DETERMINING EXTENT OF UNDEREMPLOYMENT IN AGRICULTURAL SECTOR-AN EVIDENCE FROM DISTRICT MARDAN

This study was conducted to determine the extent of underemployment in agricultural sector of district Mardan during 2007. Underemployment is a situation wherein the number of hours worked of an employed person is not enough compared to what he is willing and able to engage in. It is an intriguing and complex issue. Due to subdivision of land holdings and mechanization of agriculture, the problem of underemployment in the agricultural sector is worsening over time. In the rural areas, the pace of industrialization is very slow and creation of off-farm employment opportunities is minimal. Hence, underemployment is a source of unrest and threat to sustainable livelihood. The study is based on data collected through structured questionnaire from one hundred sampled farmers. Respondents were categorized into six groups on the basis of size of land holdings. In the study area, agriculture is the major source of employment. The average size of land holdings was 2.73 hectares ranging from 0.20 to 11.94. About 49% of farmers had their land holdings below 2 hectares. On an average, 2.40 adult units of family labour were engaged in agricultural activities ranging from 1.47 to 3.50. The study revealed that average level of underemployment was 23.95%. The major determinants of underemployment were farm size, size of family labour, size of livestock herd, level of offfarm employment, level of education and distance of the village from the main road. Econometric analysis revealed that coefficients of the farm size, size of livestock herd, level of off-farm employment and level of education were negatively correlated and significant while coefficients of size of family labour and distance of the village from main road were positively correlated. There was significant difference in the level of underemployment among various size of farms. Small farmers find it difficult to eke out their livelihood solely from agriculture. They are switching to other sources of income. About 27% of sampled farmers were engaged in off-farm employments. The analysis shows that coefficients of farm size, size of livestock herd and village distance from main road were negatively correlated while coefficients of household size, level of education and age of sampled respondents were positively correlated with the level of off-farm employment. Size of land holdings decreases as a result of subdivision due to law of inheritance. In addition to this, technological change continues to exert a significant long run influence on farm sector employment and it is likely that, this long-term trend will continue. As a result, underemployment in the agricultural sector is likely to increase in future. Off-farm employment has the potential to absorb excess labour from agricultural sector. In rural areas, livestock provides a secondary income for households. There is need to develop livestock sector through various measures. It is recommended to look towards processing activities and value added products in the field of agriculture. It is also recommended to open skill development centers in rural areas to impart training and skills in various needed profession