Study reveals surge in Indian women's self-employment
ECONOMY & POLICY

Study reveals surge in Indian women's self-employment

A recent study, released by the Bangalore-based Azim Premji University in their report "State of Working 2023," has highlighted a notable increase in women's involvement in India's labor force. This upturn has been primarily driven by self-employment, which appears to be influenced more by economic distress than overall economic growth.

Between the quarter ending in June 2018 and the quarter ending in December 2022, the percentage of women engaged in self-employment surged by 14 points, reaching nearly 65%. The report underscored the importance of understanding the underlying reasons for this increase, noting that if women's participation in the workforce rises due to economic growth and heightened labour demand, it has different implications than if it rises due to declining household incomes, compelling women into self-employment.

Despite this increase in self-employment among women, the earnings from such endeavours remained at only 85% of their levels from the quarter ending in June 2019. India's female labour force participation, while improving to just under 33% following the Covid pandemic from 30% earlier, continues to be low. Furthermore, the wage gap, while narrower compared to the early 2000s, still persists, with women earning only 76% of what men do as of 2021-22.

In response to these challenges, the government led by Narendra Modi has proposed reserving a third of the seats in the lower house of parliament and state assemblies for women.

Despite India's rapid economic growth, which has contributed to Modi's popularity ahead of the scheduled national elections in May 2024, criticism persists regarding the government's failure to generate sufficient employment opportunities. While the economy added almost 57 million jobs in the five years leading up to June 2022, expanding India's workforce to 493 million, approximately 35 million people remained unemployed, as indicated by government data analysed by the university.

The university's research also revealed that India's growth has been less labour-intensive compared to the average in developing countries. The report emphasised that over the long term, economic growth (GDP) and employment growth have exhibited no strong correlation in India, suggesting that policies aimed solely at achieving faster GDP growth may not necessarily accelerate job creation.

Unemployment rates, especially among the youth, are notably high, with the unemployment rate for graduates in the under-25 age group reaching as high as 42.3% as of June 2022, according to the report. However, this rate decreases with increasing age, dropping to 22.8% for the 25-29 age group and further to 9.8% for the 30-34 age group. The report underscored the need to examine the nature of jobs available to graduates and whether they align with their skills and aspirations.

A recent study, released by the Bangalore-based Azim Premji University in their report State of Working 2023, has highlighted a notable increase in women's involvement in India's labor force. This upturn has been primarily driven by self-employment, which appears to be influenced more by economic distress than overall economic growth. Between the quarter ending in June 2018 and the quarter ending in December 2022, the percentage of women engaged in self-employment surged by 14 points, reaching nearly 65%. The report underscored the importance of understanding the underlying reasons for this increase, noting that if women's participation in the workforce rises due to economic growth and heightened labour demand, it has different implications than if it rises due to declining household incomes, compelling women into self-employment. Despite this increase in self-employment among women, the earnings from such endeavours remained at only 85% of their levels from the quarter ending in June 2019. India's female labour force participation, while improving to just under 33% following the Covid pandemic from 30% earlier, continues to be low. Furthermore, the wage gap, while narrower compared to the early 2000s, still persists, with women earning only 76% of what men do as of 2021-22. In response to these challenges, the government led by Narendra Modi has proposed reserving a third of the seats in the lower house of parliament and state assemblies for women. Despite India's rapid economic growth, which has contributed to Modi's popularity ahead of the scheduled national elections in May 2024, criticism persists regarding the government's failure to generate sufficient employment opportunities. While the economy added almost 57 million jobs in the five years leading up to June 2022, expanding India's workforce to 493 million, approximately 35 million people remained unemployed, as indicated by government data analysed by the university. The university's research also revealed that India's growth has been less labour-intensive compared to the average in developing countries. The report emphasised that over the long term, economic growth (GDP) and employment growth have exhibited no strong correlation in India, suggesting that policies aimed solely at achieving faster GDP growth may not necessarily accelerate job creation. Unemployment rates, especially among the youth, are notably high, with the unemployment rate for graduates in the under-25 age group reaching as high as 42.3% as of June 2022, according to the report. However, this rate decreases with increasing age, dropping to 22.8% for the 25-29 age group and further to 9.8% for the 30-34 age group. The report underscored the need to examine the nature of jobs available to graduates and whether they align with their skills and aspirations.

Related Stories

Gold Stories

Next Story
Infrastructure Transport

Embraer to Acquire 51 Per Cent Stake in Mahindra Aerospace Arm

Brazilian aerospace major Embraer will acquire a 51 per cent equity stake in Novavayu Aerospace, a step-down subsidiary of Mahindra and Mahindra, under an Investment Agreement notified by the automobile company in an exchange filing. The transaction will give Embraer control of the aerospace business. Following completion of the acquisition, Novavayu Aerospace will cease to be a wholly owned subsidiary and become an associate of Mahindra Defence Systems, which is a step-down wholly owned subsidiary of Mahindra and Mahindra. The agreement is expected to be completed on or before December 1. Mah..

Next Story
Infrastructure Urban

RBI Opens Special Dollar Window for Three State-Run OMCs

The Reserve Bank of India (RBI) has opened a special facility to meet the entire daily US dollar requirements of three public sector oil marketing companies (OMCs), in a move aimed at easing pressure on the Indian rupee. The facility will take effect on October 12, 2026, and remain available until further notice. Indian Oil Corporation, Hindustan Petroleum Corporation and Bharat Petroleum Corporation are eligible to use the arrangement. Under the facility, the RBI will sell US dollars to the three companies through designated banks, allowing them to meet their oil-import payments without sourc..

Next Story
Building Material

Cement Prices Likely to Rise Rs. 10-15 per Bag from Mid-October

Cement manufacturers in India are likely to raise prices by Rs. 10-15 per bag from mid-October, as they seek to offset persistent increases in power and fuel costs. Emkay Research said its channel checks indicated a high probability of an increase from October 12, supported by the start of the busy construction season and favourable demand-supply conditions. The sector had implemented similar rate adjustments of Rs. 10-15 per bag during the first quarter, but the increases were insufficient to cover higher operating costs. Prices also softened during July and August because of the monsoon, wid..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code