Investment in Rural Skills Development: Enhancing Opportunities in Non-urban Areas


Published on: May 28, 2024.

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Pakistan’s Rural Labour Market Undergoing Changes: Challenges and Solutions

Pakistan’s rural labour market is going through significant changes as a result of various factors including population growth, farm mechanisation, an increasing labour force participation rate, and reverse rural-to-urban migration trends caused by the country’s industrial slowdown. These transformations are reshaping the agricultural sector and posing challenges for the workforce.

Typically, as a country’s economy grows and industrialises, the share of agricultural employment decreases in favor of manufacturing and service sectors. Pakistan has also witnessed such a shift in the past few decades. In 2001-2002, the agriculture sector accounted for 42% of total employment, but by 2020-2021, it dropped to 37%. However, unlike in developed countries, Pakistan has experienced an increase in the absolute number of agricultural workers despite the decline in the sector’s share of employment.

From 2001-2002 to 2020-2021, Pakistan’s total labour force grew from 41.5 million to 71.8 million, resulting in a significant rise in the agricultural labour force from 17.4 million to 26.6 million, indicating a growth of 52.3%. This surge in the number of workers can be attributed to various factors, but one key factor is the ongoing industrial slowdown leading to an influx of reverse migration from urban to rural areas.

Challenges Faced by the Rural Labour Market

However, the increase in the agricultural labour force presents several challenges. Firstly, Pakistan’s cropped area has remained relatively stable at around 23.5 million hectares over the last two decades, providing limited scope for accommodating additional labour. Secondly, farm mechanisation is on the rise, resulting in the displacement of manpower. The sowing and harvesting of major crops like wheat, rice, and maize have been mechanised to a great extent, varying across regions and farmers. Moreover, other agricultural operations are also becoming increasingly mechanised, including the use of drones for pesticide spraying.

Furthermore, Pakistan is expecting a massive influx of new entrants into the labour market in the coming years, given that 45% of the population is under the age of 18. While Pakistan’s current labour force participation rate is the lowest in the region, it is gradually rising due to high inflation eroding real wages, pushing individuals to seek self-employment and wage employment opportunities.

Addressing the Challenges: Policy and Implementation Framework

Given the changing dynamics of the rural labour market, Pakistan needs a comprehensive policy and implementation framework to divert surplus labour from the agricultural sector to the non-farm sector. This can be achieved by offering vocational training programs, entrepreneurial education, and financial grants or loans. By upskilling rural youth and equipping them with relevant skills, they can transition into non-farm sectors and overcome the challenges of dwindling agricultural employment opportunities. It is crucial to revamp the existing skills development system to effectively train rural youth for the evolving agricultural landscape, non-farm sectors, and potential overseas job opportunities.

Empowering Rural Youth: Training Programs and Opportunities

One of the key steps is to offer training programs directly at the trainees’ doorsteps using semi-mobile training units. These units can move from one village to another, conducting training events lasting three to six months in each location. This approach addresses the convenience concerns of potential trainees, especially women, who may face transportation challenges. Additionally, partnering with manufacturers and service providers of machinery and equipment can ensure access to the latest technology, avoiding heavy investments in capital items.

Enhancing Employability through Skills Development

Pakistan’s technical and vocational education and training sector must address the inadequacies in its concept, design, and training delivery mechanism. Skills development should focus on meeting the evolving needs of rural youth and aligning with the changing agricultural landscape, non-farm sectors, and overseas job opportunities. Temporary instructors with extensive industry experience can play a crucial role in leading these training programs and imparting practical knowledge.

Prospects for the Future

Without prompt and effective policy interventions, Pakistan faces the prospect of increasing unemployment, particularly in rural areas. This could give rise to higher crime rates, threatening social stability and public safety. However, with comprehensive policies, targeted training programs, and an emphasis on skills development, Pakistan can effectively navigate the challenges of the changing rural labour market, ensuring a brighter future for its workforce.

Source: Dawn