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Invisible Labour: Unveiling the Hidden Potential of Care Economy
Author:
Dr. Vineetha Prakash
Dr. Vineetha Prakash
  • Research
  • Gender Equality,Decent Work and Economic Growth
  • 27-09-2024
Invisible Labour: Unveiling the Hidden Potential of Care Economy
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“Care” in the English language is defined as “the process of protecting someone or something and providing what that person or thing needs”. There are two types of care work: paid and unpaid. Unpaid care work includes tasks like child care, eldercare, and household chores. Paid care work is the work that nurses, caregivers etc. perform for money (MoF, 2023). It is usually women who perform unpaid care work around the house.

In the context of economic activities, “work” is interpreted as the participation in production activities for pay or profit. Feminist economists over the past decades have pointed out a flaw in this conceptualization of work, where a significant amount of productive labour contributed by women in the domestic sphere, such as household and care work, is ignored (Benería, 2003). Such work is not tracked through marketplace transactions, and thus typically excluded from the GDP of a nation. To address such criticism, small yet significant steps have been taken globally over time, such as - (i) broadening the scope of the UN System of National Accounts (SNA)[1] to include the production of goods for own final use; (ii) the practice of creating household production satellite accounts, and (iii) conducting time-use surveys (TUS)[2] to also account for the value of unpaid work done inside homes.

Gender Disparity in Care Work

Care has historically been perceived as a 'natural' obligation of women, leading to a disproportionate distribution of caregiving costs predominantly burdening women. These costs include missed opportunities in education, work, income, political engagement, and recreational activities (Kottegoda & Peiris, 2024). The unequal burden of care work is also a contributor towards the low Female Labour Force Participation Rate (FLFPR) across the world, including India. Studies indicate that an extra hour of caregiving per day diminishes women's labour market involvement by 20%, with no such impact on males (Sinha et. al, 2024). The Time-Use survey data (2019) in India shows that the time spent by working-age women as well as women in paid employment on care activities is significantly higher than the time spent by men. At the same time, Periodic Labour Force Surveys (PLFS) over the past years have been showing an increase in the Female Labour Force Participation Rate (FLFPR) as well as female Worker Population Ratio (WPR) in the rural as well as urban areas in the country.

These statistics reveal a notable paradox: a persistent gender disparity in the allocation of unpaid care work with women shouldering a greater burden, contrasted with the rising involvement of women in the labour force. This has led to women facing challenges such as the “motherhood employment penalty”[3] which threatens to further widen gender gaps, placing limitations on women’s decision-making power within households, and limiting their overall enjoyment of human rights. Gender disparities in the workplace will worsen if present inadequacies in care work and its quality are left unaddressed, leading to a serious and unsustainable global care crisis. This will be an impediment to a nation’s progress towards achieving SDG 5.

Decent Care Work - A Norm, not an Exception

The 5R Framework for Decent Care Work proposed by ILO proposes integrated strategies to achieve decent work in the care economy. According to this framework, unpaid care work should be recognized, reduced and redistributed; and paid care work should be rewarded through adequate remuneration in accordance with the principle of equal pay for work of equal value, and there should be proper representation of care workers through social dialogue and collective bargaining rights. This framework is aligned with SDG 8 and the decent work agenda, and holds the potential to mitigate care-related inequalities, address the barriers preventing women from entering paid work, and improve the conditions of all care workers and the quality of care. Adopting the 5R framework into care policies can ensure a decent care work environment for the future care workforce.

Leveraging the Economic Value of the Care Sector

Care work, both paid and unpaid, is a crucial dimension of human, social and economic well-being and sustainable development. The Economic and Social Commission for Asia and the Pacific (ESCAP) defines the care economy as “paid care work and unpaid care work provided by people as part of human survival, welfare, and reproducing the labour force.”According to the ILO, the care economy consists of policies and regulatory frameworks, services, infrastructure, institutions, financing mechanisms, and social standards that govern the provision of care and support throughout the life-course.

The economic value of women’s unpaid domestic and care work in India ranges between 15% - 17% of GDP, as per a recent policy brief by CII for the Ministry of Women and Children Development[4]. Care economy encompasses many services such as child care, elder care, long-term care for highly dependent persons, domestic work, and early childhood education. Investing in the development of care infrastructure and care services could help develop India’s economy in three ways - addressing the gender disparities in care and domestic work; creating jobs; and enhancing the female labour force participation rates (FLFPR).

The care economy is expanding as the need for childcare and elder care is increasing across the world. In India, care needs are expected to grow significantly over the next 25 years due to an ageing population. According to the United Nations Population Fund (UNFPA), as of 2022, 25% of India's population consists of children aged 0-14 (~ 360 million people), and 10% is aged 60 and above (~ 147 million people). By 2050, the proportion of children is projected to decrease to 18%, while the share of elderly individuals will rise to 20.8%. This shift indicates a significant increase in the number of people needing care by the year 2050 (MoF, 2023). On the other hand, ILO predicts that investments in the care services sector are likely to generate 475 million jobs globally by 2030. Thus, the provision of reliable and affordable child care and elder care facilities and formulation of appropriate public policies and implementation strategies in this regard is the need of the hour.

The Way Forward

The Economic Survey 2023-24 of India report includes a few recommendations regarding the strategic reforms and policy interventions that could help build a robust care economy in the country. These suggestions are based on the 5R framework and included in the ‘Resolution concerning decent work and the care economy’  that was passed during the International Labour Conference in June 2024. The suggestions include:

  • Setting up a dedicated Skill Council for care services to develop frameworks and provide skill training for the care sector employees.
  • Public-Private Partnerships (PPP) to set up care infrastructure (e.g., daycares) for child and elder care.
  • Establishing regulatory mechanisms and standardised rating systems to define and maintain minimum quality standards of care services like childcare centres and elderly homes.
  • Partnering with community-oriented and civil society organisations (CSOs) for financial and operational support.
  • Subsidization of care services.
  • Adopting the self-help group framework to set up childcare services and capacity-building programmes for care workers.
  • Collaborating with local administrations and community groups to envision sustainable and quality care services.
  • Utilising initiatives like Start-up India to promote launching and expanding commercial and community-oriented models of childcare services for women in the informal sector.
  • Support for parental leave policies

In summary, the care economy has the potential to play a crucial role in India’s journey toward becoming a developed nation by 2047. Strengthening care infrastructure can not only boost women's participation in the workforce, but also present a unique opportunity for women-led businesses and employment in the care sector. Tackling the imbalance of unpaid care responsibilities through accessible and affordable services is essential for empowering women and improving their socio-economic status. The coordinated efforts from both the public and private sectors are required to invest in the care economy, help close gender gaps, and promote inclusive development. The proposed strategies are in line with recommendations put forth by international agencies such as the ILO, and adopting them can place India at par with other developed/developing economies who have similar frameworks in place. This approach can outline a clear path toward addressing gender disparities and ensuring decent work opportunities for future care workers. Indian researchers should focus their efforts on carefully examining the current regional landscape of care infrastructure, identifying gaps, and formulating implementation models for the strategic reforms proposed by policymakers.

 

[1] System of National Accounts (SNA) is a framework for efficiently organizing economic information. The SNA provides concepts, definitions, classifications, and accounting rules to help create an extensive framework for evaluating production, investment, income, and the inventories and flows of both financial and non-financial assets in the economy.

[2]  Time Use Survey (TUS) enables the measuring of time spent by individuals on different activities. The primary objective of TUS is to measure participation of men, women and other groups of persons in paid and unpaid activities.

[3] Motherhood penalty: The price women pay for having children while they are in the workforce. Mothers in the workforce are statistically less likely to be chosen for new roles and promotions, and likely to earn lower salaries (Pinot,I. 2024).

[4] CII & Nikore Associates. (2024). Formulating a Strategy for India’s Care Economy: Unlocking Opportunities. https://static.pib.gov.in/WriteReadData/specificdocs/documents/2024/mar/doc202435319501.pdf

 

References

Benería, Lourdes (2003). Gender, Development, and Globalization: Economics as If All People Mattered. New York: Routledge.

CII & Nikore Associates. (2024). Formulating a Strategy for India’s Care Economy: Unlocking Opportunities. https://static.pib.gov.in/WriteReadData/specificdocs/documents/2024/mar/doc202435319501.pdf

ESCAP, U. N. (2022). How to Invest in the Care Economy: A Primer. https://www.unescap.org/kp/2022/how-invest-care-economy-primer%0Ahttps://app.overton.io/document.php?policy_document_id=unescap-045dafc42a649780573573a334a79ceb

Household Production | U.S. Bureau of Economic Analysis (BEA). (n.d.). https://www.bea.gov/data/special-topics/household-production

ILO (2018). Care work and care jobs for the future of decent work. https://www.ilo.org/sites/default/files/wcmsp5/groups/public/@dgreports/@dcomm/@publ/documents/publication/wcms_633135.pdf

ILO. (2024). Resolution concerning decent work and the care economy: International Labour Conference – 112th Session, Geneva, 2024. International Labour Organization.

Pinot, I. (2024, June 14). The motherhood penalty, explained. Fortune Recommends. https://fortune.com/recommends/banking/the-motherhood-penalty/

Kottegoda, S., & Peiris, P. (Eds.). (2024). Working Hours: Exploring Gender Dimensions of Unpaid Care Work in Sri Lanka. Colombo, Sri Lanka.

MoF. (2023). Economic Survey. Economic Survey, 1–414. https://www.taylorfrancis.com/books/9781136513947

Press Release:Press Information Bureau. (n.d.). Retrieved September 26, 2024, from https://pib.gov.in/PressReleasePage.aspx?PRID=1967291

Press Release:Press Information Bureau. (n.d.). Retrieved September 26, 2024, from https://pib.gov.in/PressReleasePage.aspx?PRID=2057970

Sinha, A.; Sedai, AK; Rahut, DB, Sonobe, T. (2024). Well-being costs of unpaid care: Gendered evidence from a contextualized time-use survey in India. World Development, 173, ISSN 0305-750X. https://doi.org/10.1016/j.worlddev.2023.106419

 

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