The sensitivity of UK agricultural employment to macroeconomic variables 1960-1966

Abstract

In the UK agriculture continues to have a major impact on the landscape, occupying 77% of the total land area, but its direct contribution to national enlployment is rIlarginal. In 1996 the agricult ural sector accounted for 1. 7% of the British workforce, down from 2.1 % in 1981 and 2.5% in 1971. Some of the reasons for this are the UK's early industrialisation as well as the distinctive inheritance traditions, which have prevented the progressive fragmentation of landed property. Nlore fundanlentally the continued decline can be attributed to the fact that (1) food comprises a decreasing proportion of household spending as incomes rise. and (2) the increase in technology which has led to the substitution of farm labour by various forms of capital.