Sectoral Shifts of Employment in Pakistan: Analyzing the Decline in Agricultural Development and the Rise of Service Sector

Abstract

This study investigates the evolving employment landscape in Pakistan by analyzing the distribution of employment across agriculture, industry, and services from 2012 to 2022. The data reveals a notable shift from agriculture, which saw a decline in employment from 42.9% to 36.43%, to the industrial and service sectors, which experienced corresponding growth. This trend reflects Pakistan's transition from a primarily agrarian economy to one increasingly driven by industrialization and service-oriented roles, aligning with patterns observed in other developing economies. While this structural shift suggests economic advancement, it also poses challenges for rural communities dependent on agriculture. The study highlights the need for strategic workforce planning, skills enhancement, and supportive policies to ensure smooth transitions for the labor force. By facilitating the integration of workers into higher-productivity sectors, Pakistan can capitalize on these shifts to drive sustainable growth and economic resilience. The study concludes with a call for continued research on workforce dynamics and policy interventions to address emerging challenges in labor distribution and economic development.