This study analyzes the nature and role of rural nonfarm employment in development. It also traces the growth of nonfarm activities in the Philippines and determines the extent of their contribution to the transformation of the rural sector. In particular, it describes the structure of nonfarm activities in the rural sector and how this structure changes overtime. It also assesses the impact of nonfarm employment on the rural economy interms of changes in the structure of labor utilization, production/output and household income. Further, it determines the increasing commitment of rural workers to nonfarm work and identifies possible bottleneck that may hamper the growth of nonfarm activities. Overall, the paper hopes to provide a more systematic basis for a stronger advocacy of nonfarm activities in the rural areas.
