nonagriculture

Nonagriculture refers to all economic activities outside farming and related primary production. It encompasses industry, construction, mining, utilities, services such as trade, transport, finance, education, health, public administration, and other nonfarm activities.

It is commonly used in statistics to describe the structure of an economy, often measured as the nonagricultural share of GDP or employment. The term can also describe rural and urban labor markets, with nonagriculture typically concentrated in urban localities.

As economies develop, the share of nonagriculture tends to rise, reflecting industrialization and service-sector growth. In many low-income countries, agriculture still employs a large portion of the workforce, while gains in efficiency and urbanization gradually shift employment toward nonfarm sectors.

The composition of nonagriculture is diverse by country. High-income nations have large services and knowledge-based sectors; middle- and low-income countries may have significant manufacturing or construction alongside services. Rural areas may experience nonagriculture through rural nonfarm employment, agro-processing, and tourism.

Shifts to nonagriculture can improve productivity and livelihoods but may require investments in education, infrastructure, and rural development. Critics note that focusing on nonagriculture risks neglecting sustainable agriculture and can create transitional unemployment.

See also: agriculture, economic development, structural change, rural-urban migration.