Industry
Mint Primer Workers flocking to farms: what’s behind the data?
Summary
- As per a PLFS report released in September, 46.1% of workers were engaged in agriculture in 2023-24 (July to June), up from 42.5% in 2018-19, before the pandemic.
More workers now depend on agriculture as a source of employment compared with the pre-pandemic years, shows the latest Periodic Labour Force Survey (PLFS). What is driving workers back to the farm and what does it mean for the economy? Mint explores.
What does the labour data show?
As per a PLFS report released in September, 46.1% of workers were engaged in agriculture in 2023-24 (July to June), up from 42.5% in 2018-19, before the pandemic. By comparison, manufacturing and construction employed 11-12% of workers each in 2023-24. So, not only does agriculture account for the highest share of employment, but more workers are moving to this primary sector. Estimates suggest that between 2018-19 and 2023-24, about 68 million workers joined the farm sector. By contrast, between 2004-05 and 2017-18, nearly the same number—about 66 million—moved away from agriculture to other sectors.
Read more: Pour resources into rural India for a manufacturing boom
What’s the reason behind the migration?
One could be the lack of well-paying jobs. A casual worker earned ₹417 per day in rural and ₹516 per day in urban areas (April- June 2024). For a person working 25 days a month, this is ₹2,500 more—not enough to cover rent, and higher expenses on food and commute. Another possible reason is more women joining the farm sector (some as unpaid labour on family farms). Data shows that the share of rural women working in agriculture rose from 71% of all rural female workers in 2018-19 to 77% in 2023-24. A third reason could be the harrowing experience of the pandemic for migrants without adequate health cover.
What does rising farm work spell for the economy?
More hands joining agriculture lowers per capita productivity and earning. It’s also a sign of ‘disguised unemployment’ because a chunk of the labour force can be removed from agriculture without any hit to production. The share of workforce in agriculture usually falls with economic development, but that hasn’t been the case with India so far.
Are there any political implications?
Agriculture incomes are uncertain due to climate and price risks. So, families dependent on farming tend to need more state support as input subsidies, free electricity and guaranteed minimum support prices. Farm households often complain that they are unable to afford decent education and healthcare—as tiny-sized farms cannot support rising expenses. As a result, political parties are promising health insurance and income support schemes, in addition to filling up vacancies in government jobs.
Read more: Generating jobs in India’s highly segmented labour market will be a long haul
What is the solution to this crisis?
Creating well-paying, non-farm jobs and skilling rural youth can reverse the trend. PLFS data shows the jobless rate (15 years and above) fell to 3.2% in 2023-24, but the better educated are finding it difficult to get jobs. Joblessness among graduates is 13%. Further, close to 80% of workers are either self-employed (including in agriculture) or are casual workers without a regular pay or social security benefits. The challenge, therefore, is not just to create jobs but good jobs—not easy when the workforce is largely unskilled.
