Why Are Women Employed in Low-Paid Work? Understanding the Systemic Barriers Holding Them Back
The Global Story of Women’s Low-Paid Work.
Over countries, sectors and different income levels, one trend holds true: Women account for most of the low-paid workforce.
From domestic workers in India to retail associates in the United States, from caregivers in Europe to migrant workers in the Middle East, women are much more likely than men to be paid less for work that is just as vital to the economy. This is no coincidence, nor is it the work of personal choice alone. It is the effect of complex, long-standing systems that inform education, job opportunities, pay scales and social norms.
This is particularly problematic in India. While educational levels of women and professional classes are on the rise, a high proportion of working women are still in informal, insecure, low-paid work. This disparity matters not only for gender equality but also for economic growth, household stability, and national productivity.
This is the reality at SheWork that we wish to change. SheWork focuses on ensuring more women have access to high-value roles in technology, engineering and non-tech fields as a diversity-first, AI-enabled hiring platform to help organisations to break out of old-school, inflexible hiring structures. Understanding why women are overrepresented in low-paid work is a first step toward forging an equitable, future-ready, and financially viable workforce.
Knowing the term: What is “low paid work” for women?
By term, low-paid jobs are jobs that pay significantly below the national median, with little in the way of long-term security, benefits or advancement. Although income brackets differ by country, these jobs have similar features.
Wages associated with low-paid work usually consist of:
- No formal contracts, or very limited.
- Very few social security or health benefits.
- Low bargaining power for workers.
- Responsible for high vulnerability to economic shocks.
For women, low-wage work often shows up in industries including:
- Domestic and care work.
- Retail and hospitality.
- Gig and platform-based services.
- Back-office and administrative support.
- Informal manufacturing and assembly.
In a lot of cases, these roles are undervalued- not because they don’t require as much effort or skill, but mainly because they historically represent women’s labour and caregiving.
The Hard Numbers: Global & Geographical Breakdown of Low-Paid Women’s Employment.
India
India has one of the lowest female labor force participation rates in all major economies. Among working-age women, a substantial percentage of them belong to the informal sector such as agriculture, domestic labour, home-based businesses and care work.
A few things have prevented many from moving into other, better-paying formal jobs:
- Skill gaps in access to skills-based education.
- Access constraints due to safety and mobility.
- Breaks on the job associated with caregiving.
- Poor or no employer encouragement of flexible work.
Even qualified women who are educated might find themselves taking lower paying jobs because of location constraints, a lack of industry exposure or hiring bias.
United States
Women are overrepresented in hospitality, retail, administrative services and caregiving roles in the US. Though the gender pay gap in some professions has narrowed, the gap is still high in the service segment.
Disparity is compounded by race and socio-economic background. Women from minority communities tend to work more in low-wage, less developed jobs that have limited opportunities for career advancement, a sign of layered inequality.
Middle East.
Cultural norms and legal restrictions restrict women’s access to a diverse range of jobs in many Middle Eastern countries.
Migrant women constitute a substantial proportion of domestic and care workers, and many work long hours for little pay with little or no legal protection. These jobs, though critical, are less valued and hidden within the formal economy.
Europe & the UK
Occupational clustering remains higher for women in most European countries, despite higher educational levels. Women hold nearly 90% of lower-paid service jobs, most often in health care, education assistance, and retail, while men remain in higher-paid technical and leadership roles.
They illustrate that education alone will not wipe out structural wage gaps.
APAC (Singapore, Japan, Southeast Asia)
Strong social norms about caregiving and part-time work across APAC affect women’s jobs. Women are more likely to quit full-time or take lower-paid, flexible jobs, which diminishes long-term earning power and leadership representation.
Root Causes: Why Are Women More Likely to Work in Low-Paid Jobs?
Gender bias and social norms
From a young age, women are pushed into roles often seen as nurturing, supportive, or secondary. These perceptions influence:
- Career guidance.
- Hiring decisions.
- Promotion opportunities.
- Caregiving burdens disproportionately burden women, decreasing their time, mobility and availability for higher-tier roles.
Restricted Access to Education, Skills & Training
In many places, girls drop out of school earlier because of financial or other reasons, or safety, cultural or economic pressures. Even where women have been educated, it is common they do not access training that matches their skillset, especially in high-growth sectors such as technology and engineering. This results in a mismatch of skills that hampers one’s chances of entry to the upper-paying side of things.
Occupational Segregation
Women are grouped into the sectors typically associated with lower pay. This phenomenon includes: The “sticky floor,” where women can’t quite escape entry-level positions. The “glass ceiling” prevents some from entering senior leadership. This behaviour continues throughout industries and geographies.
Safety, Mobility & Infrastructure Barriers
Unsafe commuting, long travel hours and insufficient nearby work drive women toward low-paid local work. This is especially evident in Indian cities and semi-urban areas.
Pay Discrimination & Bias
Women frequently earn less than men even at the same position in the same role. Biases in appointing, bargaining on employment selection, wage, salary discussions and role assignment bias still weigh on salary and salary sharing persists and still is prevalent in the working environment in work areas that lack clear structure.
Part-Time, Temporary and Informal Work
Many women choose flexible roles to fulfil home duties. However, they are often job-oriented, not secure or well paid, which in turn leads to long-term income inequities.
Technology Barriers
But as the technology economy expands, many women lack access to the tools, networks, and exposure that make better tech-enabled jobs more desirable, despite increasing demand.
Sectoral Breakdown: Industries Where Women Are Most Underpaid
Women are overrepresented in:
- Domestic and care services.
- Retail and hospitality
- Primary education and nursing.
- Assembly-line manufacturing.
- Gig and platform work.
- Back-office support functions.
These sectors are critical to the economy but remain underpaid and undervalued.
Economic Consequences of Low-Paid Women’s Work
Individual incomes don’t matter just for low wages. They affect:
- Household financial stability.
- Effects on children’s education and health.
- Long-term savings and retirement security.
At a macro level, economies sacrifice productivity, innovation, and skilled manpower as they fail to integrate women into high-value jobs fully.
The Future of Work: Will AI Increase or Reduce the Gender Pay Gap?
Automation puts many roles, especially in administrative and service industries, at risk for women. But AI opens up new frontiers in:
- Remote work.
- Digital services.
- Tech-enabled freelancing.
The outcome will depend on whether women gain access to relevant skills and platforms.
How SheWork Is Solving This Challenge for Women
SheWork’s Vision
Accessibility, visibility, and fair hiring practices are SheWork’s focus on economic participation.
Breaking Occupational Segregation
Through matching women with high-value tech and non-tech roles, with SheWork, we open doors for opportunities beyond gendered roles.
Skill Development & Upskilling
The SheWork services enable training in:
Digital skills. Cloud, testing, and UI/UX. Interview planning and career preparedness.
Flexible & Remote Job Opportunities
Remote / hybrid roles lower mobility and safety barriers and facilitate access and salary scales across the world.
Support for Women Returning to Work
Returnships, mentorship, and structured, orientation-based onboarding methods offer women ways to return to the workforce fully equipped with self-efficacy.
Opportunities for Women Freelancers
With project-based work across verified global clients, you will earn more from them and have multiple lines of business because you can develop a broader range of skills.
AI-Powered Talent Matching
AI reduces bias by focusing on skill sets and experience, not backgrounds and career gaps.
Enabling Companies to Build Inclusive Teams
SheWork works with groups to adopt diversity-led hiring and compliance-first models, as well as inclusive workforce strategies.
Policy Recommendations: What Governments & Companies Must Do
Invest in skill-based education programs for women. Create stronger childcare and support systems for families. Facilitate pay transparency and equal pay laws. Improve workplace safety and transport. Expand flexible and remote work models.
Actionable Steps for Women to Transition From Low-Paid to Skilled Work
Cultivate fundamental digital skills. Take short-term, industry-specific classes. Create a portfolio with work that you worked on firsthand. Use it to apply for remote, hybrid and project-based roles. Join platforms like SheWork for access and community support.
A woman’s concentration on low-paid work is not commensurate with her ability, ambition, or effort. It is the manifestation of institutional blocks that restrict access, visibility, and fair pay. Addressing this need will require a joint effort among individuals, employers, platforms, and policymakers. We could move women into jobs that reflect their real economic worth by rebuilding employment systems, investing in skills, and expanding flexible work arrangements. There is one goal at SheWork: to cultivate future-ready teams in which women are no longer relegated to low-paid work but are central to the development, innovation, and leadership of the next generation of workers in today’s workplaces.