India: More Women Working, Fewer Earning Well

As of July 2026, India's women's labor force participation rate (LFPR) has seen a significant rise, reaching 40% by 2025, up from 33.9% in 2022. This increase is largely attributed to government employment programs and growth in rural areas.

However, this upward trend obscures a more complex reality. While rural women's LFPR surged from 37.5% to 45.9% between 2022 and 2025, urban women's participation remained largely unchanged, hovering between 25% and 28%. This is concerning as urban centers are experiencing most of the economic and wage growth in the country.

The quality of jobs is a major concern, with most working women engaged in low-productivity, self-employed roles, predominantly in agriculture. A significant portion, 33% in rural areas, are unpaid family workers. This limits their income and social security benefits.

Earnings also reflect this disparity. Women in salaried jobs earn, on average, Rs 18,353 monthly, 24% less than men. In self-employment, the gap widens significantly, with women earning Rs 6,374 compared to men's Rs 17,914.

Women often enter the workforce after age 30, missing out on prime earning years. Experts emphasize the need for better support for rural women to access urban jobs and for states to create quality employment opportunities closer to their homes.

Initiatives like those by the Udaiti Foundation in Uttar Pradesh have shown that job opportunities exist in sectors like logistics and retail, but awareness and mobilization efforts often fail to reach women. Addressing this requires improving childcare, mobility infrastructure, and strengthening support systems to ensure women can advance their careers and contribute fully to economic growth.