Gendered Perspectives of the Demographic Dividend
It has been argued that India might not be able to realize its demographic dividend to the fullest because of the disparities in employment opportunities for women.
Now what do we mean by the demographic dividend?
In simple terms, demographic dividend means how much a country can grow or progress with respect to a change in the age structure of its citizens.
A young population as a result of demographic shifts and the predicted rise of the middle class are viewed as essential components of India's ability to capitalize on demographic dividends.?
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While the potential demographic dividend is well recognized, many people are skeptical about the country's ability to capitalize on demographic changes due to several institutional restrictions. Among these, the absence of considerable improvement in female labor force participation and other gender-related metrics has attracted wide attention.?
The Female Labour Force Participation Rate (LFPR) in recent times has become an area of speculation owing to its decline despite various policy measures being in place. The composition of the female labour force is different in different areas and across different sectors. While in rural areas, agriculture is the sector where females are generally involved, it is the manufacturing and services sector in the urban area in which females are involved. However, despite having a considerable share of employment in these sectors, most of the female workforce is concentrated in the informal sector and thus most of them are involved in marginal jobs. More importantly, a large portion of the contribution of the female labour force goes unnoticed owing to it being a part of family labour or unpaid household work/care work which is not accounted for in most cases.
LinkedIn data demonstrates a persistent skewing in women's presence in the workforce and leadership across industries. Women account for 41.9% of the workforce in 2023 in LinkedIn's sample, which includes 163 countries, while the share of women in senior leadership positions (Director, Vice-President (VP), or C-Suite) is 32.2%, approximately 10 percentage points lower. Women's presence in C-Suite roles falls to 25% on average, which is little more than half of the 46% representation in entry-level positions.
In India, the labour force participation for young women is much lower as compared to many other countries. Currently, the share of women in India’s workforce at 33% which is much less than that of males at 67%.
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According to the Periodic Labour Force Survey (PLFS), 22 percent of young women (15 to 29 years old) in rural regions and 20 percent in urban areas were in the labour force in 2021-22, whereas 62 percent and 59 percent of male youth were in the labour force, respectively.
Another facet of the difficulty is the recent rise in youth unemployment (among both men and women), particularly in urban areas. Women youth, particularly those living in cities, experience higher rates of unemployment than their male counterparts. In 2021-22, the female urban youth unemployment rate was 21.6 percent, while the male rate was 15.8 percent.
Comprehensive measures are needed to ensure decent work conditions for women to generate more quality jobs for them and improve the Female LFPR of the Indian economy. There are multiple hurdles that women face when they want to join the labour force. Social institutions, lack of quality jobs, gender biases, and lower-wage payments are some of the major issues that women face in developing economies like India. More skill development programs and training should be initiated by the Government, for instance, vocational training, technical training etc. under the National Skill Development Corporation should be intensified.
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