The jobless rate for women in urban areas worsened during the first quarter (April-June period) of the current financial year, indicating increased barriers for women seeking employment, according to an analysis of the latest quarterly Periodic Labour Force Survey (PLFS).
The data shows that the unemployment rate for women in urban areas increased to 9 per cent in Q1 from 8.5 per cent in the preceding quarter. This rise in unemployment was accompanied by a decline in the female labour force participation rate, which fell to 25.2 per cent from 25.6 per cent during the same period.
This implies that despite fewer women looking for work, the labour market was not able to create enough jobs for them.
The data also reveals that the decline in jobs was primarily due to a decrease in the self-employment category, which includes those working as own-account workers or as household help.
The share of women working as self-employed declined to 40 per cent in Q1 from 41.3 per cent in the preceding quarter, while the share of women working as casual labourers also decreased to 6 per cent from 6.5 per cent during the corresponding period.
“PLFS data shows the extent of women looking for work and who were able to find work during this time. It covers both the formal and informal sectors of the economy. A fall in the share of women working as own-account workers primarily implies that opportunities in the vast informal sector are declining, as seen in the latest unincorporated enterprises data as well,” said a labour economist, requesting anonymity.
Meanwhile, the latest data released by the Employees’ Provident Fund Organisation (EPFO) on Tuesday showed that the share of women in the formal sector saw an increase during this quarter compared to Q1 FY24.
Of the total 3.01 million new subscribers who joined the social security organisation during the first quarter, the number of women subscribers increased to 27.3 per cent (821,000), compared to 26.4 per cent (784,600) in the same quarter last fiscal year.
“The formal sector is quite small in the country, and the EPFO reflects a very small proportion of the labour market. The number of fresh women subscribers may have increased under EPFO, but that is not reflective of the true picture. Anyway, the labour force participation for women is lower in urban areas,” the labour economist added.
First Published: Aug 23 2024 | 8:02 PM IST
