The Hidden Cost of Growth: Rising Female Unemployment in India

India counts among the fastest-growing economies in the world. However, an economy is not about just growth, but the degree to which people are involved in the process. Since roughly 50% of Indians are women, a significant percentage of female unemployment in India can slow down the country’s economy.

Despite economic growth and job availability, there are areas in the Indian economy that remain underdeveloped. One of these is female employment, and, unfortunately, the number of women professionally employed is low. While Indian women now receive proper education and training,  finding a proper occupation is problematic.

According to the Periodic Labour Force Survey (PLFS), the most recent report published in June, the unemployment rate among Indian women reached 5.9%, the highest in the last 15 months. Compared to the female unemployment rate in India in 2016, which was 8.7%, the rate has come down after a decade but remains a significant issue. This shows that despite the growing Indian economy, there are challenges to providing women with good job opportunities.

The article discusses the reasons for female unemployment in India, its impact, history, and more. Women play a significant role in any economy since they contribute to the household income, reducing the poverty rate and increasing the overall Gross Domestic Product (GDP). Therefore, female unemployment in India should be addressed in a timely and efficient manner.

Historical Background of Female Employment in India

India’s female participation rate and unemployment have always gone hand in hand. Women have participated in the economy's enhancement by working in agriculture, industry, and services. Even in ancient times, Indian women worked in farming, weaving, pottery, handicrafts, and family businesses. However, they were usually not paid for their work.

As British India adopted factory-made and imported goods, many sectors disappeared due to the lack of demand. Moreover, the social norms that promoted early marriages, lack of female education, and restricted women’s mobility further limited Indian women’s involvement in the so-called economic enhancement participation.

When India gained independence, the constitution professed gender equality and launched reforms to promote female literacy and participation. A significant improvement occurred in the 1990s when the economy liberalized, and new industries emerged. Female employees in information technology, banking, healthcare, telecommunications, and other fields gained economic independence.

Despite this, the percentage of women in India’s labor force has been steadily decreasing. One reason is that many of the new jobs created by economic reforms were more skill-intensive and concentrated in urban areas. Most rural women and those with limited education could not benefit from this.

Reasons Behind High Female Unemployment in India

There are various reasons for the rising female unemployment rate in India within the country. Many social, economic, and educational factors contribute to this problem. These may include:

1. Inadequate Working Opportunities

The Indian economy is growing, but there are inadequate job opportunities for well-educated women. Many informal sectors provide jobs with low pay, but there are not many opportunities in the organized sectors. Therefore, many women feel reluctant to take up available low-paid jobs in rough circumstances.

2. Family and Social Responsibilities

A lot of women take up roles as caregivers for their family members. This takes a lot of women out of the workforce. They are required to give up their careers after marriage or pregnancy, while this may also be due to a lack of maternity leave in Indian organizations. Moreover, many women find it difficult to go back to work after marriage and childbirth. Moreover, companies now require continuous experience, which makes it hard for them to get back into the workforce after a specified employment gap.

3. Lack of Safety and Social Constraints

The female unemployment rate in India also increases as women avoid taking up jobs due to the fear of traveling to work safely within an insecure environment. This is especially true for women who live in rural areas, who feel unsafe on roads and in public transport in many cities. Women also feel harassed in the workplace, making them hesitant to work.

4. Skill Gap

Due to online classes, a lack of practical skills, or a lack of a proper education system, skill gaps arise among students enrolled in schools, colleges, and universities. Because employers look for specific skills and competencies, such as computer literacy, communication abilities, technical skills, and work experience, many graduates don’t get a suitable job offer. Even after female students finish college or university, they cannot find a job easily due to a lack of skills compared to the requirements of a modern workplace.

Rural and Urban Differences in Employment Scenario for Women

It is noteworthy that the employment scenario of women in rural areas and urban areas has differences. Women working in rural areas engage more in agricultural work, dairy, handicrafts, food processing, and small-scale business activities. Moreover, a large proportion of female workers' employment is seasonal.

In contrast, most women in urban areas receive better education and aspire to secure well-paying jobs in sectors such as education, healthcare, banking, information technology (IT), and hospitality. However, many remain unemployed because they seek highly professional roles that match their qualifications. At the same time, those willing to accept lower-paying jobs in other fields often face a significant mismatch between their educational qualifications and the limited quality of employment opportunities available.

Finally, urban women often face such obstacles as high competition, living costs, childcare expenses, traveling time to the workplace, and balancing family life. Nevertheless, female workers in rural areas encounter a significant number of obstacles on their way to employment, including the lack of jobs, the seasonal nature of agricultural work, improper services, and poverty. Although the challenges are different, women in rural and urban areas encounter issues in finding acceptable and well-paid employment. Therefore, development of the labor market in both localities is essential for achieving economic growth.

Gender Wage Gap as Another Reason

Women participate in many sectors as officials, but are often paid lower wages than men for the same work. This gender pay gap remains a huge issue in the country. There are several reasons for this. First, a large proportion of women are employed in low-status sectors such as agriculture, domestic service, textiles, teaching, and allied hospitals. These professions offer lower wages than engineering, finance, construction, and manufacturing, which are higher-paying occupations but with fewer women.

Another explanation is that many women decide to quit their jobs after getting married or having a child. Also, women look after their home and partners, leaving them with less time to advance their careers.

Government Initiatives Supporting Women's Employment in India

To address and fight women's unemployment in the country, the government has taken several initiatives. These schemes may help women gear up and begin working again to lower the unemployment percentage and support Indian economic growth. Some of these are listed below.

• Pradhan Mantri Mudra Yojana (PMYC) offers collateral-free loans to help women establish and grow businesses. A considerable number of women have taken advantage of it and started enterprises such as tailoring, beauty parlours, food processing, and grocery, among others today.

• The Stand Up India scheme was introduced to support women entrepreneurs by providing them with financial assistance to start businesses in manufacturing, service, and trade industries.

• Deendayal Antyodaya Yojana- National Rural Livelihoods Mission encourages women's participation in Self Help Groups (SHGs) to acquire skill sets needed to participate in economic development activities.

• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is another initiative that has helped in employing a large proportion of women in rural areas. Thus, the employment scheme has enabled several Indian families to raise their living standards.

According to the Ministry of Statistics and Programme Implementation, female labour force participation has improved over time. The data indicates that the government's employment initiatives have had a positive effect on increasing the proportion of people willing to seek jobs.

Although these schemes have enabled a significant number of women to acquire new skills and become economically independent, there is a need to create more jobs that have the potential to provide long-term security. This way, the female unemployment rate in India can be reduced significantly.

Economic Impact of Female Unemployment

Female unemployment in India is a problem that concerns families and the country. Women’s unemployment results in lower incomes and financial constraints, as they cover expenses like education, health care, food, and other necessities. Families with a sole breadwinner are especially vulnerable to financial crisis, emergency, or misfortune.

A significant number of women who received good education have the potential to make meaningful contributions to the country if they have appropriate job opportunities. However, the current unemployment situation does not give them a chance to alleviate poverty, enhance education and healthcare, and improve the country's economy. Therefore, it is beneficial to raise the number of working women for the country and society.

Women who achieve financial independence are often instrumental in making important decisions for the well-being of their families. For these reasons, the female unemployment rate in India is a concern, as it is not only a matter of women’s livelihood but also of the country’s prosperity.

The Way Forward

Lessening female unemployment in India will require government effort to improve industries, educational institutions, and society. More jobs should be created for women, especially in certain industries such as manufacturing, healthcare, education, tourism, and technology.

Additionally, educational institutions should provide hands-on skills that make women desirable in the job market. The workplace should also be more welcoming to women by providing flexible working hours, equal wages, and a safe environment. Finally, families should support women’s higher studies and careers as a helping hand in developing India.

Conclusion

India has indeed made remarkable progress in terms of economic development, technological development, infrastructure, and industrialization. However, India cannot be considered truly developed until and unless women are provided with equal opportunities to contribute to the economy.

The latest PLFS data on the rise in female unemployment is a reminder that economic growth is not enough. There are multiple challenges related to skill development, lack of quality employment opportunities, social norms, safety, maternity, and wage discrimination that need to be addressed to reduce the female unemployment rate in India.

India has taken several initiatives such as Skill India, Pradhan Mantri Mudra Yojana, Stand Up India Scheme, DAY-NRLM, and MGNREGA that focus on empowering women by providing quality employment. Nevertheless, it is essential to strive hard to achieve greater intensity, ensure higher educational qualifications, create more opportunities, and provide equality. Therefore, female empowerment will benefit society and the economy as a whole.