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To achieve equitable economic growth and to broaden   Our estimates using the annual PLFS survey show that the
 consumption demand, adequate job opportunities for those   overall employment in India increased by a healthy 153.4 million   Net addition to employment (million)  Female Labor Force Metrics for 15 years
 who choose to work is critical. It is also important for meeting   in the seven-year period between 2017-18 and 2023-24,   between 2017-18 to 2023-24   and above (2017-18 vs. 2023-24)
 the aspirations of India’s youth and for inclusive development.   translating into employed people to working age population ratio
 rising from 35 per cent to 44 per cent in the comparable period.  160.0  153.4                2017-18  2023-24
 India with a population of 1.45 billion has overtaken China as   140.0
 the most populous nation as per the latest data from the UN   The above-mentioned gain in employment is attributable to an   112.8  Labour Force Participation Rate (LFPR)    23.3%   41.7%
 Population Statistics database. Our analysis shows that India   increase of 40.6 million in jobs and 112.8 million in the   120.0  Workforce Participation Rate (WPR)    22.0%   40.3%
 will add another 133 million people to the working age group   self-employed category over the seven-year period. Hence,   100.0  Unemployment Rate (UR)    5.6%   3.2%
 of 15-64 years between 2025-50 as compared to reduction of   essentially, the rise in employment numbers was mainly led by   80.0
 242 million in China. A whopping 18 per cent of the   a sharp rise in the self-employed category, with net jobs   Source: PLFS report 2017-18 & 2023-24
 incremental global workforce over the next two and a half   contributing only 26.5 per cent of the total pie.  60.0  40.6
 decades will come from India.  40.0
               20.0                                               THE SIGNIFICANT RISE IN THE FEMALE
 However, it is prudent to note here that a rise in India’s   0.0  LABOUR FORCE PARTICIPATION RATE (LFPR)
 working-age population is necessary but not sufficient for it to   UNEMPLOYMENT RATE HAS MODERATED   Jobs  Self  Total  SINCE 2017-18 IS PROMISING, AS IT
 sustain its economic growth. If India does not create enough   SHARPLY TO 3.2 PER CENT IN FY24 FROM   employed  PROVIDES A STRONG BOOST TO WOMEN-LED
 jobs and its workers are not adequately prepared for those   6.0 PER CENT IN FY18, TRANSLATING INTO  DEVELOPMENT IN THE COUNTRY
 jobs, its demographic dividend may turn into a liability.  UNEMPLOYED POPULATION FALLING TO
 16.9 MILLION FROM 23.6 MILLION IN THE   Breakup of Jobs Creation
 In India, the employment data gives information only on the   COMPARABLE PERIOD  The Government of India has launched several initiatives to
 net addition to employment which is defined as the difference   promote women empowerment and gender equality. Programs
 between employment (self-employed + jobs) added and lost       like Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Stand-Up India,
 over a specified period. It does not provide data on new job   The rise in jobs ties in with the decline in the unemployed   19.2  and MUDRA Yojana have been pivotal in enhancing women's
 hiring and jobs losses separately and the same is true for   labour force in the economy during the seven-year period. The   21.4  employment. The National Rural Livelihoods Mission has
 self-employed as well. The estimates for job creation  unemployment rate moderated from 6.0 per cent to 3.2 per   connected around 9 crore women with self-help groups, boosting
 presented here, thus, reflect the net impact of new job hiring   cent in the comparable period, translating into unemployed   self-employment. These schemes' holistic approach encompasses
 minus jobs lost.  population declining to 16.9 million in 2023-24 from 23.6   training programs, providing accessible loans, thereby promoting
 million in 2017-18.                                            education, skill development, and financial inclusion among the
                     Casual Labour  Wage/ Salaried              women. Consequently, there has been an increase in female
 The sharp rise in self-employment category is attributed to an
   The overall employment   increase in self-employment in agriculture to the tune of 78.5   Source: Various rounds of PLFS and CII Research  labour force participation rates, as evidenced by the data.
 numbers  million in the seven-year period, translating into a share of     Female participation in  However, there is a greater scope to further boost female labour
 more than 70 per cent to the overall increase in self-employed
                                                                force participation and employment outcomes. Increasing the
 workers.
                                                                labour force participation rate of women can help capitalise on
 Employment = jobs (salaried plus   With regard to pattern of job creation, it is noteworthy to   labour force  the untapped economic potential of a very large section of the
                                                                population, and be a force multiplier for the socio-economic
 casual) + self-employment  mention the trend shifted in favour of wage/salaried jobs as   development of the country.
 opposed to a pre-dominance of casual jobs in the years before.
 Nearly 52.7 per cent (21.4 million) of the increase of 40.6   Women-led development is a cornerstone to India's progress.   An examination of the relationship between female labour force
 FY18-FY24: Net addition to employment = 153.4 million  million in addition to jobs came from wage/salaried jobs. This   The Central Government has adopted a comprehensive   participation rates (LFPR) and education levels provides both
 mirrors the rise in formalization in the economy. Casual jobs   approach to empower and support Indian women across   concerning and encouraging insights. The data shows that as the
 FY18-FY24: Net addition to jobs = 40.6 million  which had been increasing in a secular trend since 2017-18   various sectors—from agriculture to technology, and from   level of education increases, the LFPR tends to moderate.  While
 FY18-FY24: Net addition to self-employment = 113.0 million  witnessed a sequential contraction for the first time in   self-employment to high-end jobs. Since 2017-18, there has   50.4 per cent of non-literate women are part of the labour force,
        been a notable increase in the female Labour Force
 2023-24 as the casual jobs shrunk by 5.4 million.              this percentage drops sharply to 17.9 per cent for women with
        Participation Rate (LFPR) and female Workforce Participation
        Rate (WPR), underscoring the progress towards a Viksit Bharat.  secondary education and 25.0 per cent for women with higher
 Employment Trends                                              secondary education. However, there is a positive trend among
        Over the past seven years, the female labour force      women with education beyond the secondary level. The LFPR for
 (in million)   Self - Employed (A)   Casual Labour (B)   Wage/ Salaried (C )   Total jobs (B+C)   Employment [A+(B+C)]  participation rate (LFPR) for those aged 15 and above has   women with a graduation degree stands at 38.4 per cent, and for
        surged from 23.3 per cent in 2017-18 to 41.7 per cent in   those with postgraduate degrees and beyond, it rises to an
 2017-18  194.5  85.0  92.8  177.8  372.3                       impressive 51.1 per cent.
        2023-24. This significant rise is primarily driven by rural areas,
 2018-19  198.3  91.7  90.6  182.3  380.5  where the female LFPR increased from 24.6 per cent to 47.6
 2019-20  228.5  100.8  97.8  198.6  427.0  per cent. Urban female LFPR also saw an increase, albeit at a   Women with lower education levels often join the casual labour
                                                                force out of necessity, while those with higher education enter the
 2020-21  243.0  101.8  92.2  194.1  437.1  relatively moderate pace. Additionally, the workforce
        participation rate (WPR) nearly doubled from 22.0 per cent to   labour force out of choice to secure formal jobs, resulting in
 2021-22  255.9  104.1  98.6  202.7  458.6  40.3 per cent, while unemployment fell from 5.6 per cent to   higher LFPR at both low and high ends of educational attainment.
 2022-23  288.1  109.6  105.1  214.7  502.7  3.2 per cent during the same period. These trends indicate a   This trend highlights the importance of investing in higher
 2023-24  307.3  104.2  114.2  218.4  525.8  growing willingness among women to work, search for, and   education for women for unlocking the full potential of the female
        secure employment opportunities, along with an increase in   workforce. By fostering educational attainment, society can ensure
 Source:  Various rounds of PLFS and CII Research  employment opportunities.  that more women not only join the workforce but also excel in
                                                                roles that maximize their skills and capabilities.

 16  QUARTERLY JOURNAL OF ECONOMICS                                                        QUARTERLY JOURNAL OF ECONOMICS  17
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