The paper by the Great Lakes Institute of Management, Chennai, calls for policy reforms that address systemic inequalities in education, employment, and domestic responsibilities.
Female employment rises, but 89 million urban women still outside workforce: Report
The report calls for policy reforms that address systemic inequalities in education, employment, and domestic responsibilities.
Women’s employment in urban India has increased by 10% over the past six years, signalling positive strides toward gender equality in the workforce. However, a white paper by the Great Lakes Institute of Management, Chennai, launched on International Women’s Day, underscores a troubling reality. Over 89 million urban women remain outside the labour force, revealing persistent hurdles to full participation.
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Despite the uptick in female workforce participation, Dr. Suresh Ramanathan, Dean of Great Lakes Institute, warned that job creation must accelerate to meet the needs of both men and women. "If quality job creation doesn’t keep pace, we risk societal pushback against workplace diversity," he said. With rising male unemployment and entrenched cultural norms that position men as the primary earners, the increasing number of women entering the workforce could provoke resistance, potentially undermining gender diversity initiatives.
'No gender parity yet'
Dr. Vidya Mahambare, Professor of Economics at Great Lakes, echoed similar concerns, emphasising that while women’s participation is rising, it has not yet translated into gender parity in critical areas such as earnings, career growth, and domestic responsibilities.
"To drive real change, we must focus on creating more employment opportunities for all and instituting structural reforms in childcare policies, flexible work arrangements, and societal norms," she said.
A major challenge underscored in the report is the underutilisation of women’s skills, particularly among highly educated women. Despite significant advances in education, over 19 million graduate-educated urban women remain outside the workforce due to a mix of personal and societal factors. Caregiving duties, inflexible work arrangements, and commuting difficulties hinder these women from fully utilising their skills, contributing to a significant loss of human capital.
Diversity backlash?
The report also discusses the growing risk of a "diversity backlash," where rising female workforce participation may trigger societal resistance, particularly in dual-income households.
Dr. Ramanathan pointed out that as male unemployment rises, the push for workplace diversity may face backlash. In 62% of dual-income households, husbands continue to out-earn their wives, even when both partners have similar academic qualifications. Moreover, women continue to bear the bulk of domestic responsibilities: in 41% of such households, wives handle most of the household chores, compared to just 2% of husbands.
Challenges for urban working mothers
Urban working mothers face unique challenges. While remote work has provided some flexibility, it has not alleviated the burden of unpaid domestic labour. The report reveals that 86% of working mothers spend up to three hours a day on childcare, yet only 44% feel they have adequate support at home. This underscores the need for more supportive workplace policies, including flexible working hours and childcare assistance, to accommodate working parents better.
Rukmini S, founder of Data For India, said that nearly 40% of women in the workforce work as unpaid helpers in family-run businesses, contributing without remuneration.
“This makes a strong case for the need to reassess the definition of ‘work’ and how it reflects women’s autonomy and economic contribution,” she added.
'Tamil Nadu, a shining example'
However, Tamil Nadu stands as a positive example, with one of the highest female labor force participation rates in both urban and rural areas, according to Dr. Angayar Pavanasam, Project Manager of the Tamil Nadu Women Employment & Safety Project (TNWESafe).
“Government schemes such as the Pudhumai Penn programme have helped boost female education and employability, with 40% of women employed in India’s manufacturing sector coming from the state,” she explained.
Despite these regional successes, the broader picture remains challenging. The report calls for policy reforms that address systemic inequalities in education, employment, and domestic responsibilities. Accelerating job creation, fostering inclusive workplaces, and addressing societal norms are essential to unlocking the full potential of India’s female workforce.
