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How India's Care Economy Can Boost Women Workforce Participation

In recent years, the conversation around women’s workforce participation in India has gained significant momentum. One crucial aspect of this discussion that often remains underexplored is the care economy. Care economy involves the care given at home and the care workers with a salary. It is, therefore, needed for the smooth functioning of households and thus, the entire society. However, its potential to significantly boost women’s workforce participation in India is often overlooked. This article delves into how investing in and formalizing the care economy can be a game-changer for bridging the gender gap in India’s labor force.

Illustration showing women benefiting from India's care economy

Understanding the Care Economy

The care economy is the one describing the different aspects of the system that are set to the care of the people, whether it is in monetary terms or not. This includes roles like childcare providers, eldercare workers, domestic helpers, and health care professionals. In addition, unpaid care work, which includes the likes of cooking, cleaning, and taking care of family members is an enormous part of this economy, which is hardly visible. These actions mean much to the health of both individuals and communities, yet they get almost no recognition or remuneration for them.

In India, the care economy remains largely undervalued, with much of the work performed by women going unnoticed in official economic measures. It's essential for women to have money. Such a situation contributes to the continuous growth of a society! India's formalization and investment in the care economy can bring the country to the road of creating millions of jobs, decreasing gender disparities, and thereby, increasing economic growth.

The Current State of Women’s Workforce Participation in India

India’s female labor force participation rate (FLFPR) has been a point of concern for policymakers and economists alike. Just 30% of Indian women have jobs. The percentage is below the world average of 47.8%. The gender gap in the labor market, which is of prime importance in promoting women's economic empowerment, is also a drag on the country's economic gains.

The low FLFPR in India can be attributed to several factors, including cultural norms, lack of access to education and employment opportunities, and the burden of unpaid care work. Women in India have often been faced with the problem of having to take on multiple roles at once like a caretaker wife and in some cases being the breadwinner which constitutes a barrier for them to formal employment. This dynamic not only restricts their economic participation but also perpetuates the cycle of gender inequality.

Unpaid Care Work: A Major Barrier

One of the very biggest reasons for women's lack of participation in the labor market in India is the attempted care work.  On average, Indian girls devote around 5.6 hours on unpaid work within the family circle, while men only contribute half an hour. This ‘time poverty’ leaves many women with little energy or opportunity to engage in paid employment. The equality of time spent on unpaid care work is a clear example of the ingrained in the culture gender norms which expect women to assume caregiving responsibilities more than men.

The unpaid care work is vital for the households and communities' survival, but it is seldom recognized in economic terms. If a monetary value were assigned to unpaid care work in India, it would account for approximately 15% to 17% of the country’s GDP. One reason for this is that the work done outside the formal economy is often unrecognized and unmeasured.

For women, the access of the economic domain is an important indicator of their empowerment. The women, mainly doing the unpaid care job, get excluded from formal jobs and thus they do not have income, social security, and career advancement opportunities. This affects women's work. Such a reason is a big gap between men and women when it comes to getting jobs.

The Potential of the Care Economy

Investing in the care economy presents a significant opportunity to boost women’s workforce participation in India. By formalizing care jobs and providing adequate compensation and social security benefits, millions of women could transition from informal, unpaid work to formal, paid employment. The result would not just be the raising of their economic position, but also the higher incomes of the households and curbing of poverty would be the reasons for the overall economy growth.

The care economy has room to grow significantly and attract more occupations as may especially be the case for women.  And as noted by the International Labour Organization (ILO), India's care economy can create 11 million jobs by 2030 if the public investment is directed appropriately. What’s more, nearly 70% of these jobs could go to women. This could be a significant step towards closing the gender gap in India’s workforce.

Formalizing the care jobs will also be the way that care workers get better working conditions, skill development, and professional recognition. Currently, many care jobs in India are low-paying and lack social security benefits. Through the investment in the care economy, the government and private sector can be able to afford good wages, appropriate working conditions, and career advancement opportunities to these job positions.

Case Studies and Global Examples

To understand the potential impact of investing in the care economy, it’s helpful to look at examples from other countries that have successfully leveraged the care economy to increase women’s workforce participation. Scandinavian countries, particularly, throw lessons on this matter.

The Finnish government has carried out the initiatives that encourage families with small kids like offering financial support for keeping a child at home and granting paid paternity leave to fathers to take up caregiving duties. These policies have enabled more women to participate in the workforce while balancing their caregiving duties. Finland also provides support for those caring for elderly or disabled relatives, offering monthly stipends to caregivers. These initiatives have not only increased women’s workforce participation but also improved the overall quality of care services.

Likewise, other Scandinavian countries have poured money into childcare and eldercare services, assuming care economy as a fundamental part of their social and economic infrastructure. Money put into jobs for women has increased number of them working and made more fairness between men and women at work.

India can draw inspiration from these examples to develop its own strategies for boosting women’s workforce participation through the care economy. While replicating such models in India presents challenges due to the country’s vast population, wealth disparities, and cultural norms, targeted investments in the care economy could yield significant benefits.

Challenges and Roadblocks

Despite the potential of the care economy, several challenges must be addressed to realize its full potential in India. One of the major difficulties is the cultural norms that reinforce the gender roles in the Indian society.

Gender norms that are rooted in tradition are usually the ones that take care of the women and thereby hinder them to pursue formal employment. Changing these norms requires not only policy interventions but also societal shifts in attitudes towards gender and caregiving.

Another challenge is the lack of infrastructure and public investment in the care economy. Currently, India’s public spending on the care economy is less than 1% of its GDP. This is significantly lower than in countries like Finland, where substantial public investment in care services has been a key factor in increasing women’s workforce participation. A way to bridge the gender gap in the labor market is to increase the contribution of the care services sector in India, which includes childcare, elderly care, and other required assistance services.

Additionally, the informal nature of care work in India presents a barrier to formalizing the care economy. Many care workers operate in informal settings, without access to legal protections, fair wages, or social security benefits. Formalizing these jobs requires not only regulatory changes but also efforts to provide skill training and professional development opportunities for care workers.

Strategies to Enhance Women’s Workforce Participation

To effectively boost women’s workforce participation through the care economy, India must adopt a multi-pronged strategy that addresses the various challenges outlined above. Here are some key strategies that could help achieve this goal:

  • Public Investment in Care Services: Increasing public investment in care services is crucial for creating more formal, paid care jobs. This means not just making the affordable childcare and eldercare services more available but also facilitating the unpaid caregivers with financial incentives and social security benefits.
  • Skill Development and Formalization: Providing skill development and training opportunities for care workers can help formalize the care economy and improve the quality-of-care services. This could include offering certification programs for caregivers, creating professional standards for care work, and ensuring fair wages and benefits for care workers.
  • Flexible Work Policies: Implementing flexible work policies, such as gender-neutral leave options and remote work opportunities, can help women balance their caregiving responsibilities with paid employment. This might lead to more women entering the job market and staying there after they give birth.
  • Awareness and Advocacy: Raising awareness about the importance of the care economy and advocating for policies that support women’s workforce participation is essential. This can imply the employment of public campaigns to defy the conventional gender roles in the society, as well as the involvement of the companies and politicians in the promotion of gender-inclusive workplace practices.
  • Private Sector Engagement: The private sector can support the care economy across a variety of ways including provision of on-site childcare facilities, extending parental leave benefits, and promoting work-life balance through flexible work arrangements. Investing in the care economy scheme benefits a company through the retention of its employees, their productivity, and a general increase in job satisfaction across all departments.

Conclusion

The care economy holds tremendous potential to boost women’s workforce participation in India. By investing in and formalizing care work, India can create millions of jobs, reduce gender disparities, and drive economic growth. Besides the obstacles that still appear such as the cultural norms, the lack of infrastructure, and the informal care work, the collaborative work of the government, the private sector, and civil society can make the care economy grow.

To achieve this, India must increase public investment in care services, provide skill development opportunities for care workers, and implement policies that support work-life balance for women. By doing so, India can create a more inclusive and equitable workforce, empowering women to contribute to the country’s economic development.

The question is still there: Are we ready to grab this chance? The future of India’s workforce—and the well-being of millions of women—depends on our collective commitment to recognizing and investing in the care economy.

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