Lakshadweep is a place where women have a lot of space in their family system and society. The crime rate against women and the other gender line segregation are much low in island. This paper examined, whether this social potential is reflected in the employment of women. Author calculated all the statistical indicators of employment from unit level data provided by National Sample Survey Organisation and Periodic Labour Force Survey. This study finds, there is huge gender gap in the Lakshadweep labour market. From the time to time, demand for women employment comes from social infrastructure and public administration run by government. Lack of diversification in the employment sectors is mainly works in demand side of the labour market, whereas in supply side lack of technically skilled, vocationally trained youth failed to explore the employment opportunities from both inside and outside of the island. The large proportion of unemployed and discouraged job seekers turned unproductive and engaging in unpaid domestic duties creates a large proportion of economically dependent group in the midst of all positive social possibilities.