Nonfarming

Nonfarming is a broad term used to describe activities, employment, or households not engaged in agricultural production. In economics and statistics, it distinguishes the portion of the economy and the population that operates outside farming from agricultural activity. The concept is applied at both individual and aggregate levels to analyze income, employment, and growth.

In labor statistics, nonfarming is often encountered in the phrase nonfarm payrolls. Nonfarm payrolls refer to employment in all sectors except agriculture and are widely used as a key indicator of the labor market’s health. In the United States, the Bureau of Labor Statistics reports nonfarm payroll data monthly as part of the employment situation summary. The measure helps observers assess job growth, unemployment trends, and the momentum of economic activity.

The nonfarming sector typically includes manufacturing, construction, retail and services, finance, government, and other nonagricultural activities. In most developed economies, nonfarming jobs form the majority of employment, though the exact composition varies by country and level of development. In rural areas, diversification into nonfarming work is an important aspect of economic resilience and often accompanies urbanization and structural change.

Limitations and variations exist in the use of the term. Definitions and data collection methods differ across countries, and informal or self-employed work may be treated differently or omitted in some statistics. As a result, the scope of what is considered nonfarming can vary between datasets and contexts.

Related concepts include nonfarm payrolls, agriculture, and the rural economy.