However, the attrition rate drops sharply to 3% among those who stay in their jobs for more than two years, from 52% among those who have been employed for less than a year, it said, highlighting a critical feature of the segment.
The report, titled ‘State of Women in the Blue-Grey Collar Workforce 2025’, is based on a survey of about 10,000 current and 1,500 former women workers across sectors such as retail, manufacturing, banking, financial services and insurance (BFSI) and services. The survey uncovered stark structural challenges – ranging from poor pay and mobility issues to safety concerns and limited growth paths – that push women out of the workforce prematurely.
“This report reveals a tremendous opportunity for India to unlock its full economic potential,” said Pooja Goyal, founding chief executive, Udaiti Foundation. “Women aren’t leaving because they lack capability; they’re leaving because we haven’t yet built the infrastructure and designed workplaces for their success.”
Even as the share of women in blue-grey collar jobs increased to 19% in 2023-24 from 16% in 2020-21, according to the Periodic Labour Force Survey, nearly 67% of the women who quit in the past six months remain out of work due to multiple systemic deterrents.
Pay dissatisfaction is widespread, with 54% of working women saying they were unhappy with their income, and 80% managing to save less than Rs 2,000 a month. Better pay is a proven retention lever, as per the survey. Women earning more than Rs 20,000 are 21% less likely to drop out, and 42% of those out of work said they would return for better wages.The report said 57% of current workers struggle with transport, whereas 11% feel unsafe while commuting, especially during night shifts. For single migrant women in manufacturing, the situation is worse, with many relying on hostels but lacking safe travel options. One in five women who exited said they would return if jobs were located closer to home.Workplace safety also remains a concern – 22% of women feel unsafe at work, a figure that jumps to 33% in locations lacking basic infrastructure like CCTV and lighting. Sectors such as fast-moving consumer goods, manufacturing and education—especially in field roles—are most affected.
Lack of clear career advancement was cited by 21% respondents as a reason for leaving. Postgraduates with more than a year’s tenure are three times more likely to quit if growth paths are unclear, particularly in BFSI and telecom. Yet only 11% of women said they were pursuing skill-based training, suggesting a mismatch between aspirations and opportunity.
Meanwhile, 28% reported long hours and inflexible work conditions, with one-third of them attributing their stress to a lack of flexibility. Among those who quit, 24% cited poor manager behaviour and lack of respect. Those in field roles, in particular, often lack grievance redressal systems, leaving women without channels to voice concerns.
“We need to now develop robust, gender-intentional retention strategies that enable women in grey and blue-collared roles to grow,” said Guruprasad Srinivasan, chief executive at Quess Corp. “It’s not just a social imperative, but essential for building a productive, competitive economy.”
The report identified five key levers for improving retention: better pay, safer mobility, upgraded workplace infrastructure, clearer growth paths and inclusive workplace culture.