Table 2.31: Change in Employment Structure by Major Industries (economically active pop ulation 10 years of age andabove)1991 2001ChangeIndustryNumber % Number % (%)Agriculture, forestry, and fishery 5,959,788 81.22 6,504,688 65.70 9.14Mining and quarrying 2,361 0.03 16,049 0.16 579.75Production and industry 150,051 2.04 872,252 8.81 481.30Electricity, gas, and water supply 11,734 0.16 148,217 1.50 1163.14Construction 35,658 0.49 286,419 2.89 703.24Hotels, restaurants, and finance 256,012 3.49 984,662 9.95 284.62Transport, storage, and communications 50,808 0.69 161,637 1.63 2<strong>18</strong>.13Real estate, renting, and business activities 20,847 0.28 76,687 0.77 267.86Public administration and social security 752,019 10.25 748,916 7.56 (0.41)Other 98,302 1.34 100,669 1.02 2.41Total population 7,337,580 100.0 9,900,196 100.0 34.92Source: CBS (2003) Volume I, pp. 341 –371.Table 2.32: Percentage Distribution of EconomicallyActive Population by Major Industrial Sectors and Region,2001Industry Mountain Hill TeraiAgriculture, forestry, and fishery 80.7 68.5 59.8Mining and quarrying 0.1 0.2 0.2Manufacturing 5.3 8.1 10.2Electricity, gas, and water supply 1.3 1.5 1.6Construction 1.2 2.2 4.0Commerce 6.2 8.9 11.8Transport and communication 0.6 1.4 2.1Finance and business activities 0.2 0.8 0.9Personal and community services 3.8 6.9 7.0Others 0.5 1.3 2.2Not Stated 0.2 0.3 0.2Source: CBS (2003) Volume I, pp. 341 –371.the “non-primary production sector”. The primarysector has dominated in terms of employment inboth rural and urban areas (Table 2.33). However, thepercentage share of primary sector employmentdecreased in both rural and urban areas from 1991 to2001.Though the primary production sector’scontribution to GDP is less than that of the nonprimaryproduction sector (Table 2.34, Figure 2.3),the share of the former (38% in 2001) is stillsignificant. The non-primary sector’s contributionincreased to 62% of total GDP ($5.6 billion) in 2001from 54% in 1991.The primary production sector remains animportant source of livelihood for most rural peopleof Nepal. Table 2.35 shows that 36.5% of allTable 2.33: Percentage Distribution of EconomicallyActive Population by Major Industrial Sector for Ruraland Urban Areas, 1991 –20011991 2001 CountrySectorRural Urban Rural Urban 1991 2001Primary 85.5 60.9 72.3 42.2 81.2 65.7Secondary 1.9 12.4 10.2 <strong>18</strong>.0 2.6 11.9Tertiary 11.4 26.1 17.4 39.6 15.0 22.2Unspecified 1.2 0.6 0.2 0.3 1.2 0.2Source: CBS (2003) Volume I, pp. 341 –371.households had agricultural land, livestock, andpoultry in 2001; households with only agriculturalland and livestock were 29%; and households withonly agricultural land were 9%. Households withoutany of these assets (land, livestock, or poultry)accounted for 19%. The share of agriculturalhouseholds with all three agricultural assets is largestin Mountain and Hill areas and that of householdswith land and livestock in Mountain and Terai regions(the most common group overall in the Terai).Employment and Income StatusEmployment source is classified into three majortypes: wage employment, self-employment, andother (NLSS 2004). Self-employment is the majorsource of income in Nepal, accounting for 47% oftotal household income. It is even more dominant inrural areas (50%) and in the Mountains (60%).Income from wage labor is most important in urbanareas, accounting for 35%. Wage income and othersare the second and third important sources for thecountry, rural areas, and all three ecological regions;while in urban areas income from other sources isnext to wage employment.24 Environment Assessment of Nepal : Emerging Issues and Challenges
Figure 2.3 Contributions by the Primary and NonprimaryProduction Sectors to National GDPSource: CBS (2003)Table 2.34: Contribution to GDP by Sector (%)Sector 1991 2001Agriculture, fisheries, and forestry 46.5 37.9Mining and quarrying 0.5 0.5Manufacturing 7.0 9.5Electricity, gas, and water 1.4 1.7Construction 10.5 9.5Trade restaurant and hotel 10.7 11.8Transport and communication 5.7 7.6Finance and real estate 9.5 10.0Community and social service 8.3 9.3Total 100.0 100.0GDP = gross domestic productSource: CBS (2003) Volume I, pp. 341 –371.Table 2.35: Households Having Agricultural Land, Livestock, and Poultry by Region, 2001AssetMountains Hills Terai TotalNo. % No. % No. % No. %Agricultural land only 17,444 6.12 142,744 7.32 226,053 11.66 386,241 9.25Livestock only 1,877 0.66 16,010 0.82 104,896 5.41 122,783 2.94Poultry only 945 0.33 8,024 0.41 15,371 0.79 24,340 0.58Land and livestock 91,989 32.25 460,488 23.60 636,117 32.82 1,<strong>18</strong>8,594 28.47Land and poultry 3,517 1.23 23,156 1.19 25,573 1.32 52,246 1.25Livestock and poultry 2,539 0.89 15,735 0.81 52,278 2.70 70,552 1.69Land, livestock, and poultry 150,975 52.93 922,689 47.29 453,339 23.39 1,527,003 36.58None 15,927 5.58 362,345 <strong>18</strong>.57 424,343 21.90 802,615 19.23Total 285,213 100.00 1,951,191 100.00 1,937,970 100.00 4,174,374 100.00Source: CBS (2002a)Income 3 sources according to NLSS 2004include farm income, non-farm income,remittances, consumption of own dwelling (or rentfree dwelling), and others (renting out nonagriculturalproperty like buildings or assets,earnings, savings and deposit accounts, shares,pension, and so on). Income from the farm sectoraccounts for 48% of total household income,followed by the non-farm sector (28%), remittances(11%), consumption of own housing (10%) andothers (4%) (Table 2.36). The farm sector is the mostimportant source of household income in all threeregions, in rural areas, and in the country as a whole.The Mountain area is the most dependent on thefarm sector, followed by the Terai.There is an increasing trend of income fromremittances. The proportion of households receivingremittances from abroad increased from 23% in1995/96 to 32% in 2003/04. There has been a significantchange in the share of remittance amounts by source.Table 2.36: Share of Household Income by Source (%)RegionFarmIncomeNonfarmIncomeRemittancesOwn HousingConsumptionOtherMountain 59 19 9 10 3Hill 45 28 11 12 5Terai 49 28 12 8 3Rural 55 23 11 8 3Urban 13 54 10 17 6Nepal 48 28 11 10 4Source: NLSS (2004) Vol. 2, Table 11.2 .Eight years ago, the remittance amount from withinNepal and India accounted for 75% of total transferincome. Now, the share of other countries includingthe Gulf countries accounts for more than half of thetotal remittance amount (NLSS 2004).3Income was defined as the flow of resources in a household in the past 12 months. The main components considered in the income measure are incomes from crops,non-crop farm, reported valuation of housing consumption of own dwelling, wage employment, non-farm employment, remittances, rental, and other sources.Chapter 2: Rural Environment, Poverty, and Livelihood25
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