Rural India leading in female labour force participation: Report

In recent years, India has witnessed a significant rise in women’s participation in the labour force, with rural areas driving much of this growth, according to a new working paper by the Economic Advisory Council to the Prime Minister (EAC-PM)

The paper, titled 'Female Labour Force Participation Rate: An Observational Analysis of the Periodic Labour Force Survey (PLFS)', said the rural female labour force participation rate (LFPR) surged from 24.6% in 2017-18 to 41.5% in 2022-23.

Meanwhile, urban female LFPR also increased—although modestly, from 20.4% to 25.4%—highlighting a gap in urban and rural dynamics.

Government schemes like Mudra loans, the Drone Didi programme, and self-help groups under the Deendayal Antyodaya Yojana have provided rural women with opportunities for economic engagement and created avenues for entrepreneurship, particularly in areas traditionally inaccessible to female workers.

Regional variations

The growth in LFPR has been uneven across states. Rural Jharkhand reported a remarkable 233% increase in female LFPR, while Bihar experienced a sixfold jump. Northeastern states like Nagaland saw rural LFPR rise from 15.7% to a staggering 71.1%.

However, urban growth has been more subdued, with Gujarat standing out due to a 63% increase in its urban female LFPR. On the other hand, urban Tamil Nadu showed minimal change, rising from 27.6% to 28.8%, and states like Punjab and Haryana persistently recorded low female LFPR.

The study highlights a bell-shaped trajectory for female LFPR, peaking between the ages of 30-40 before declining sharply. This pattern contrasts with the male LFPR, which remains high (around 100%) from ages 30 to 50 before gradually tapering off.

The report also highlighted that marital status significantly impacts these trends. Married women, particularly in rural Rajasthan and Jharkhand, demonstrated higher workforce participation than their unmarried counterparts. However, in urban settings, marriage, as well as childcare responsibilities reduced female LFPR, particularly for women aged 20-35 with children under 14.

Despite progress, Punjab and Haryana struggle with persistently low female participation rates. Social and cultural norms, along with childcare responsibilities continue to limit urban women’s workforce engagement. Furthermore, the presence of children and a lack of spousal support exacerbate these issues, particularly for women in urban settings.