Understanding the Gender Gap in the Workforce

Originally appeared on Groundviews, Daily Mirror and Lanka Business Online

By Thathsarani Siriwardana

The issue of female labor force participation in Sri Lanka has remained a subject of discussion for several decades, yet tangible progress in improving it has been elusive. As the country grapples with its most severe economic crisis since gaining independence,it is important to take a hard look at our labour force to maximize its potential in overcoming the economic crisis. 

Sri Lanka is approaching its last stages of its demographic dividend characterized by a significant proportion of its population falling within the working age bracket (typically aged 15-64) in relation to the dependent age categories,the aged and the children. According to the Asian Development Bank, Sri Lanka's working-age population is expected to reach its peak around 2027. This presents a unique opportunity for us to strengthen our economic prospects by using the right socioeconomic policy mix, similar to how the Tiger economies like Singapore, Hong Kong etc. have harnessed their demographic dividends to advance their economic growth. 

Importantly, a substantial portion of this working-age population comprises highly educated and women who are living longer. Hence necessary interventions must be made to harness their economic potential.

Current status of the labour market

According to the 2021 Labour Force Survey, Sri Lanka's total labor force comprises 8.5 million individuals, with 65% of them being male. The overall labor force participation rate (LFPR) in Sri Lanka hovers around 50%, revealing a significant gender gap that has persisted since the early 2000s. As of 2021, the male labor force participation rate in the country stands at 71%, whereas the female labor force participation rate is considerably lower at 31.8%. This enduringly low female labor force participation rate, spanning almost a decade, necessitates increased attention and intervention from the government. It represents an untapped potential within our economy that demands harnessing for the nation's benefit.

When examining the female labor force participation, it becomes evident that a significant proportion of females are employed in the estate sector, constituting 42.6% of the female workforce. In the year 2021, a substantial majority of the economically inactive population were females, accounting for approximately 73.3%. Interestingly, among these economically inactive women, 59.4% cited engagement in household work as their primary reason for not participating in the labor force. This sheds a light on household responsibilities as the main contributing factor, preventing women from entering the workforce.

Education status of the labour market
Sri Lankan women tend to achieve higher levels of education compared to men. However, this educational advantage hasn't  translated into higher levels of participation in the labor force. To illustrate this relationship between labor force participation and education, the chart below provides a clear visual representation of the situation.

This diagram highlights two important points. Firstly, it reveals that a significant majority of women who participate in the labor force (83.2%) possess degrees or higher levels of education. This suggests that women are more likely to apply for jobs that align with their skill set and education level. 

Secondly, it underscores a distinct contrast when it comes to men. Even if men have an education level of grade 5 or below, a substantial portion (65.7%) still actively contribute to the economy. This disparity suggests that women with lower levels of education face greater challenges or barriers when it comes to workforce participation compared to their male counterparts.

This statistic also serves as a clear illustration of the traditional societal norm of men being the breadwinner, which leads to men having higher labor force participation rates, irrespective of their educational levels. On the other hand, women, despite their advanced educational qualifications, may encounter societal pressures or constraints that discourage them from seeking or maintaining employment. Unemployment remains a significant challenge in Sri Lanka, with the highest rates observed among women holding education levels at Advanced Level and above. This represents a substantial untapped pool of potential in the Sri Lankan labor market.

Reasons for low Female Labour Force Participation despite having a high education level 

The low female labor force participation rate in Sri Lanka can be attributed to a range of socioeconomic factors. 

A primary factor that discourages women from actively contributing to the economy is the significant burden of care responsibilities they bear. This care work encompasses a broad range of household tasks, from cooking and cleaning to childcare and caring for the elderly. According to the 2017 Time Use Survey, women spent nearly four hours more per day on unpaid care work and domestic services compared to men. For many decades, there has been a prevailing societal stereotype that women are primarily responsible for managing households, while men are expected to be the breadwinners outside the household. This division of labor is a key reason why women with the qualifications and capabilities to pursue employment opportunities often choose to stay at home, while men even with lower levels of education enter the labor market.

Another significant factor is the existing legal barriers in Sri Lanka. The two prominent legal constraints are restrictions on night-time work and the absence of recognition for part-time employment. While these legal provisions may have initially aimed to protect women, they inadvertently discriminate by limiting their employment opportunities and earning potential. For example IT/BPM sector employment is affected by the 1954 Act which only permits women over the age of 18, to work till 8 pm. The current statutory regimes governing employee rights fail to recognize part time-work. This oversight leads to a reluctance by employers to hire part-time workers as they are entitled to the same benefits as full time workers.

Moreover, the absence of adequate social infrastructure, such as quality child care centers and comprehensive parental leave policies, contributes significantly to the low female labor force participation rate. Presently, in Sri Lanka, approximately 80% of child care centers are privately operated. This situation creates a barrier to accessing quality and affordable child care facilities, making it financially challenging for skilled women to participate in the labor force, as many opt to stay at home to care for their children due to these constraints.

As highlighted in an ILO report the presence of skill mismatch in Sri Lanka's labor market since the early 1970s contributes as another reason. This skill mismatch exists because the country's education system does not adequately prepare graduates with the skills required by the job market. There is a notable disconnect between the courses offered by universities and the competencies needed by the private sector. 

This mismatch also contributes as a reason for the high levels of youth unemployment and the prevalent issue of arts degree holders struggling to find employment. A staggering 43.9% of unemployed graduates possess degrees in the arts. Notably, the majority of arts degree holders are women. This situation underscores a disconnect between the demand and supply within the labor market. It suggests that the current education system is not adequately preparing graduates with the skills and qualifications needed to meet the demands of available job opportunities.

Addressing these barriers are vital to improving the labor force participation rates, especially among women.

Policy Recommendations

• Recognise part time work under the existing statutes and provide needed benefits such as annual leave and remove provisions which restricts women from working at night.

• Utilize local government mandates via by-laws to enact local legislation to set up standardized and regularized day care centers while encouraging Public-Private partnerships in providing care for children by utilizing existing infrastructure.   

• Introduce more courses and degrees which are required by the private sector. This should be specially done by focusing on arts graduates. 

The effectiveness of the aforementioned policies would be limited if we do not address the need for a shift in people's mindsets. While Sri Lanka has made progress in challenging gender stereotypes there is still much work to be done. Initiating change, particularly within the education system, presents a promising starting point. The prevailing patriarchal system can be challenged and dismantled through education, which has the power to instill in both men and women the belief that predefined gender roles are unnecessary.

The opinions expressed are the author’s own views. They may not necessarily reflect the views of the Advocata Institute or anyone affiliated with the institute.

Why is OT work necessary for women in Sri Lanka?

Originally appeared on the Morning

By Sumhiya Sallay

‘Overtime work for women’ is a topic that is not touched upon much in Sri Lanka, however, it can bring an array of benefits to women and our economy. It can improve financial security by providing an additional source of income and provide the next generation of women and girls with more opportunities to work and increase economic participation and improve productivity. 

Given Sri Lanka’s current economic crisis, there is a dire need for a dual income role in lower-income and lower-middle-income households. As Sri Lanka navigates through this economic crisis, where high levels of inflation have significantly reduced the purchasing power of the public, one earner is no longer sufficient for a household. This is where the need for laws that provide more opportunities for women are needed. 

The freedom to choose a job, a place of work, and how long to work are all decisions that should be given to every employee, whether male or female. However, in certain private sector industries in Sri Lanka, female employees do not have the legal right to choose overtime work, while male employees can [1]. 

Legal safeguards needed for overtime work

It is important for a country to have laws that support women so that women are given the choice and freedom to work in order to support themselves and their families. The World Bank’s ‘Women, Business and the Law 2021’ report states that when economies are more equal, they become more resilient [2].

It also highlighted the need to safeguard women’s economic rights under the law [3]. When laws are discriminatory against women, it makes it much more difficult for them to remain in the workforce. Therefore, it is vital for countries to enable laws that are more supportive towards women. 

The report, which captures the laws and regulations that restrict women’s economic opportunities, indicated that Sri Lanka scored 65.6 out of 100 in the ‘Women, Business and the Law’ 2021 index. Overtime work restrictions are also among one of the various discriminatory laws identified in Advocata’s report on ‘Gender Discriminatory Labour Laws in Sri Lanka and Female Labour Force Participation’. 

In Sri Lanka, women above the age of 18 are not allowed to work for more than nine hours per day (45 hours per week) within a five-day workweek, with an exception provided for female employees employed in residential hotels, clubs, and other places of entertainment or in any shop situated at an airport where they may be employed until 10 p.m. under specific conditions [4][5]. However, male employees are entitled to work for up to 12 hours of overtime per week (on a five-day work week). This discrimination towards female employees prevents them from working overtime. 

Although a practice known as administrative relaxation exists where the law is relaxed to allow women to work overtime, it is not recognised by the law [6]. Due to this, issues arise where employees who have worked overtime are not provided compensation for the hours worked overtime by the employer. Therefore, not having a formal, legally recognised law or regulation for overtime work discourages employees from working overtime. 

Furthermore, having laws that are not supportive towards women, especially discriminatory overtime laws that prohibit women from working overtime prevents them from having an extra source of income. 

Benefits of enabling overtime work

Given the current situation in Sri Lanka, with the high inflation rates, more income generation is needed and increasing female labour force participation by having supportive laws will give women the opportunity to earn more and also be financially independent. In return, women can increase their household spending on items that will enhance a country’s growth prospects by changing spending in ways that benefit children’s nutrition, health, and education [7].

Overtime work can not only benefit female employees but also benefit employers as it increases productivity and contributes towards the overall economic development of a country. The economies of both developed and developing countries would greatly benefit from increasing female labour force participation if women participate in the labour force at the same rate as men, work the same number of hours as men, and are employed at the same levels as men across sectors [8]. 

Overall productivity will increase if employees’ skills and talents are used more fully. There are several studies that have been published on how much more productive an economy could be if it took full advantage of the potential of its women workforce [9].

As more women enter the labour force, economies have the potential to grow faster in response to higher labour inputs. Women’s supply of labour increases household incomes, which helps families escape poverty and increase their consumption of goods and services. 

In Advocata’s report on ‘Gender Discriminatory Labour Laws in Sri Lanka and Female Labour Force Participation,’ key reforms and recommendations that need to take place in order to allow women to work overtime are highlighted. 

These recommendations include removing the restriction on overtime work under the Shop and Office Employees (Regulation of Employment and Remuneration) Act No. 19 of 1954 [10] and introducing a regulation to allow women to work overtime. In order to support this regulation, we also recommended that certain guidelines be included within the law to prevent the exploitation of excessive overtime. 

References

• Shop and Office Employees (Regulation of Employment and Remuneration) (SOE) Act No. 19 of 1954.

• Women, Business and the Law 2021, (Washington: The World Bank, 2021).

• Women, Business and the Law 2022, (Washington: The World Bank, 2022).

• Subject to conditions under the Shop and Office Employees (Regulation of Employment and Remuneration) (Amendment) (No. 32 of 1984), Section 2A.

• Employment In Terms Of The Shop And Offices Employees’ Act Monograph No. 17 (Rajagiriya: The Employers’ Federation of Ceylon, 2016), 13.

• Employment In Terms Of The Shop And Offices Employees’ Act Monograph No. 17 (Rajagiriya: The Employers’ Federation of Ceylon, 2016), 13.

• Ana Revenga and Sudhir Shetty, ‘Empowering Women Is Smart Economics’.

• McKinsey Global Institute (MGI), ‘The Power of Parity: How Advancing Women’s Equality Can Add $12 Trillion to Global Growth,’ (2015).

• McKinsey Global Institute (MGI), ‘The Power of Parity: How Advancing Women’s Equality Can Add $12 Trillion to Global Growth,’ (2015).

• Shop and Office Employees (Regulation of Employment and Remuneration) (SOE) Act No. 19 of 1954, Section 3 (1)(3)(a).

Sumhiya Sallay is a Programmes Executive at the Advocata Institute. She can be contacted at thilini@advocata.org. The Advocata Institute is an Independent Public Policy Think Tank. The opinions expressed are the authors’ own views. They may not necessarily reflect the views of the Advocata Institute.

How can Sri Lanka’s democracy be gender-inclusive?

Covered in the Ceylon Today, Colombo Telegraph, Lanka Business Online and Economy Next

By Sathya Karunarathne

Sri Lanka’s general election dawned at a crucial time of extreme uncertainty and precariousness. The island’s political, social, and economic spheres have been dismantled by an unexpected global pandemic that drove the country into a political limbo with the dissolving of the parliament. The task of untangling the island from its woes has now been handed over to a male-led parliament elected by the general public ostensibly upholding the true values of a  democracy. In contrast, Sri Lanka’s female demographic which constitutes 52% of the population is left underrepresented in parliament, forgotten, and deprived of positions of power and access to the national decision making and policy implementation process, yet again. 

At present, Sri Lanka is ranked 182 out of 193 countries on the inter-parliamentary union of rankings which assesses the percentage share of women in national government. In the previous parliament 13 legislators, or rather a handful of 5.8% of 225 MPs represented the voice and needs of 52% of the population. Moreover, there was only one woman under the age of 40 in parliament that represented the needs of young women.  The newly elected parliament boasts a grand total of one cabinet and two-state female Ministers with five more female members of parliament being elected by popular vote. Moreover, SLPP, SJB, and NPP have collectively appointed four female representatives through their National Lists. 

The World Gender Gap Report published by the World Economic Forum ranked Sri Lanka amongst the top 20 countries in 2006. However, Sri Lanka has drastically slipped in the rankings and has descended to be ranked 102 out of 153 countries in the year 2020 despite performing well on other indicators such as health and education. In 2006 Sri Lanka ranked 84th on the economic participation and opportunity sub-index while in 2020 we ranked 126, slipping 42 places. Moreover, wage equality for similar work has degraded by 27 places since 2006 from being ranked 55 to being ranked 82. Further, Sri Lanka has performed poorly on the political empowerment sub-indicator ranking 7 in 2006 and 73 in the year 2020. Even though Sri Lanka has ranked 9 on “years with a female head of state” indicator it should be noted that the index takes into consideration countries with the most years of a female head of state in the past fifty years. As this is a large time frame it does not necessarily reflect consistency in female political empowerment, especially in the Sri Lankan context. 

Why does female representation matter?

The World Economic Forum states that women are underrepresented in the political sphere globally, with women only making up 23% of national parliamentarians. This severe underrepresentation has an empirical correlation with policy choices and adverse consequences in women’s and children’s welfare. A study by the World Economic Forum addressed this issue by analyzing gender representation in local municipalities and the provision of public childcare in Bavaria. To assess the effect female councillors would have on public childcare a study was carried out to compare the expansion of public childcare across municipalities that have similar characteristics but differ in their share of female councillors. Results emphasized that one additional woman in the local council accelerates the expansion of public childcare by 0.4 spots per 1,000 inhabitants or by 40%. Moreover, a comparison of over 7,700  minutes of council meetings displayed that one additional woman translates to child care being spoken of more frequently and that it creates the ambiance for other female councillors to voice their opinion confidently and to play a more active role in the process of policymaking and implementation.

These findings are relevant to Sri Lanka now more so than ever as Sri Lanka has seen a spike in the number of child abuse and violation of child rights reported in the year, highlighting the lack of female perspective in the policymaking process. 

Furthermore, Sri Lanka is no stranger to policies and laws that are excruciatingly gender discriminatory. Marital rape being legal under the penal code which dehumanizes the “role and duty of a wife”, the Muslim Marriage and Divorce Act (MMDA) of 1951 that has a multitude of discriminatory provisions with regard to marriage, divorce, maintenance, inheritance, property rights and access to justice for Muslim women, discriminatory principles in the Kandyan law on divorce and inheritance, limitations on property rights applicable to women in Jaffna under the Tesawalamai law, mammoth taxes on menstrual hygiene products that are considered a luxury despite 4.2 million menstruating women, 14 year justice struggle for victims of rape, lack of incentive provided for women to enter into the labour force resulting in only 34.3% of females being economically active , failure and delay of the government in midst of the COVID 19 pandemic to repatriate migrant workers that mostly comprise of women who are Sri Lanka’s highest foreign exchange earners, lack of a monitory body/mechanism to assist families and children of migrant workers are just a few amongst a host of gender insensitive and discriminatory laws and policies that haunt the quality of life, day-to-day activities, and even threaten the very lives of women across the island. It takes no expert to identify that much-needed reforms have been conveniently pushed under the rug over the years due to lack of female perspective and representation in positions of power and parliament where laws and policies are debated and solidified. 

Laments of local females aspiring to shatter the glass ceiling 

A glance at the number of female contestants from each major party in the recent general election depicts the difficulty female expectants face in being nominated as a candidate. With the motive of addressing these issues and ensuring women representation in local government, Local Authorities Elections (Amendment) Act, No. 1 of 2016 was introduced which presented a 25% mandatory quota for women. The practicality of abruptly coercing women into positions of power was lost in this attempt. Candidates were provided with zero training and preparation to enter into local government, despite years of convincing them that their expertise lies within the boundaries of a kitchen. Moreover, the lack of preparation in this regard resulted in priority being given to relatives and close associates of politicians overlooking qualified and competent candidates.  

Since Mrs. Bandaraniake’s debut, Sri Lanka’s lineage of female leaders has repeatedly painted a dramatic chronicle of the devoted woman, who steps out of their male counterpart’s shadow in the case of his demise to dutifully carry on the legacy of the deceased. This narrative does not only rob these females of an authentic career and individuality but also leaves a permanent imprint of pedigree that doesn’t necessarily reflect the aspirations of the average woman. Moreover, this phenomenon compromises the quality of leadership as overnight shifts to the political sphere has a certain degree of risk attached to it.

Women continue to be severely underrepresented due to the unequal access to finances and resources needed to successfully seek nominations and to participate in electoral campaigns. According to research conducted by UN Women in 2013, over 80% of respondents identified the lack of access to funding as one of the biggest obstacles for women to participate in a political competition (Ballington and Kahane, 2014). Politics and campaigning is a sphere dominated by big money and more often than not the economically disempowered woman is ruled out from this rich man’s club. According to Lihini Fernando, UNP’s municipal councillor from Moratuwa it costs Rs.25 million roughly to campaign throughout the district. Strong female candidates such as Rosi Senanayake too have stated that financial pressure is a huge burden carried by women that are less likely to have sponsors. Moreover, females employed in the corporate sector, activists, legislature experts, etc are disincentivized to enter into politics due to the high costs involved both financially and otherwise. 

Psychological, sexual, and physical violence against women swamps the arena of politics. Sexually provocative comments publicly directed on new media, abuse from traditional media, the pressure to conform to a subordinate, the stereotypical image of an ideal woman, threats, and physical violence scourges the day to day experiences of a woman contesting to enter into government.

Reform Recommendations

Despite Sri Lanka ratifying the Convention on Elimination of All Forms of Discrimination Against Women (CEDAW) and enshrined its commitment in the Women’s Charter of Sri Lanka (1993) and the National Plan of Action for Women (1996) reflecting constitutional and international commitments to securing the rights of the woman, the country is yet to implement progressive reforms that will increase women’s participation in the democratic process. 

While there are a multitude of reform recommendations that can assist in improving Sri Lanka’s female representation in government, a transparent and fair framework to finance election campaigns through the Election Finance Campaign Act takes precedence and can pave the way to level the playing field in electoral competition between genders. Introducing a cap for spending on election campaigning and amending election laws to include disclosure of information pertaining to the quantum and sources of campaign contributions can combat illicit campaign financing and high costs involved. Moreover, voluntary, non legislated practices such as internal fundraising mechanisms in-kind contributions can help address the gender funding gap within parties. Moreover, countries like Brazil have put in place provisions to ensure a certain airtime for female contestants from each political party.

Initiating training programmes and capacity building for women aspiring to run for office is crucial in increasing and solidifying effective female representation. These programmes can be targeted at grassroot level activists and even extend to local school levels to encourage and motivate young women to pursue a career in politics. Moreover, special attention should be given to proper selection criteria and conducting the said programmes trilingually. Within parties, training programmes and capacity building should be provided to women along with due recognition and equal opportunity. 

Moreover, introducing a mandatory quota for women in the national list for major parties is yet another step that can be taken in addressing gender underrepresentation. This can facilitate female expectants to avoid financial burdens and gender-based violence and aggression associated with campaigning.

Sathya Karunarathne is a Research Executive at the Advocata Institute and can be contacted at sathya@advocata.org or @SathyaKarunara1 on twitter. Learn more about Advocata’s work at www.advocata.org. The opinions expressed are the author’s own views. They may not necessarily reflect the views of the Advocata Institute or anyone affiliated with the institute

The opinions expressed are the author’s own views. They may not necessarily reflect the views of the Advocata Institute or anyone affiliated with the institute.