Women’s employment in the informal sector

Author: Foqia Sadiq Khan

Pakistan has recently entered into its 13th IMF programme since 1988. Engagement with the IMF is euphemistically called the “structural adjustment”; it is actually the onset of the neoliberal economic agenda. Such ‘structural adjustment’ in the past has invariably had a bad impact on the poor. Though, now we have well-designed and effective social protection programmes for the poor (particularly the poor women) and the marginalized; yet it might be worth exploring the larger issue of poverty and women’s employment in the informal sector. When the incidence of poverty increases, more people (including women) are going to be pushed into the informal work. We refer to some literature (mainly Tahir and Tahir 2012; also Alavi 1988; and for labour force statistics – Pakistan Bureau of Statistics, 2019).

Hamza Alavi (1988) rightly analysed that women’s active participation in the labour force would lead to the redefinition of the “social values and norms” of the society at large. There is division between various categories of women; a few who can take up more white-collar salaried jobs, and a majority of women who work for wages, often as home-based workers and become a ‘cheap source of labour’.

According to a Pakistan Bureau of Statistics’ 2019 document based on the latest Labour Force Survey in the country; men’s and women’s share in the informal sector employment (total 71.4%) is almost the same: 71.5% for men and 70.7% for women. In terms of women and men share in the ‘vulnerable employment’ sector-wise, there are proportionately more women who take up ‘vulnerable employment’ than men. The overall share in the ‘vulnerable employment’ for both sexes is 55.6%; men’s share is 51.5% whereas women’s share is 70.9%; considerably higher than men’s. In terms of sectors, fishing and agriculture are the two most hazardous sectors for women; though women-to-men ratio is substantively higher in fishing, and it is almost equal in agriculture.

The social, political, and economic factors are inter-linked and the macro/national policies have an impact at the households level. Therefore, an integrated and inclusive policy approach will help to work towards better working conditions for women’s employment

Although, Tahir and Tahir (2012)’s paper has a larger focus investigating whether the informal sector employment is marginal to growth in the formal sector; we are going to refer to a few parts of this work that deal with women’s employment, particularly in the informal sector. While referring to some other literature; this paper states, “Neoliberal agenda was market oriented and gender neutral. It never paid attention to family and the position of women in a family. In actual practice, gender neutrality is ‘implicit masculinization of these macro-structural models'”. Further on, “‘international institutions and trade agreements rarely take the gendered nature of globalization into account'” and ‘The market is gender insensitive and does not have a human face’. Neoliberal policies backed by the Western countries have disproportionate impact on men and women and their impact is worse for women compared to men. Such policies exacerbate gender inequalities, particularly amongst the poor. Women’s employment in the informal sector works as “shock absorbers”.

Another important issue highlighted by Tahir and Tahir (2012) is the ‘invisibility of women workers in the national statistics and in the policy discourse’. It takes place both due to gender-based prejudice emanating from socio-cultural factors, as well as due to technical incompetence issues that leads to the flawed definitions, sample size and data collection. It leads to under-reporting of women’s work that is not properly registered and recognized. There are numerous reasons for this under-reporting of women’s work and their ‘invisibility’ in the national data and policy documents; women often are less likely to report themselves as self-employed, and they often also do not own the informal enterprises and men do. However, when there is low economic growth as the result of neoliberal market-oriented reforms, it leads to an increase in the informal sector employment.

Therefore, what is required is to take a multi-pronged approach to deal with women’s employment in the informal sector. To begin with, efforts should be made to accurately record women’s work in the informal sector. Once we have more accurate national statistics and national survey designs are much less gender-blind; only then one can move towards more inclusive employment opportunities. Of course, as has been discussed in these pages earlier as well, women’s access to education and trainings would also help them to acquire the much-needed human capital to improve their work conditions. However, women’s work in the informal sector cannot be separated from the overall national growth with a human face. Unless, there is sustainable economic growth, opportunities for better work conditions may remain limited. There is of course also the need to better regulate the private sector. Sustainable growth will not necessarily translate into better working conditions for women (and men). The labour regulations need to effectively enforced. Overall, the social, political, and economic factors are inter-linked and the macro/national policies have an impact at the households level. Therefore, an integrated and inclusive policy approach will help to work towards better working conditions for women’s employment.

The writer is an Islamabad-based social scientist, presently visiting LahoreThe writer is an Islamabad-based social scientist, presently visiting Lahore

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