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  2. Economic and Social Development

India's Underemployment Crisis for Women

Published on: 14-Sep-2025

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India's Underemployment Crisis for Women

Article Summary

The article discusses the critical issue of underemployment among educated women in India, despite rising female literacy and increasing enrollment in higher education. While the female employment rate has increased from 22% in 2017-18 to 40.3% in 2023-24 according to recent Periodic Labour Force Survey data, this growth in employment rates does not equate to substantial job quality. Many women are employed in roles that do not reflect their qualifications or potential, illustrating a significant gap between education and employment.

Key Points:

  • Rising Female Literacy and Education: India has seen an increase in female literacy and a record number of women entering higher educational institutes, but many women are still underutilized in the job market.

  • Underemployment: Many women are classified as "employed," yet they often occupy positions that do not require their level of education, resulting in significant underemployment. For example, PhD holders may work as clerks.

  • Employment Statistics: The increase in employment from 22% to 40.3% conceals the reality of underemployment. These statistics are criticized for measuring quantity over quality.

  • Impacts of Underemployment: Underemployment affects women's mental well-being, leading to lower self-esteem, chronic stress, and identity loss. It has been noted that women in corporate roles are three times more likely to seek mental health support than their male counterparts.

  • Economic Consequences: McKinsey estimates closing gender employment gaps could add $770 billion to India's GDP, emphasizing the potential economic benefits of improving job quality for women.

  • Household Responsibilities: According to the Union Ministry of Statistics’ Time Use Survey 2024, women spend significantly more time on unpaid domestic work compared to men—approximately four hours and 50 minutes daily, compared to men’s average of 88 minutes.

  • Psychological Challenges: Women have reported feelings of being undervalued and underappreciated in the workplace. A survey participant stated that discrepancies in pay and opportunities between her and her male colleagues persist, highlighting the ongoing gender biases in professional settings.

  • Lack of Representation: Women face a lack of representation in higher positions; in one instance mentioned, there were only four women among 29 faculty members, creating barriers to visibility and opportunity.

  • Need for Social Change: The article argues for a shift in societal attitudes, urging men to contribute more to domestic responsibilities to alleviate women's burdens, thereby facilitating their entry into better employment.

  • Policy Recommendations: The author calls for supportive policies that enable women to transition back into the workforce post-maternity leave, fair promotion systems, and equitable pay to address the root causes of underemployment.

  • Conclusion: The author stresses that addressing underemployment among women is not just a matter of justice but is essential for unlocking the full potential of Indian society and its economy.

The article, published on September 14, 2025, highlights the paradox of educated women in India facing underemployment, reflecting broader societal issues that continue to affect their economic participation and mental well-being.

Key Terms & Concepts

Periodic Labour Force SurveyEmployment statistics source
McKinseyGDP estimate contributor
Indian Academy of Applied PsychologyConference organizer
Time Use Survey, 2024Data source for domestic work
Union Ministry of StatisticsGovernment report issuer

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