Employment situation and labour productivity in Central and Eastern European agriculture

In 1990 the number of people employed in agriculture was substantially higher in the Central and Eastern European Countries than in the European Union, but labour productivity was lower. In order to adjust to a free market environment, which is a necessary part of the transformation process, employment in agriculture has to be reduced, and labour productivity increased. This paper studies the adjustment process in the Central and Eastern European countries, looking at how it has affected the number of people employed in agriculture, production, and labour productivity. Differences between individual countries are identified and explained. The findings are discussed and conclusions for the development of agriculture and rural areas are derived. A reduction in agricultural employment may result in higher unemployment.