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.

Sexual harassment in the workplace: High time to address labour laws

Originally appeared on the Morning

By Akhila Randeniya and Chantal Dassanayake

In light of the economic crisis, increasing the female labour force participation is one way to unlock growth potential. We witnessed during the pandemic how economic conditions necessitated women to pursue additional means of income, from engaging in sex work to migrating in droves to engage in low-skilled labor.

There exist a multitude of reasons that prevent women from entering the workforce; the dual burden of care work and employment, harassment while travelling, and labour laws that discriminate based on gender are a few. Yet sexual harassment is something that is rarely discussed – let’s have the uncomfortable conversation that is usually brushed under the rug.

Multiple surveys highlight that a majority of women face sexual harassment in their workplaces, which could lead to a loss of working days, resulting in companies making massive losses. A survey conducted by International Finance Corporation (IFC) on nine Sri Lankan businesses show that almost 68% of the women who participated in the survey have experienced some form of workplace violence or harassment.

In addition, a survey conducted among garment factory workers highlights that almost 80% of women faced workplace harassment. A questionnaire administered by the International Labour Organization (ILO) in 2016 among 500 women, the majority of whom were unemployed, discovered that three-fifths of women would be willing to work if they were assured that they would not be vulnerable to sexual harassment in the workplace.

The survey conducted by the IFC on nine Sri Lankan companies stated that workplace violence and harassment towards men and women led to a loss of six working days each, resulting in a loss of $ 1.7 million in work hours. Given the present status of the economy, Sri Lankan businesses can no longer ignore this issue that disproportionately affects women.

Protections currently available to women

Unfortunately, sexual harassment in the workplace is not addressed under the existing labour laws in Sri Lanka. Several statutes do cover the offence indirectly, yet it seems to be insufficient as the cases only increase. The matter can be addressed either through criminal law or civil law proceedings in Sri Lanka.

Sexual harassment is criminalised under Section 345 of the Penal Code (Amendment) Act No.22 1995. It explains sexual harassment in the workplace to be words or actions used by a person in authority. The Penal Code requires victims to report cases of sexual harassment to the Police by way of a complaint. Such complaints are potentially followed by lengthy court proceedings, which require a high burden of proof.

It is estimated that the average time taken to conclude a High Court proceeding to be 10.2 years from the date of the crime. Untimely and lengthy procedures have been said to cause under-reporting of crimes, which suggests that realistically, the number of incidents could be worse than imagined. Hence why this is something that needs to be changed.

Addressing sexual harassment via criminal law alone is ineffective as the burden of proof is largely on the complainant. This is where civil law comes into play.

The Industrial Disputes Act No.43 of 1950 (IDA) allows for the private sector to take up cases of sexual harassment through civil law. The act provides swifter mechanisms to resolve work-related disputes which do not involve the Police and court proceedings. Under this act, work-related disputes can be expansively interpreted to include sexual harassment in the workplace, thereby allowing victims to seek justice.

Workers in the public sector have several avenues of redress when experiencing sexual harassment in the workplace. The courts have attempted to combat sexual harassment in the public sector in limited circumstances.

Pelaketiya v. Gunasekera ruled that sexual harassment within the public sector was a violation of the fundamental right to equality. Republic of Sri Lanka v. Abdul Rashak Kuthubdeen criminalised the demand of sexual activity as a bribe in exchange for public service.

Policy recommendations

The move to introduce a new bill criminalising sexual assault and all other forms of harassment by the Minister of Justice late last year was a commendable step, but the existence of laws was never the issue. It is the incredibly complicated and gendered mechanisms for reporting and redressing any sort of complaint that need to be changed.

On the other hand, slapping on a criminal offence rarely seems to prevent a social wrong. Perhaps rehabilitation and educating perpetrators and society to shift the narrative from blaming women should be considered.

While legal barriers do exist, the root of all this evil can be boiled down to power structures that allow perpetrators to continue their behaviour in the workplace. Clear and coherent communication channels need to be established for victims to voice out their truth.

Limiting this to the workplace however is not enough. Conversations on harassment cannot exist in the vacuum of the workplace. Women face it in all avenues of life, from walking home at night to worrying about taking public transport.

If we want the women of our country to take part in the workforce, the least we can do is ensure that they are protected while working. The current legislation is clearly insufficient to provide any form of protection that is meaningful.

It is imperative that the existing labour law regimes are improved upon to include avenues of complaint and timely resolution of such complaints. A unified system needs to be implemented so that victims from both private and public sectors can enjoy equal protection.

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.