India is at a critical juncture in its economic journey. A recent report highlights a significant challenge: to achieve its economic goals, India must dramatically increase the number of women in the workforce. Here’s a detailed look at the findings and the necessary steps to address this challenge.
The Economic Imperative
According to a new report by The/Nudge Institute, India needs to add 400 million women to its workforce to contribute an additional USD 14 trillion to the economy. This goal requires nearly doubling the current female labor force participation rate (LFPR) from 37% to 70% by 2047.
Current Participation and Future Projections
The report reveals that, if current trends continue, only 110 million more women will join the workforce by 2047. To meet the target, an additional 145 million women need to be integrated into the labor market. This underscores a major challenge in reaching India’s ambitious economic targets.
Disparities in Job Security
The report also highlights stark disparities between men and women in terms of job security and recovery. Women are seven times more likely to lose their jobs and eleven times more likely not to recover from job loss. By 2020, almost half of the women employed in 2019 had left the workforce, illustrating a significant issue in job stability.
Employment Sectors and Challenges
Women are predominantly employed in low-productivity sectors such as agriculture and manufacturing. For instance, in construction, women make up just over 12% of the workforce and often earn less than men in similar roles. The pandemic has worsened these conditions, forcing many rural women back into work due to income loss or job loss by primary earners.
Proposed Pathways for Improvement
To address these challenges, the report outlines three key strategies:
- Redefine Work: Embrace platform jobs and digital microwork to create more flexible employment opportunities.
- Enhance Entrepreneurship: Invest in digital commerce infrastructure to boost entrepreneurship among women.
- Address Bottlenecks: Improve mobility and digital access to facilitate women’s participation in the labor market.
Urgency and Action
Kanishka Chatterjee, Director & Head of The/Nudge Prize, stressed the urgency of increasing female workforce participation. “India’s demographic dividend and dreams of a $30 trillion economy cannot be realized without boosting the participation of women in the workforce,” Chatterjee said. He acknowledged the progress made but emphasized the need for urgent and sustained action to overcome economic, social, and cultural barriers.
Data Insights and Future Directions
The/Nudge Institute’s report is based on Periodic Labour Force Survey (PLFS) data, analyzing trends across different sectors. The team identified a gap in data on demand markers that could better indicate where women could find employment or entrepreneurial opportunities.
The report concludes that a holistic approach is necessary. It’s not enough to focus solely on labor availability and skills; understanding current demand and aligning it with women’s employment and entrepreneurial prospects is crucial.
In summary, addressing these issues is vital for India’s economic future. By implementing these strategies and increasing female participation in the workforce, India can move closer to achieving its economic goals and ensuring a more inclusive and robust economy.
