Unpaid Labor

Syllabus: Economics

Source: TH

Context: The paper “Valuation of Unpaid Household Activities in India” by Sahoo, Sarkar, and Kumar sheds light on the economic significance of unpaid household work, particularly the disproportionate burden borne by women.

Unpaid work and India’s status:

• High burden on women: Indian women spend an average of 36 hours per week on unpaid domestic work, compared to 16 hours for men.

• Major contributor to economy: Unpaid work in India contributes approximately ₹22.7 lakh crore, around 7.5% of GDP.

• Labor force gap: Women outside the labor force spend over seven hours daily on unpaid work, limiting their ability to participate in paid employment.

Comparison with global trends:

• Global perspective: Unpaid work accounts for between 10% to 60% of GDP worldwide, varying significantly across countries.

• Examples: APEC member economies estimate unpaid work at 9% of GDP; in Australia, it represents up to 41.3%, while it is only 5.5% in Thailand.

• SDG integration: Recognizing unpaid labor aligns with UN SDG 5, which promotes gender equality and values unpaid care and domestic work.

Economic value of unpaid work in India:

· Monetary valuation: Estimated at ₹49.5 lakh crore (24.6% of GDP) using the Gross Opportunity Cost method and ₹65.1 lakh crore (32.4% of GDP) using the Replacement Cost method for 2019–20.

· Pandemic impact: During COVID-19, the value rose to 27.2% (GOC) and 42.3% (RCM) of GDP, reflecting increased household contributions

Consequences of unpaid work:

• Gender inequality: Disproportionate unpaid work for women perpetuates gender disparity, restricting women’s financial independence and professional growth.

• Economic underutilization: Excluding unpaid work from GDP undervalues substantial economic contributions, leading to an incomplete view of national productivity.

• Reduced workforce participation: High unpaid workload limits women’s entry into the formal labor market, affecting overall labor force productivity and economic growth.

• Mental and physical health impact: The burden of unpaid work can lead to stress, burnout, and negative health outcomes for those disproportionately responsible for it.

• Policy blind spot: Without quantification, unpaid work remains unaddressed in policy-making, leaving a significant economic and social issue unresolved.

New Zealand’s Wellbeing Budget Case Study: New Zealand’s 2019 Wellbeing Budget emphasizes citizen well-being alongside economic growth, targeting mental health, child welfare, and gender equity. By accounting for unpaid and domestic labor in policy, it promotes a holistic approach to development, balancing economic and social welfare

Way ahead:

• Policy recognition and inclusion: Develop frameworks to recognize and account for unpaid work in national economic indicators, acknowledging its economic value.

• Redistribution of domestic labor: Encourage shared domestic responsibilities to address gender disparities, supported by public awareness and educational initiatives.

• Enhanced data collection: Conduct frequent and comprehensive Time Use Surveys to obtain accurate data on unpaid labor and support evidence-based policymaking.

• Supportive services: Introduce affordable childcare, eldercare, and family support services to ease the unpaid workload on primary caregivers, mostly women.

• Financial support mechanisms: Consider direct or indirect support, such as tax credits or social security benefits for primary caregivers, to offset unpaid work contributions.

Conclusion:

Integrating unpaid labor into economic assessments would not only highlight the economic value of women’s contributions but also foster more equitable policies, supporting India’s growth and aligning with global goals for sustainable development.

Insta Links:

• Issues-related-to-women’s-unpaid-work

• Distinguish between ‘care economy’ and ‘monetized economy’. How can care economy be brought into a monetized economy through women empowerment? (UPSC-2023)