LIVELIHOOD- DEFINITION, CONCEPT AND
LIVELIHOOD PATTERN IN URBAN AND
RURAL AREAS
Farming based Livelihood System
Definition of livelihood
• A livelihood refers to the means through which an individual or household
makes a living. It encompasses the resources (such as skills, knowledge, and
assets) and the activities (such as employment, agriculture, or trade) that
people undertake to earn income or gain resources that support their life.
• Chambers and Conway (1992) defined livelihood as “the capabilities, assets
(both material and social resources) and activities required for a means of
living”.
Concept of livelihood
• The concept of livelihood goes beyond income generation and focuses
on a more holistic understanding of the way people secure the
essentials of life such as food, water, shelter, clothing and access to
education and healthcare. It also includes social, cultural and
environmental dimensions.
• Key components of the livelihood concept involve:
• Assets: Tangible and intangible resources that individuals or households have
access to. These include land, livestock, cash, skills, social networks and
education.
• Activities: The specific actions that individuals or households undertake to
meet their needs such as farming, trading, labouring or working in industries.
• Capabilities: The ability of individuals or households to use their assets
effectively to generate income and secure their livelihood. This can include
knowledge, skills, health and access to services.
• Livelihood patterns in rural areas.
• Rural areas are characterized by a greater dependence on natural
resources and agricultural activities.
Aspect Rural livelihoods Urban livelihoods
Primary actvities Agriculture, fishing, forestry, artisanal work Industry, services, retail, small
enterprises
Land and Natural Heavily dependent on land and natural Limited dependence on natural
Resources resources resources, more industrialized
Income stability Seasonal and climate-dependent; often low More diverse opportunities but often
and fluctuating unstable in the informal sector
Migration patterns Migration to urban centers or other rural Migration within or to other urban areas
areas for work. for better opportunities.
Government support Schemes like MGNREGA, agriculture Urban employment schemes, social
subsidies, rural development programmes security programmes, housing subsidies
Livelihood patterns in rural
areas
• Rural areas are characterized by a greater dependence on natural
resources and agriculture activities. The primary livelihood patterns
include:
• Agriculture: Farming is the dominant livelihood activity in rural areas,
where households engage in the cultivation of crops such as rice, wheat,
maize and various cash crops like cotton and sugarcane.
• Livestock rearing: Many rural households supplement their income
through raising livestock including cattle, sheep, goats and poultry.
• Fisheries: In coastal and rural low lying areas, fisheries has become
viable livelihood option. This include rearing of fish seed and different
types of fishes.
• Forestry: Forest based activities are the key livelihood options. This
includes collection of forests products (such as timber, fuel wood,
medicinal plants, honey etc.)
• Rural non-farm employment:
• Artisanal activities: In many rural areas, traditional crafts, weaving,
pottery, and handloom production provide employment.
• Casual labour: Many rural households supplement their income by
working as casual labourers in construction, transportation and small-
scale manufacturing.
• Rural enterprises: Small shops, milling units, repairing services and
other enterprises contribute to rural livelihoods.
Livelihood pattern in urban
areas
• Formal employment:
• Industries and manufacturing: A large portion of the urban workforce is employed in
manufacturing units, textile industries, electronics and other industrial sectors.
• Service sector: The urban economy is increasingly service-driven with a significant
portion of the population employed in sectors like finance, education, healthcare,
retail and IT services.
• Public sector jobs: Government employment including jobs in education, healthcare,
law enforcement and municipal services, forms a stable source of livelihood for many
urban households.
• Public sector employment and schemes
• Programmes like Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA) provide guaranteed employment for a
certain number of days annually to rural households, ensuring a
fallback option for income generation.
• Government schemes focused on improving rural infrastructure
(roads, electricity, irrigation) also create employment opportunities.
• Self employment and entrepreneurship
• Small and Medium Enterprises (SMEs): Urban areas offer opportunities
for self-employment including running small shops, tailoring, carpentry,
repair services and other entrepreneurial services.
• Online and Gig economy: The growth of technology and digital
platforms has introduced new livelihood patterns in urban areas
including freelance work, gig economy jobs (like food delivery and ride-
sharing), and online businesses.
