India's Youth Employment Crisis: Only 18% Young Women in Paid Work

A new white paper reveals a severe gender disparity in youth employment, with only 18% of young Indian women aged 20-29 in paid work compared to 79% of young men. The study finds female employment is critically low in several large states, with Bihar at just 6.9%. It highlights that women in formal jobs can match men's work intensity, but structural barriers like housing and safety prevent participation. The report recommends interventions to remove these constraints and accelerate formalization to harness India's demographic potential.

Key Points: India's Gender Gap: 18% Young Women vs 79% Men in Paid Work

  • Stark 18% vs 79% gender gap in youth employment
  • Female participation as low as 6.9% in some states
  • Formal-informal divide severely impacts women's work hours
  • Employed women face a 9.5-hour total workday with unpaid care
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Only 18% of young women in India in paid work vs 79% of young men: Report

A new report reveals a stark gender gap in youth employment in India, with only 18% of young women in paid work compared to 79% of men, threatening the demographic dividend.

"India cannot speak of a demographic dividend if half its young women are unable to participate in paid work. - Gangapriya Chakraverti"

New Delhi, March 6

Only 18 per cent of young women in India aged 20-29 are in paid employment compared to nearly 79 per cent of young men, despite achieving near gender parity in higher education. A new white paper by the Centre for Finance & Economics Research at Great Lakes Institute of Management reveals that fewer than half of young adults are employed, with women's low participation acting as the primary driver of interstate variation.

The study, titled 'Young Adults at Work in India: Intense Work for Some, Insufficient Jobs for Many', draws on data from India's nationwide Time Use Survey (TUS) 2024.

The report reveals that in several large states, fewer than one in ten young women are employed. Female employment participation is particularly low in Bihar at 6.9 per cent, Uttar Pradesh at 9.8 per cent, Uttarakhand at 11.2 per cent, and Jammu & Kashmir at 12.2 per cent. While higher participation is observed in Telangana at 31.3 per cent and Chhattisgarh at 26.5 per cent, even in these states, less than one in three young women is employed.

"India cannot speak of a demographic dividend if half its young women are unable to participate in paid work. Industry has a responsibility to look beyond hiring and examine the structural constraints: housing, mobility, safety, that determine whether women can even enter the workforce," says Gangapriya Chakraverti, India Site Head & Managing Director, Ford Motor Company.

The Great Lakes White Paper finds that the formal-informal divide affects women far more severely than men. Young men's daily work hours change by only 28 minutes between formal and informal enterprises.

For young women, work hours collapse from 6 hours 50 minutes in formal enterprises to 4 hours 53 minutes in informal ones. However, in Delhi, Tamil Nadu, and Telangana, the gap between men's and women's formal-enterprise work hours falls below 30 minutes.

Professor Debasish Sanyal, Director, Great Lakes Institute of Management, states, "When young women get access to formal jobs in states with more job opportunities, their work intensity matches men's almost exactly. The policy implication is clear: the binding constraint is not supply - it is the ecosystem of housing, transport, safety, and institutional support that determines whether women can participate."

The study also documents an invisible burden where young women in paid work face a total work time of 9 hours 31 minutes once unpaid care is included, exceeding men's total by over 90 minutes.

Vidya Mahambare, Union Bank Chair Professor of Economics and Chairperson, CFER, notes, "India has nearly 200 million young adults aged 20-29 who will remain in the working-age group for at least three decades. Our findings show that barely half are in paid work, and among those who are, there is a disturbing dual reality - excessive hours for some, and insufficient work for many, with young women who are employed, facing dual burden of work," said one of the authors of the papers.

To address these gaps, the white paper recommends four interconnected interventions:

First, removing binding constraints to women's employment by reducing housing, transport, and safety barriers, and expanding institutional housing such as working women's hostels.

Second, accelerating formalisation through simplified regulatory compliance, portable social protection, and rural formal-enterprise infrastructure.

Third, addressing overwork and spatial mismatch by co-locating affordable housing with employment centres and investing in public transport with safe last-mile connectivity.

Fourth, tackling underemployment through expanded market linkages, structured pathways from informal to formal work via skill certification, and the integration of time-use metrics into national employment monitoring.

- ANI

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Reader Comments

R
Rohit P
The numbers are shocking - 79% men vs 18% women! We are wasting half our talent pool. The focus needs to shift from just "creating jobs" to creating an ecosystem where women can actually take those jobs. Safety and transport are not side issues, they are the main issue.
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Sarah B
As an expat working here, the contrast is stark. In my home country, female workforce participation is much higher. India has brilliant, educated young women. The binding constraints mentioned - housing, safety, last-mile connectivity - are spot on. Companies need to step up beyond just hiring quotas.
A
Arjun K
Respectfully, while the data is concerning, we must also acknowledge cultural factors in states like UP and Bihar. It's not just about infrastructure. Mindsets need to change in families to allow daughters to work outside. Education is the first step, but social acceptance is the bigger hurdle.
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Nisha Z
The "invisible burden" of unpaid care work is everything! After my paid job, I come home to cook, clean, and care for family. Men don't share this load equally. Until we address this at home, women will always be exhausted and at a disadvantage. It's a national conversation we need to have.
K
Karthik V
Good to see Telangana and Chhattisgarh performing relatively better. Shows that state-level policies matter. The four-point plan seems practical, especially portable social protection and skill certification for informal workers. Hope policymakers are listening. Our demographic dividend is at risk.

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