FACTORS DETERMINING OFF-FARM EMPLOYMENT ON SMALL FARMS IN DISTRICT NOWSHEHRA OF NORTH WEST PAKISTAN

There exists high level of under employment in agriculture sector in agrarian and transitory economies. Industrial growth and capacity is not enough to accommodate surplus labour existing in the agricultural sector which give way to unemployment and the expansion of non-farm sector (unorganized service sector). This shift of livelihood has socio-economic implications for a transitory economy like Pakistan. Aim of the present research is to investigate and assess the factors contributing to off-farm employment in North West Pakistan. For this purpose data were collected from purposively selected villages in district Nowshera, Pakistan in 2008. OLS technique was used for data analysis. Findings of the study show that farm-size, family-size, farm-underemployment, education, and income-from-other-sources were the main factors determining off-farm employment in the study area. It was also observed that farmers of the comparatively developed areas devote more time to off-farm employment. This could be associated to the developed means of transport and communications, better education facilities as well as availability of off-farm jobs locally. The study revealed that most of the farmers were engaged in daily paid labour. However, a considerable number of farmers were also engaged in trade and commerce jobs and part time employment with the private firms. Overall there is a gradual shift from farm to off-farm employment which is resisted by the underdeveloped means of transport and communication, education and lack of basic infrastructure.