Employment in agriculture and socio-economic development in the Republic of North Macedonia
Employment in agriculture and socio-economic development in the Republic of North Macedonia

Employment in agriculture and socio-economic development in the Republic of North Macedonia

Summary/Abstract: Agriculture is one of the sectors that absorbs a significant part of the labor force in the Republic of North Macedonia. Having this in mind the impact of employment in agriculture on the socio-economic development is observed in this paper, through the changes in the scope and structural features of the agricultural workers and relevant indicators for their developmental impact. The results of the analysis show that the impact of employment in agriculture on the socio-economic development of the country was and still remains modest. Mainly it is determined by the economic status of agricultural workers and very high vulnerability of the employment in this sector (85% of them in 2017 were self-employed and unpaid family workers). This suggests that there is "hidden unemployment" in agriculture, as well as informal employment on a large scale. The financial support in agriculture in the period 2011-2017 resulted in a slight increase of formal employment. Due to low income, employment in the agricultural sector does not have a significant impact on the growth of private consumption as a major determinant of economic growth in the country. Beside that this sector is characterized by low productivity and small share in the total gross added value e.i. relatively low impact on the economic growth rates.

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