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This paper examines the diversification of the employment scenario in the state of Punjab by utilising secondary data sources collected from various government and non-governmental sources. The results of the study show that the economy of Punjab has gone through the process of structural transformation which is revealed from the changing pattern of per capita contribution in net State Domestic Product. However, the economy of Punjab has not witnessed any transformation in terms of employment generation. In this sense, the rural population in the state of Punjab largely depends on the agricultural sector. The study also identified the major factors that contributed towards the non-farm employment generation in the state of Punjab. The empirical results of the study highlighted the level of education, values of non-farm assets, and the distance of the village from the nearest town as the major contributors towards rural non-farm sector. Based on the findings, the study suggests that efforts should be made to enhance infrastructural facilities to enhance the participation in the non-farm activities. Along with this, there is a dire need to strengthen the farm and non-farm linkages to enhance better opportunities for employment in rural areas of Punjab.

Keywords

Diversification, Non-Farm Employment, Infrastructure.
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