Women, Marriage and Labour Market Participation

Why in News?

• Participation in the labour market by women is correlated with improved economic prospects and increased decision-making power at home.
• Macroeconomically, women's intra- and inter-household bargaining power as well as the country's overall economic growth are significantly impacted by a lower level of women's labour force participation rate (LFPR).

Labour Force Participation Rate (LFPR)

• LFPR is defined as the percentage of persons in labour force (working or seeking or available for work) in the population.
• And, the female labour force participation rate (FLFPR) is the percentage of working-age women currently employed or seeking employment. 

Worldwide Trend in Female Labour Force Participation

• Globally the level of female labour force participation remains relatively low.
• World Bank estimates (2022) show that the worldwide LFPR for women was 47.3% in 2022.
• Despite the remarkable advancements observed in the global economies, there has been a persistent decline in the LFPR of women in developing nations.
• Hence, a significant disparity in labour market participation based on gender continues to persist worldwide.

The Periodic Labour Force Survey (PLFS) Data for Women in India

• The PLFS data indicates that for women in the working age group (15-59 years), LFPR is only 35.6 per cent in India.
• The participation rate stands at 39.3 per cent and 26.5 per cent, respectively, in rural and urban areas in 2021-22.
• However, from 2017 to 2021, women’s LFPR increased relative to men, particularly in rural areas.
• The estimations also indicate that female labour force participation in India between 1990 and 2022 has decreased from 28% to 24%.
• This fall has obstructed their growth and hindered their ability to achieve their maximum capabilities.

Reason Behind the Decline/Low Participation Rate of Women in Labour Force

• Movement of Production
  • Economist Goldin (1994) highlights that LFPR of adult women exhibits a U-shaped pattern during economic growth.
  • Further, she added that the initial decline in the participation rate is due to the movement of production from the household, family farm, and small business to the wider market.
• Marriage
  • The issue becomes worse when married women express a desire to participate in the labour market.
  • After marriage, there is a tendency for women’s LFPR to decrease due to many variables.
  • According to the PLFS data (25 to 49 years), it becomes apparent that married women show a considerably lower employment proportion under the Usual Principal Status (UPS)when compared to the Usual Principal and Subsidiary Status (UPSS).
  • The decline in the female LFPR is primarily concentrated within the age group of 25-29.

Problems Faced by Married Women

• Increasing Family Obligations: Women’s limited educational qualification and less mobility result in increasing family obligations, and societal disapproval associated with women in employment outside the domestic sphere. 
• Marriage Further Amplifies Domestic Obligations: The institution of marriage amplifies domestic obligations for women, at the same time imposing many social and cultural barriers that affect their participation in the workforce.
• Societal Factors
  • Several other societal factors contribute to limited labour participation for women, such as their religious and caste affiliations, geographical location.
  • The wealth of their household, and prevailing societal norms surrounding women’s employment outside the house also have effect on women’s participation in the labour market. 

Some Other Challenges Faced by Married Women

• When women decide to resume their professional careers upon marriage, they tend to exhibit a preference for some employment opportunities that offer enhanced flexibility and are situated near their residences.
• Women also encounter gender-asymmetrical professional costs as a result of several societal constraints.
• It leads to gender disparities in premarital career selections, income inequality, age at marriage, and decisions about fertility.
• It has been observed that women of the upper strata tend to adhere to stringent societal standards by predominantly assuming domestic roles.
  • Women from the lower strata are more inclined to engage in the labour market, primarily driven by economic constraints that stem from poverty.
• Women lacking literacy skills demonstrate a greater inclination to participate in the labour force after getting married, as opposed to their well-educated counterparts.
• Empirical analysis that relates to the allocation of female labour across diverse industry sectors in India demonstrates that agriculture remains the prevailing sector in terms of female employment.

Solutions to Promote Greater Participation of Female in Labour Market

• Enhance the Quality Day Care Services
  • The absence of adequate day-care services frequently acts as a disincentive for female labour force participation.
  • Therefore, it is imperative to enhance the quality and accessibility of day-care services/crèches for employed women across various socio-economic strata, encompassing both formal and informal sectors.
  • The government has launched initiatives such as the National Creche Scheme for The Children of Working Mothers.
  • The implementation of such schemes is imperative in both the public and private sectors.
  • This is particularly important in increasing the involvement of married women in the labour field. 
• Also, the implementation of work settings that prioritise the needs and well-being of women, the provision of secure transportation options, and the expansion of part-time job possibilities would serve as catalysts for the greater participation of women in the labour market within India.

Conclusion

• There are multiple factors that contribute to the diminished labour force involvement of married women or their tendency to exit the labour field after marriage.
• Therefore, it is important to look at suitable solutions to promote women’s empowerment in the phase of high economic growth.
• In addition to being economically necessary, empowering women in the workforce is a critical first step towards gender equality and inclusive economic growth.

Q1) What is the objective of the Periodic Labour Force Survey (PLFS).

The PLFS conducted by National Statistical Office (NSO) estimates the key employment and unemployment indicator in the short time interval of three months for the urban areas and in both rural and urban areas annually.

Q2) How is the Labour Force Participation Rate (LFPR) calculated.

As per OECD, LFPR is calculated as the labour force divided by the total working-age population, hence estimating an economy’s active workforce. Labour force is the percentage of the population (in working age-groups) that is employed, or is looking for work, but is unemployed.

Source: The Hindu