Why in the News?

• The Periodic Labour Force Survey (PLFS) 2025 shows higher wage growth for women than men, but persistent gender wage inequality.

What’s in Today’s Article?

• Gender Wage Gap (Definition, Causes, Significance, etc.)
• News Summary (PLFS 2025 Data, Employment Levels, Employment Structure, Market Trends, etc.)

Gender Wage Gap in India

• The Gender Wage Gap refers to the difference in earnings between men and women for similar work or across sectors.
• In India, this gap reflects structural inequalities in employment opportunities, skill access, and labour market participation.
• Nature of the Wage Gap

• Women earn less than men across all job categories.
• The gap varies by type of employment, such as salaried jobs, casual labour, and self-employment.
• Informal sector dominance and occupational segregation worsen the disparity.

• Causes of Wage Inequality

• Lower female labour force participation.
• Concentration of women in low-paying and informal jobs.
• Limited access to education, skills, and capital.
• Social norms and unpaid care responsibilities.

• Significance
  • Reducing the gender wage gap is essential for inclusive economic growth.
  • It enhances household incomes, boosts productivity, and improves gender equality outcomes.

News Summary

• The PLFS 2025 data presents a mixed picture of progress and challenges in India’s labour market, particularly with respect to gender-based wage disparities.
• Employment Levels
  • About 61.6 crore people were employed in India in 2025.
  • Male workers: 41.6 crore.
  • Female workers: 20.0 crore.
  • This indicates a significant gender gap in overall employment levels.

• Higher Wage Growth for Women
  • According to the data, women’s wages grew faster than men’s across all job categories in 2025.

• Salaried jobs: Women’s wages grew by 7.2% compared to 5.8% for men.
• Self-employment: Women’s earnings rose by 8.8%, slightly higher than men’s 8%.
• Casual labour: Women’s wages increased by 5.4%, while men’s wages declined marginally by 0.2%.
• This indicates a positive trend in wage growth for women, suggesting gradual improvements in labour market conditions.

• Persistent Wage Inequality
  • Despite faster growth, the wage gap remains substantial.
  • In salaried jobs, women earned only 76% of male earnings.
  • In casual labour, women earned 69% of male wages.
  • In self-employment, women earned just 36% of what men earned.
  • This highlights that higher growth rates are not sufficient to bridge the existing disparity.

• Changes in Employment Structure
  • The survey also shows improvements in the nature of employment.
  • The share of women in salaried jobs increased to 18.2% in 2025 from 16.6% in 2024.
  • Self-employment among women declined, indicating a shift toward better-quality jobs.
  • Casual labour participation also increased slightly.
  • Salaried jobs are considered more secure as they provide social security benefits and a stable income.

• Overall Labour Market Trends
  • The broader labour market indicators also show gradual improvement.
  • Rural unemployment declined to 2.4% from 2.5%.
  • Urban unemployment fell to 4.8% from 5%.
  • Youth unemployment declined to 9.9% from 10.3%.

• However, female youth unemployment increased slightly, indicating persistent gender-specific challenges.

• Labour Force Participation
  • Labour force participation trends present a mixed picture.
  • Rural LFPR declined slightly to 62.8%.
  • Urban LFPR remained stable at 52.2%.
  • A decline in LFPR suggests that fewer individuals, especially in rural areas, are actively seeking employment.

• Informal Sector Concerns
  • The data also reflects slowing momentum in the informal sector.
  • Wage growth in the informal sector was only 3.9% in 2025.
  • Job creation slowed significantly, with fewer establishments being added.
  • Since a large proportion of women are employed in the informal sector, this has important implications for gender equality in earnings.