Percentage Of Salaried Women in Urban India Declines: PLFS Report

By: WE Staff | Monday, 11 December 2023

According to data from the quarterly Periodic Labour Force Survey (PLFS), the percentage of women working in regular salaried jobs in urban India declined from 54 per cent in the first quarter to 52.8 per cent in the second quarter of the current fiscal year after employees returned to offices after the pandemic.

The National Statistical Office started publishing the quarterly PLFS surveys in Q3 of FY19. It has been the lowest share of wage employment this year. In Q1 of FY21, the percentage of women working for pay reached its highest point at 61.2 per cent.

The survey uses the "current weekly status" (CWS) measure of employment. According to the survey, the percentage of self-employed women increased from 39.2 per cent in Q1 of FY24 to 40.3 per cent in Q2 of FY24, while the percentage of casual workers increased slightly from 6.8 per cent in Q1 of FY24 to 6.9 per cent in Q2 of FY24.

Co-founder of TeamLease Services Rituparna Chakraborty claims that women's employment in India is in a unique position since rising educational attainment does not result in higher labor force participation, which lowers the proportion of women earning a living wage. The rise in education levels among women has led to them staying at home, resulting in lower labor force participation in urban areas. The pandemic has further exacerbated this trend, with many women preferring to stay home.

The labor force participation rate (LFPR) among women in urban areas has reached a six-year high of 24 per cent including the employed and job seekers, but is lower than in rural areas. The recent women's LFPR for rural women's participation at 30.5 per cent compared to urban's 22.2 per cent, according to the latest PLFS report.

Labor economist KR Shyam Sundar argues that women often work to supplement family income rather than professional growth. The urban economy struggles to produce jobs, leading to competition. However, the State Bank of India reports a structural transformation in India's labor market, with self-entrepreneurship, higher education, and access to formal credit.