Educated but unemployed women

by Mahesh Vyas

The world celebrated International Women’s Day last week on March 8. This, according to the official website is a day to celebrate social, economic, cultural and political achievements of women.

It is perhaps also a time to take stock of where India stands today and where it is likely headed in terms of achievements of women.

Over eight per cent of directors on boards of listed companies were women in 2019-20. More impressively, 64 per cent of listed companies have at least one woman director. Legislation has helped. Only about 3 per cent of unlisted companies’ directors are women and only 11 per cent of unlisted companies have at least one woman director. The Companies Act made it mandatory in 2014 that every listed company and every large unlisted company must have a woman on its board of directors.

But, it is not just legislation. An estimated 1.7 per cent of CEOs of companies in India are women. These numbers are small but they are important. Women like Indra Nooyi of Pepsico and Kiran Mazumdar Shaw of Biocon are iconic and hugely inspiring.

Women have been great thought leaders in India. Aruna Roy, Arundhati Roy, Mira Nair, Aparna Sen, Deepa Mehta, Romila Thapar, Ela Bhatt, earlier Sarojini Naidu, Amrita Pritam and Mahasweta Devi make an impressive though random list of inspiring women. Of course, there are many more.

Over 14 per cent of members of parliament elected in the 2019 Lok Sabha polls were women. This proportion was over 11 per cent in the 2014 elections, nearly 11 per cent in the 2009 elections and 8 per cent in the 2004 elections. The Women’s Reservation Bill proposed in 2008 that sought to reserve 33 per cent of parliamentary seats for women was never passed. But, women continue to make progress even without legislation.

One in five of all IAS officers are women. It could be better but it is better than the representation of women in the judiciary. One in 9 High Court judges are women and only one in 30 Supreme Court judges is a woman.

Numbers matter but, influence is of equal importance. Woman political leaders in India have been very influential. Indira Gandhi, Sonia Gandhi, Mamta Banerjee and Jayalalitha have been, or continue to be big mass influencers.

It is fair to assume that women in India will continue to assume greater positions of power and influence in the coming years. Rising education and inspiration from torch bearers will increase the number and proportion of women CEOs, judges, administrators and political and thought leaders.

The battle on education of women in India was won a decade ago. Fifty per cent of all fresh graduates were women between 2011-12 and 2015-16. In 2018-19, 53 per cent of all fresh graduates were women. The proportion of women in total population is less than half. Yet, more than half the fresh graduates are women.

In spite of this education and the scores of inspiring success stories of women in the corporate and non-corporate world, the average Indian woman is woefully far from being an employed woman. She works hard but, is not employed.

The challenge, it appears, is that Indian society is biased against women working outside their homes. It is the urban regions where the true test for women working outside their homes lies. According to the official Periodic Labour Force Survey, in 2018-19, while 73.7 per cent of urban men participated in the labour markets, only 20.4 per cent of urban women did so. In spite of this very low participation, women faced a higher unemployment rate of 9.8 per cent in urban India, compared to the 7 per cent unemployment rate faced by men.

Why should equally educated women face a higher unemployment than men even though very few women seek employment? Only 18.4 per cent of urban women of 15 years or more of age were employed in 2018-19 according to PLFS. However, 68.6 per cent of urban men in the same age bracket were employed. This is as disturbing as it is intriguing.

CMIE’s Consumer Pyramids Household Survey, which has a far more stringent definition of employment depicts a picture that is far more grim. Only 8.4 per cent of urban women of 15 years or more were employed in 2018-19. This fell to 7.3 per cent in 2019-20 and it is likely to have fallen to less than 6 per cent in 2020-21. In February 2021, the urban female employment rate touched was 5.4 per cent. There is almost no recovery from the pandemic-hit low of 5 per cent in April 2020.

Indian women work a lot. But, their work is predominantly at home in service of other members of their household. Their participation in the labour markets outside their houses, in urban India is very low in spite of their superior education. There are only three cases under which this can happen. Either Indian women are not willing to go out to work or they are not allowed to go out to work or people are not willing to give them work in spite of their education. The second and third cases reflect bias in society and possibly, they cause the first case. Indian women have education, inspiration and perspiration but, not enough employment.

References
1. https://economicoutlook.cmie.com/kommon/bin/sr.php?kall=wshreport&tabcode=001041005005000000&repnum=115232&frequency=M&colno=1
CMIE STATISTICS
Unemployment Rate (30-DAY MVG. AVG.)
Per cent
7.5 +1.4
Consumer Sentiments Index
Base September-December 2015
57.1 0.0
Consumer Expectations Index
Base September-December 2015
58.6 0.0
Current Economic Conditions Index
Base September-December 2015
54.8 0.0
Quarterly CapEx Aggregates
(Rs.trillion) Jun 20 Sep 20 Dec 20 Mar 21
New projects 0.96 1.40 1.16 1.41
Completed projects 0.26 0.73 0.83 0.62
Stalled projects 0.11 0.08 0.31 0.14
Revived projects 0.68 0.29 0.11 0.13
Implementation stalled projects 0.09 0.07 0.15 0.30
Updated on: 21 Apr 2021 8:28PM
Quarterly Financials of Listed Companies
(% change) Jun 20 Sep 20 Dec 20 Mar 21
All listed Companies
 Income -27.7 -6.3 1.6 7.4
 Expenses -27.9 -10.3 0.2 4.6
 Net profit -40.5 47.2 57.6 18.7
 PAT margin (%) 5.2 8.3 8.4 20.6
 Count of Cos. 4,399 4,401 4,372 41
Non-financial Companies
 Income -37.4 -10.5 0.2 8.2
 Expenses -37.7 -14.2 -0.7 6.0
 Net profit -56.0 31.5 54.3 16.7
 PAT margin (%) 4.5 8.1 8.9 20.2
 Net fixed assets 5.9 1.1
 Current assets 0.7 1.9
 Current liabilities -2.7 4.9
 Borrowings 8.3 5.8
 Reserves & surplus 4.2 5.9
 Count of Cos. 3,265 3,266 3,252 29
Numbers are net of P&E
Updated on: 21 Apr 2021 8:28PM
Annual Financials of All Companies
(% change) FY19 FY20 FY21
All Companies
 Income 13.3 0.0 -6.6
 Expenses 13.6 0.0 -7.8
 Net profit 15.2 -9.5 1.7
 PAT margin (%) 2.1 2.2 10.4
 Assets 9.6 7.8 0.7
 Net worth 8.5 4.4 -0.1
 RONW (%) 3.8 3.6 11.7
 Count of Cos. 30,747 29,337 38
Non-financial Companies
 Income 13.9 -1.9 -7.0
 Expenses 14.1 -1.7 -8.3
 Net profit 21.6 -19.8 2.2
 PAT margin (%) 2.9 2.5 11.0
 Net fixed assets 5.5 8.9 -0.6
 Net worth 8.1 2.1 -0.2
 RONW (%) 6.4 5.1 13.3
 Debt / Equity (times) 1.0 1.0 0.1
 Interest cover (times) 2.3 2.0 23.1
 Net working capital cycle (days) 72 70 37
 Count of Cos. 24,611 23,388 30
Numbers are net of P&E
Updated on: 19 Apr 2021 9:56PM