India stands at a critical juncture in its economic development, with a unique opportunity to leverage its demographic dividend. With 62.5% of its population in the working-age group of 15-59 years and especially with its female labour force participation rate almost doubling in the last 6 years (1), the country is poised for significant growth. However, to fully harness this potential, sans the ill effects of declining fertility rates and fragmented family structure, it is essential to increase women’s workforce participation, particularly in urban areas, while also shifting employment opportunities to tier 2 and tier 3 cities. This article explores the barriers faced by women, the importance of flexible work arrangements, and the potential of smaller cities to capture this demographic dividend.
The Current State of Women’s Workforce Participation
Despite improvements (2), India’s female labour force participation rate (FLFPR) remains low, hovering around 41.7% as of 2023-24, compared to the male counterpart of 78.8%, according to the Periodic Labour Force Survey 2023-24 (3). This is significantly lower than global averages and highlights the challenges women face in balancing career aspirations with family responsibilities. Many women excel in education until secondary school but see a sharp decline in participation in fields like STEM due to societal norms and expectations surrounding motherhood (4, 5).
The Impact of Marriage and Motherhood on Careers
A significant 87% of women migrate due to marriage (6), displacing their place of work. Additionally, motherhood often acts as a barrier for many women, especially in urban settings. About 80% of women aged 30-64 state childcare and homemaking as the reason for being outside the labour force (7, 8).
The rural female workforce is often employed in the agricultural sector, providing flexibility in proximity to residence and seasonal work. However, urban women miss out on such flexibility unless employed in the IT sector, which may not always offer part-time work. This discrepancy underscores the need for policies that support women’s dual roles as caregivers and professionals.
Recognizing Unaccounted Contributions
A significant portion of women’s contributions through household work accounts for nearly 15-17% of India’s GDP (9). While it remains unrecognized in economic calculations, their vital role in bolstering the nation’s economy is invaluable.
The Shift Towards Flexible Work Arrangements
To facilitate higher participation rates among women, especially those balancing family responsibilities, flexible work arrangements such as remote and part-time jobs are crucial. These options allow women to engage in paid work without sacrificing their familial roles.
While remote work benefits both urban and rural women who are digitally literate, part-time work would help utilize the demographic dividend overall. Sectors including government jobs, research, tech and IT, marketing, HR, finance, business, architecture, engineering, design, entertainment, legal professions, and journalism can leverage this model.
Expanding Employment Opportunities to Tier 2 and 3 Cities
The government and market are cognizant of the potential in tier 2 and 3 cities (10, 11). Shifting workplaces, especially in the manufacturing sector, can unlock significant potential by reducing land costs, alleviating pollution and congestion, and creating employment opportunities for women and the growing working-age population in these cities.
Conclusion
To unlock India’s full economic potential, it is imperative to increase women’s workforce participation through flexible work arrangements that respect family values while simultaneously shifting employment opportunities to tier 2 and tier 3 cities. This ensures work-life balance, better mental well-being, and a supportive environment for future generations. Equipping women with skills through online platforms like NPTEL and enabling remote and part-time work can drive economic productivity and foster an equitable society.