Rise in FLFPR in India
- Expansion of self-employment and rural livelihoods: A significant part of the rise is associated with increased participation in self-employment, family enterprises and agricultural activities, particularly in rural India.
- Growth of women’s Self-Help Groups (SHGs): Programmes such as DAY-NRLM have expanded women’s access to credit, skills, entrepreneurship and diversified livelihoods.
- Expansion of employment opportunities: Growth in sectors such as manufacturing, services, retail, education, healthcare and other non-farm activities has gradually created more avenues for women’s employment.
- Improvement in women’s education and skills: Rising educational attainment and greater participation in skill-development programmes have increased women’s employability and aspirations to enter the labour market.
- Changing social attitudes and aspirations: Increasing awareness of women’s economic independence, financial autonomy and entrepreneurship has gradually challenged traditional gender roles.
- Greater economic need in rural households: For poorer households, women’s participation can provide an important additional source of income and livelihood security.
- Government policies supporting women’s employment: Initiatives involving SHGs, skilling, entrepreneurship, financial inclusion and rural livelihoods have lowered some of the barriers to women’s economic participation.
Barriers to Women Led Development
- Gender Bias: Despite progress, many women encounter stereotypes that question their competence and leadership abilities.
- Work-Life Balance: Balancing professional responsibilities with traditional family roles can be particularly demanding, often leading to burnout.
- Harassment and Discrimination: Workplace harassment remains a significant issue, creating hostile environments that discourage women from asserting themselves.
- Lack of Access to Education: Limited access to quality education, especially in rural areas, affecting girls’ future opportunities.
- Economic Inequality: Women often face wage gaps, limited job opportunities, and unequal financial independence.
- Child Marriage: Prevalence of child marriage, particularly in rural areas, which affects women’s health, education, and autonomy.
Government Initiatives to Increase Women Participation in Labour Force:
- Pradhan Mantri Mudra Yojana (PMMY): Under PMMY, women can avail of micro-credit loans without collateral to set up small enterprises, helping women overcome barriers related to accessing capital.
- Beti Bachao Beti Padhao Scheme: The scheme works to prevent gender-based discrimination and violence, focusing on changing societal attitudes towards girls.
- It promotes education, health, and empowerment, which indirectly increases women’s participation in the labor force.
- Maternity Benefit (Amendment) Act, 2017: The Act extended the maternity leave from 12 weeks to 26 weeks for women working in establishments with more than 10 employees.
- Women Entrepreneurship Platform (WEP) by NITI Aayog: The platform offers mentorship, networking, funding, and skill development opportunities for women in business.
- Self-Help Groups (SHGs) and National Rural Livelihood Mission (NRLM): The NRLM, through its SHG component, encourages women in rural areas to form collectives that can access credit, entrepreneurship training, and marketing opportunities.
- National Creche Scheme: This scheme supports working mothers, especially those in the unorganized sector, by setting up daycares in nearby locations where they can leave their children while they work.
- Mission Shakti is a women empowerment programme launched by the Ministry of Women and Child Development (MWCD) for the period 2021-2025.
- It aims to strengthen interventions for women’s welfare, safety, and empowerment, making women equal partners in nation-building.
Conclusion
- India’s rising Female Labour Force Participation Rate (FLFPR) marks an important shift towards greater economic empowerment and more inclusive growth.
- However, sustaining this momentum requires moving beyond participation to quality, remunerative and secure employment.
- Addressing gender gaps in wages, skilling, childcare, workplace safety and access to formal jobs can help convert the rise in FLFPR into a durable demographic and economic dividend.
Source: TH
