Agriculture output up 34pc as jobless graduates join sector

Labour output in the agricultural sector has increased by over 30 per cent over the last two decades, which could be linked to unemployment rates in the country.

According to a new report by the think tank Kenya Institute for Public Policy Research and Analysis (Kippra), while the sector is slowly attracting a youthful generation willing to embrace technology and mechanisation, more unemployed graduates are going into agriculture.

Consequently, employers in this sector are getting a more polished workforce that may not be trained in that area but can perform better than secondary or primary school leavers.

This improvement in labour quality has led to increased productivity, although the report notes that the labour income share of agriculture as a percentage of the country’s Gross Domestic Product (GDP) has been shrinking.

The report shows that most workers in the sector are primary school leavers. However, some roles in the sector require graduates with specialised training.

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The Kenya Economic Report 2024, published in September, underscores the significance of young people in agriculture, highlighting their adaptability to technology and their potential to address the country’s unemployment crisis.

“They are more likely to adopt new technologies and sustainable farming practices, which can lead to increased productivity. Additionally, engaging young people in agriculture can help address the global challenges of unemployment and food insecurity,” the report states. The report shows that output per worker in the agricultural sector increased from Sh8,374 in 2002 to Sh11,218 in 2022, representing a 34 per cent increase.

“The rise in output per worker could be attributed to the quality of labour now entering the sector,” the report suggests.

It adds: “Due to high unemployment, even graduates are willing to accept low-paying jobs in agriculture to earn a living.”

Furthermore, the report notes that mechanisation in the sector has also contributed to the rise in output per worker. However, while productivity per worker has increased, the labour income share of agriculture as a percentage of GDP has been declining, from 45.44 per cent in 2010 to 37.76 per cent in 2020.

“This decline could be due to decreasing employment in the sector,” the report explains. Agriculture remains the largest contributor to economic growth in Kenya. According to the Kenya National Bureau of Statistics (KNBS) Economic Survey 2024, the sector contributed 21.8 per cent to Kenya’s GDP in 2023.

The sector also has a significant impact on other key areas of the economy, such as manufacturing, since many industries are food-based.

For a long time, agriculture has been associated with low skill levels. The Kenya Economic Report 2024 refers to these as “first-level skills,” which typically denotes workers with primary education. Workers with secondary school certificates are classified as having second-level skills, while those with vocational training hold third-level skills, and graduates represent the fourth level.

The report notes that certain parts of the agricultural sector require graduates. This is evident in the agriculturalists sub-group of the workforce.

“The agriculturalists sub-group has a distinct skills distribution, with 61.33 per cent of professionals at the fourth-skill level, reflecting the demand for high-level expertise in specific agricultural roles due to the advanced nature of their responsibilities,” the report states.

These professionals, including agriculturalists, horticulturists, forestry scientists, and soil scientists, conduct research, develop new concepts and theories, and apply scientific knowledge in crop management. While this holds true at the upper levels, most jobs in the sector are filled by individuals with 1st and second-level skills.

The report shows that 77.29 per cent of workers in the field crop, vegetable, and horticultural sub-group operate at the first-skill level, highlighting the prevalence of individuals with primary education in this area.

A similar trend is seen in the poultry, dairy, and livestock sub-group, where 76.16 per cent of workers are at the 1st skill level, with 11.73 per cent at the 2nd skill level.

In the crop and animal producers sub-group, 72.39 per cent of workers operate at the first-skill level, again emphasising the need for basic agricultural knowledge. According to the report, 1.09 per cent of workers in field crops and horticulture are fourth-skill-level holders, meaning they are graduates. In the poultry, dairy, and livestock sectors, graduates make up 2.04 per cent of the workforce.

Overall, 1.49 per cent of the workforce in crop and animal production are graduates, while 61.33 per cent of workers in agriculturalist roles are fourth-skill level professionals.

This suggests that graduates in agriculture-related fields are likely being paid less than their qualifications warrant due to limited job opportunities, whether within their field of study or in agriculture, where employment is shrinking. In total, 73.94 per cent of the agricultural workforce are at the 1st skill level, 17.87 per cent at the 2nd skill level, 6.25 per cent at the 3rd skill level, and 1.61 per cent at the 4th skill level.

“With the increasing modernisation of agriculture, skills related to agricultural technology, such as precision farming, data analysis, sustainable farming practices, value addition, digital marketing, and mechanisation, are expected to play an increasingly vital role in the sector,” says the report.