Over 89 million urban Indian women still out of labour market in 2023-2024

Despite women’s employment in urban India jumping 10% in six years (2017-18 to 2023-24), more than 89 million urban Indian women are still out of the labour market in 2023-2024, according to a white paper launched by Great Lakes Institute of Management, Chennai, on the occasion of International Women’s Day 2025. This data (89 million) is higher than the population of Germany, France, or the UK, and triple of Australia, the white paper titled India’s Gender Employment Paradox mentioned.

The report highlights the evolving landscape of women’s unemployment in urban India and also warns of pressing challenges, including the underutilisation of educated women’s skills and the looming risk of a diversity backlash. As per the report, “India is failing to utilise the skills of over 19 million graduate-educated urban women due to personal choices or constraints from social norms: highlighting a critical waste of educational investment. Factors such as caregiving responsibilities, lack of flexible work arrangements, and commuting challenges, continue to prevent many highly qualified women from fully participating in the economy. Meanwhile, young male unemployment in urban India outpaces women’s (10% vs 7.5% for ages 20-24) in a concerning trend.”

Suresh Ramanathan, Dean at Great Lakes Institute of Management, Chennai says, “It creates a risk of diversity backlash if quality job creation doesn’t accelerate to accommodate both genders. The report cautions that if quality job creation remains sluggish, rising female employment alongside male joblessness may trigger societal resistance to workplace diversity since men must earn as per the existing social norm.”

Another important aspect highlighted in the findings is that gender gaps persist even in highly educated households. Even among dual-income, highly educated couples, gender disparities remain stark. In 62% (sample size 165) of such families, husbands earn more, despite equal educational qualifications. Additionally, wives continue to take on the primary responsibility for household work in 41% of homes, compared to just 2% of husbands. Meanwhile, the balance remains elusive for urban mothers with access to remote work—86% report spending up to three workday hours on childcare while working. Yet only 44% feel they have adequate support. This reinforces the need for stronger workplace policies that acknowledge and address the realities of working mothers.

Vidya Mahambare, Professor of Economics & Director (Research and Fellow Program in Management), Great Lakes Institute of Management, said, “While women’s workforce participation in urban India is rising, it is not yet translating into true gender parity in earnings, career growth, and domestic responsibilities. To drive real change, first, we need more employment opportunities for all. Second, we need structural reforms in childcare policies, flexible work arrangements, and a shift in societal norms that continue to burden women disproportionately.”