National Overview

  • Labour Force Participation Rate (LFPR) is significantly higher for men than for women across India.
    • As of 2022-23, about 82.1% of men participate in the labour force versus only 34.1% for women, though there are signs of improvement.
    • The Female Labour Force Participation Rate (FLFPR) rose from 37% in 2022-23 to 41.7% in 2023-24, with a corresponding Worker Population Rate (FWPR) of 40.3% for women, indicating steady gains.
  • Wage/Salaried Employment:
    • Overall, 25.4% of men and 19.5% of women are engaged in salaried (formal) jobs.
    • States with the largest share of formal (wage/salaried) employment include Goa and Kerala, while Bihar is at the bottom.

State-Level Highlights

States with the Highest Female Workforce Participation (All Sectors)

StateFemale Workforce Participation (%)Notes
Chhattisgarh48.4Strong rural, tribal economy; high female presence even in agriculture
Himachal Pradesh46Agricultural, handicraft-driven rural economy
Tamil Nadu42.6Rapid industrial growth, large textile and IT sectors, inclusive policies
Telangana41.8Balanced rural-urban opportunities, strong in agriculture and textiles
Andhra Pradesh40.3Women active in dairy, fishing, and unorganized sectors

States with the Lowest Female Workforce Participation

StateFemale Workforce Participation (%)Notes
Bihar4.3Deep cultural/economic barriers to female employment
Jharkhand6.6Significant gender gap; barriers in technical fields
Uttar Pradesh9.4Low literacy, patriarchal norms
Assam12.7Despite agri-base, few female formal jobs
Delhi17.8Urban safety, hiring bias, and social expectations

States Narrowing the Gender Gap in Formal Jobs

  • Kerala and Karnataka show a marked decline in the male-female employment ratio in formal sectors, suggesting proportionally more women entering formal employment recently.
  • Skill-intensive and service sectors (e.g., IT, finance, education) are seeing more female formal employment, especially in southern and western states like Karnataka, Kerala, and Tamil Nadu.

Sectoral Distribution

  • Services Sector: Urban women are predominantly found in the services sector within the formal economy; 11% of urban females are regular wage/salaried employees, mostly in services.
  • Manufacturing and IT: States with advanced manufacturing and IT (e.g., Tamil Nadu, Karnataka) show higher female shares in formal jobs.
  • Agriculture: Women dominate in informal and self-employed roles in rural agricultural states, but this is considered part of the informal sector (not covered in most formal sector analyses).

Key Trends

  • Women’s share in formal jobs is rising, especially in states with proactive policies, better infrastructure, and service-sector growth.
  • Gender wage gaps persist: Women in formal and informal roles earn significantly less than men for the same work.
  • The formal sector’s share of employment remains relatively limited (as most Indian employment remains informal), but states that encourage female education, skill development, and industry diversification show tangible progress.

Conclusion

  • The landscape of formal employment in India remains highly gendered, and the participation of women in formal jobs varies drastically by state.
  • Southern and some North-Eastern states lead in gender inclusiveness, while large northern states lag behind.
  • Ongoing improvements in female participation, especially in formal and skilled sectors, highlight slow but real progress in gender equality in India’s workforce.

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