Women’s work is one of the clearest indicators of a country’s economic strength. In India, however, women’s participation in the labour market continues to lag, despite rising education levels and expanding urban economies.
A new study based on seven years of Periodic Labour Force Survey microdata, from 2017–18 to 2023–24, presents a complex picture of modest gains, deep regional divides, and the limits of education as a pathway to employment.
The Female Labour Force Participation Rate increased from 20.3% in 2017–18 to 26.8% in 2023–24, but this progress has been uneven. During the pandemic, women lost employment at a faster rate than men, as lockdowns disrupted sectors where women are disproportionately represented, including domestic work, retail, and informal services.
The recovery that followed was driven less by opportunity than by necessity, with more women turning to home-based work and small, informal enterprises.
Even after this recovery, India’s female participation rate remains well below the global average. The data suggest that the problem is not a lack of willingness to work. Rather, social restrictions, limited mobility, safety concerns, and inadequate support systems continue to keep women out of formal employment.
Aspirations have risen, but pathways into stable work remain narrow.
The contrasts across states are striking. In the Northeast, women’s labour participation rivals that of many developed economies. Meghalaya, Nagaland, Manipur, and Sikkim consistently report rates above 40%, with Nagaland reaching 53.5% in 2023–24.
These outcomes reflect social norms that support women’s mobility, economic participation, and engagement in agriculture and allied activities.
By contrast, states such as Bihar, Uttar Pradesh, Rajasthan, and Jharkhand struggle to draw women into paid work. Bihar’s female labour participation stands at just 14.7%. Deeply entrenched gender norms, concerns about safety, and weak transport infrastructure create barriers that education alone cannot dismantle.
Even economically vibrant regions such as Delhi record low female participation, underscoring that growth does not automatically translate into inclusive labour markets. These differences point to the decisive role of social context and local institutions.
Similar patterns emerge in the Female Worker Population Ratio. Nagaland shows a dramatic rise from 11.6% in 2017–18 to 48.7% in 2023–24, while many other states show little movement. Yet official measures still fail to capture the full extent of women’s economic contribution.
Large amounts of women’s labour — household work, caregiving, and farm activities — remain unpaid and unrecorded. This work sustains families and local economies but remains largely invisible. As economist Mitali Nikore notes, it is “informal, invisible, and intensive,” and its exclusion distorts how productivity and welfare are understood.
Education outcomes tell a similar story of unmet potential. Women’s literacy and higher education levels have improved steadily, but these gains have not translated into proportional increases in employment.
Social expectations around marriage and motherhood, limited job options, safety concerns, and workplaces that do not accommodate women’s needs help explain this gap. Education equips women with skills, but without supportive environments, those skills often remain unused.
Expanding women’s participation requires structural interventions rather than symbolic commitments. Unsafe and unreliable transport continues to be a major deterrent. Investment in affordable, secure public transport and better last-mile connectivity can have an immediate impact on women’s ability to seek and retain employment. Early reforms in states such as Kerala and Maharashtra indicate the potential of such measures.
Childcare remains another critical constraint. The lack of affordable and accessible childcare forces many women, including those with higher education, to withdraw from the workforce. Expanding crèches, daycare facilities, and support for young mothers can ease this burden.
Recognising unpaid work is equally important. Indian women devote significantly more time to unpaid household and care work than men. Improving data collection, extending social security to caregivers, and designing schemes that acknowledge unpaid labour can help build a more inclusive economic framework.
Skill development must also respond more directly to labour market demand. Broad, generic training programmes often fail to lead to employment. Greater emphasis on sectors with strong growth potential — such as digital services, healthcare, retail, textiles, handicrafts, and food processing — can create more realistic pathways to work.
The digital economy offers new avenues for inclusion. Online platforms enable flexible, home-based work, which can be especially valuable where mobility is restricted. Supporting digital literacy, online entrepreneurship, and access to e-commerce can expand women’s economic choices. The growth of remote and gig work presents a rare opportunity to bridge longstanding gender gaps.
Workplace culture and policies also need reform. Many organisations still lack effective mechanisms to ensure safety, flexibility, and equal pay. Clear sexual harassment policies, mentorship opportunities, flexible work arrangements, and regular pay audits can improve retention and advancement. Targeted incentives for inclusive employers can accelerate adoption.
The public sector can set an important example. Expanding women’s employment in teaching, healthcare, and administration not only creates stable jobs but also reshapes social norms around women’s economic roles. Visibility in governance and frontline services helps normalise women’s participation in the workforce.
Seven years of labour data show that while India has made progress, structural barriers remain deeply entrenched. Some states demonstrate what is possible when social norms and institutions align, but the gap between education and employment persists nationally. Whether India can convert its invisible female workforce into a recognised and supported economic force will shape its growth trajectory in the years ahead. Gender-inclusive growth is not optional; it is central to the country’s economic future.
Dr Sachan is an Assistant Professor, FIIB; Khan is an independent researcher; and Dr Badri is Founder, Infisum Modeling.
Views are personal