Published on: April 29, 2022
LABOR FORCE PARTICIPATION RATE
Recently, data from the Centre for Monitoring Indian Economy (CMIE) shows that India’s Labour Force Participation Rate (LFPR) has fallen to just 40% from an already low 47% in 2016
WHAT IS LFPR
- Percentage of the working-age (15 years or older) population that is asking for a job.
- Represents the “demand” for jobs in an economy
- Includes those who are employed and those who are unemployed
WHAT DID THE REPORT SAY
- In India, the LFPR is not only lower than in the rest of the world but also falling.
- In India, it has been sliding over the last 10 years and has shrunk from 47% in 2016 to just 40% as of December 2021.
- The main reason for India’s LFPR being low is the abysmally low level of female LFPR.
- As of December 2021, while the male LFPR was 67.4%, the female LFPR was as low as 9.4%
- Even if one sources data from the World Bank, India’s female labor force participation rate is around 25% when the global average is 47%.
- The reasons or low women LFPR is essentially about the working conditions — such as law and order, efficient public transportation, violence against women, societal norms etc. — being far from conducive for women to seek work.
- Further, lot of women in India are exclusively involved within their own homes (caring for their family)