India needs 400 million more women in workforce to boost economy by USD 14 trillion: Report

India requires an additional 400 million women in the workforce to contribute USD 14 trillion to the economy which would necessitate nearly doubling the current female labour force participation rate (LFPR) from 37 per cent to 70 per cent by fiscal year 2047, according to a new report.

Non-profit The/Nudge Institute has unveiled the Labour Force Participation Distillation Report, outlining a crucial element for India's economic future.

The report is based on the Periodic Labour Force Survey (PLFS) over the years.

Why India needs a stronger female workforce?
As the country aims to become a USD 30 trillion economy by 2047, the report highlights the need for a substantial increase in female labour force participation to achieve this goal, reported PTI.

According to the report, India requires an additional 400 million women in the workforce to contribute USD 14 trillion to the economy.

This would necessitate nearly doubling the current female labour force participation rate (LFPR) from 37 per cent to 70 per cent by fiscal year 2047.

With only 110 million women projected to join the labour force by then, an additional 145 million women need to be integrated to meet this target.

Report reveals disparity in job security between both genders
The report reveals a stark disparity in job security and recovery between men and women.

Women were found to be seven times more likely to lose their jobs and eleven times more likely not to recover from job loss.

By 2020, nearly half of the women employed in 2019 had exited the workforce, the report said.

Women predominantly work in low-productivity sectors, such as agriculture and manufacturing, where they face limited advancement.

Women earn less than men in unskilled roles
According to the report, in construction, women represent just over 12 per cent of the workforce, often earning significantly less than men in unskilled roles, stated PTI.

The pandemic has exacerbated these issues, with many rural women forced back into work due to income loss or job loss of primary earners, underscoring the fragility of female employment.

How can we increase female labour participation?
To address these challenges, the report outlines three key pathways to increase female labour force participation.

First, redefining work through platform jobs and digital microwork could activate fractural employment.

Second, enhancing entrepreneurship opportunities via digital commerce infrastructure could invigorate the sector.

Third, addressing bottlenecks, such as mobility and digital access, is crucial to improving women's participation in the labour market.

The Head speaks...
Kanishka Chatterjee, Director & Head of The/Nudge Prize, emphasised the urgency of this challenge, to PTI.

"India's demographic dividend and dreams of a $30 trillion economy cannot be realised without boosting the participation of women in the workforce," Chatterjee said.

He acknowledged the strides made but stressed the need for urgent and sustained action to overcome economic, social, and cultural barriers.

How was the data retrieved?
To produce this report, The/Nudge Prize team looked at all of the PLFS data across the last two cycles of different sectors that are contributing to it or that are seeing higher growth rates, the report said.

"When we looked at PLFS data, we understood what the supply side is or where women or men work today. But there are no other data pointers available where we can clearly see what are the demand markers available in India which will hire women, or which may be better suited for women to take jobs or to drive their entrepreneurial journeys," it said.

"One of the key things to consider is if we need to solve or address labour force participation rate, and two, have a holistic approach. Not only to see how labour is available and what skills are available, but also to see what is driving demand today, and this is exactly what we also bring out in the report," the report added.