EFFECT OF AGRICULTURE ON UNEMPLOYMENT: EVIDENCE FROM SELECTED SADC STATES

Abstract

The main aim of this paper was to examine the efficacy of agriculture as a source of employment. The paper drew attention from the fact that agriculture is seen as an employment creator. Background: Agriculture sector remains of major social and economic importance in the SADC region and the performance of agriculture has a strong influence on the rate of economic growth, the level of employment, demand for other goods, among other things. However, in Southern Africa one of the major socio-economic issues the region is still grappling with to date remains the persistently high unemployment level. Material and Methods: The study used a panel data and a GMM panel technique was used to analyse the study’s findings. The study used quantiative seconday data. Annual data was sourced from the World Bank and from the United Nations Development Programme (UNDP). The sample included five SADC countries (Zimbabwe, Mozambique, Lesotho, Eswatini and DRC) for the years 2005-2015. Results: Results showed that a negative relationship between AGR and unemployment. This shows that when agricultural production increases, unemployment decreases. Conclusion: The study recommends that governments in Southern Africa provide more support for agriculture in order to boast performance. A comprehensive agricultural growth strategy that promotes competitive and efficient production and marketing systems may therefore be the foundation of an effective employment expansion strategy for most Southern African governments.