Disguised unemployment in agriculture

Published on 07 Mar 2025

Disguised unemployment in agriculture occurs when more people are involved in a production activity than are actually required. In simpler terms, it's a situation where people appear to be employed but their contribution to the output is negligible or zero

Trends in share of workforce in agriculture

• Historical Dependence: In the early 1990s, agriculture was the backbone of India's economy, employing nearly 62% of the workforce.

• Labor Force Transition: Between 1993-94 and 2004-05, a significant shift occurred with a 6% decline in agriculture's share of employment.

• Accelerated Decline: The pace of decline intensified between 2004-05 and 2011-12, with a 9% reduction in agricultural labour.

• Gradual Reduction: The decreasing trend persisted post 2011-12, though at a slower pace.

• 2018-19 Scenario: By 2018-19, only 41.4% of India's workforce was engaged in agriculture.

• Estimated Optimal Level: Considering India's per capita GDP in 2018, the ideal agricultural workforce is estimated at 33-34%.

• Surplus Labor: The actual figure of 41.4% indicates a surplus labour force in the agricultural sector.

Reasons for Disguised Unemployment in Indian Agriculture

• Small and Fragmented Landholdings: The average land holding in India is small, often leading to family members working on a piece of land that is too small to provide full-time employment.

• Example: The average land holding size in Punjab has decreased from 6.8 hectares in 1970-71 to 4.03 hectares in 2015-16, leading to increased fragmentation and underemployment.

• Low Productivity: Traditional farming methods, lack of irrigation, and poor quality of seeds contribute to low agricultural productivity, requiring more labour than necessary.

• Seasonal Nature of Agriculture: Agricultural activities are largely seasonal, leading to underemployment during off-peak periods.

• Example: The paddy cultivation cycle in Kerala typically lasts for about 120 days, leaving farmers idle for the remaining part of the year.

• Lack of Alternative Employment: Limited industrialization and service sector jobs in rural areas force people to stay in agriculture, even with low returns.

• Population Pressure: The high population growth rate in rural areas has led to increased pressure on land, resulting in disguised unemployment.

• Example: The population growth rate in Uttar Pradesh has been consistently higher than the national average, leading to increased pressure on land and agricultural employment.

• Social Customs and Joint Family System: The joint family system often leads to a larger workforce on farms than required, as family members are reluctant to leave the agricultural occupation.

• Lack of Mechanization: The low adoption of modern agricultural techniques and machinery leads to labour-intensive methods, contributing to disguised unemployment.

• Example: A low tractor density relative to cultivated land can be an indicator of labour-intensive agriculture and potential disguised unemployment.

Measures to tackle disguised unemployment in agriculture

• Increasing Agricultural Productivity

• Technology Adoption: Promoting the use of modern agricultural equipment and techniques to increase output per worker.

• Example: The use of drones for real-time crop monitoring and analysis has enabled farmers to make data-driven decisions, enhancing productivity and reducing labour requirements.

• Irrigation Facilities: Expanding irrigation infrastructure to ensure year-round cultivation and reduce seasonal unemployment.

• High-Yielding Varieties: Encouraging the cultivation of high-yielding crop varieties to improve output per unit area.

• Diversification of Income Sources

• Agro-based Industries: Promoting the establishment of agro-based industries to create non-farm employment opportunities.

• Example: Agro processing clusters as the Mango processing cluster for Alphonso mangoes in Maharashtra 

• Livestock Farming: Encouraging dairy, poultry, and other livestock-based activities to diversify income sources.

• Example: The National Livestock Mission has promoted dairy, poultry, and other livestock-based activities, providing alternative income sources for farmers.

• Off-farm Employment: Promoting skill development and entrepreneurship to encourage self-employment and other non-farm activities.

• Example: The Deendayal Antyodaya Yojana-National Rural Livelihoods Mission has focused on skill development and entrepreneurship among rural women, leading to increased non-farm income.

• Education and Skill Development

• Vocational Training: Providing vocational training to rural youth to equip them with skills for non-farm jobs.

• Literacy Programs: Improving literacy rates to enhance employability and entrepreneurial skills.

• Example: The Saakshar Bharat Mission has aimed at improving literacy rates in rural areas, enhancing employability and entrepreneurial skills.

• Social Safety Nets

• Employment Guarantee Schemes: Implementing effective employment guarantee schemes to provide alternative livelihood options.

• Social Security Programs: Providing social security benefits to vulnerable sections of the rural population.

• Example: Pradhan Mantri Jan Arogya Yojana and Pradhan Mantri Awas Yojana have provided social security and housing benefits to rural households, reducing vulnerability.

Tags:
Economy

Keywords:
Agriculture Unemployment Disguised unemployment Workforce in agriculture Labour force

Syllabus:
General Studies Paper 3

Topics:
Agriculture and Food Security