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Changing Structure of Rural Employment in Bihar: Issues and Challenges

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  • Maryam Sabreen

    (National Institute of Technology (NIT) Patna)

  • Deepak Kumar Behera

    (National Institute of Technology (NIT) Patna)

Abstract

In India, Bihar has been among the less developed states, but has been showing an impressive growth pattern in recent years. While Bihar's economic structure is changing, the pattern of labour employment is also presenting a shift from farm to non-farm sector. The share of the workforce employed in agriculture has declined from over 70% to around 40% between 2004 and 2017–2018, while the share of employment in industries and services has increased substantially. The growth of non-farm employment provides opportunities to contain the pressing unemployment problem which according to the current Periodic Labour Force Survey (PLFS) 2017–2018 report has recorded more than 7% of the unemployment rate (UR). The rural sector that constitutes a major portion of farm employment has also seen a growth of employment in the non-farm sector, though the rate of unemployment here has increased at a faster rate. While migration has been an important aspect of Bihar’s economy, there is a need to provide employment in rural areas, particularly the rural non-farm sector that would directly affect the unemployment problem in urban centres. Thus, using the latest PLFS (2017–2018) data set, this paper provides a comprehensive analysis of the structural transformation in Bihar since bifurcation and more importantly the changing employment structure focus on rural areas.

Suggested Citation

  • Maryam Sabreen & Deepak Kumar Behera, 2020. "Changing Structure of Rural Employment in Bihar: Issues and Challenges," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 63(3), pages 833-845, September.
    • Handle: RePEc:spr:ijlaec:v:63:y:2020:i:3:d:10.1007_s41027-020-00279-6
    DOI: 10.1007/s41027-020-00279-6
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    References listed on IDEAS

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    1. Vinoj Abraham, 2008. "Employment growth in rural India: Distress driven?," Centre for Development Studies, Trivendrum Working Papers 404, Centre for Development Studies, Trivendrum, India.
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    3. Kapsos, Steven. & Bourmpoula, Evangelia. & Silberman, Andrea., 2014. "Why is female labour force participation declining so sharply in India?," ILO Working Papers 994949190702676, International Labour Organization.
    4. Allan G. B. Fisher, 1939. "Production, Primary, Secondary And Tertiary," The Economic Record, The Economic Society of Australia, vol. 15(1), pages 24-38, June.
    5. Mukherji, Arnab & Mukherji, Anjan, 2012. "Bihar: What Went Wrong? And What Changed?," Working Papers 12/107, National Institute of Public Finance and Policy.
    6. Santra, Swarup & Kumar, Rajesh & Bagaria, Nidhi, 2014. "Structural change of Bihar economy during 1999 to 2010: a district level analysis," MPRA Paper 53285, University Library of Munich, Germany.
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    Cited by:

    1. Ramun PRASAD & Deepak Kumar BEHERA, 2024. "Challenges For Employment From Covid Imported Reversed Migration: An Empirical Study Of The Indian State Of Bihar," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 24(1), pages 41-56.

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    More about this item

    Keywords

    Employment; Unemployment; Structural transformation; Rural;
    All these keywords.

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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