Land Use and Production Practices Shape Unequal Labour Demand in Agriculture and Forestry

Una Diana Veipane, Irina Pilvere (), Jüri Lillemets, Kristine Bilande and Aleksejs Nipers
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Una Diana Veipane: Faculty of Economics and Social Development, Latvia University of Life Sciences and Technologies, Svetes Street 18, LV-3001 Jelgava, Latvia
Irina Pilvere: Faculty of Economics and Social Development, Latvia University of Life Sciences and Technologies, Svetes Street 18, LV-3001 Jelgava, Latvia
Jüri Lillemets: Institute of Agricultural and Environmental Sciences, Estonian University of Life Sciences, F. R. Kreutzwaldi Street 5, 51006 Tartu, Estonia
Kristine Bilande: Faculty of Economics and Social Development, Latvia University of Life Sciences and Technologies, Svetes Street 18, LV-3001 Jelgava, Latvia
Aleksejs Nipers: Faculty of Economics and Social Development, Latvia University of Life Sciences and Technologies, Svetes Street 18, LV-3001 Jelgava, Latvia

Land, 2025, vol. 14, issue 10, 1-26

Abstract: Agriculture and forestry remain vital sources of rural employment; yet, both sectors face challenges of low labour productivity, demographic change, and structural inefficiencies. Modernisation improves productivity but often reduces labour demand, creating a policy dilemma between innovation and job preservation. Therefore, this study aims to quantify labour input across different land use types and farm sizes in agriculture and forestry. Latvia was used as a case region representing a sparsely populated territory suitable for both agricultural activities and forestry. This study develops a multi-stage framework to quantify labour inputs across agricultural and forestry land uses. The research findings suggest that labour use intensity decreases as farm size increases; however, it exhibits greater variation across agricultural production types. Perennial plantations, vegetable and potato cultivation, and dairy farming show the highest labour demands, whereas energy crops and grass-based systems require the least. In forestry, establishment and tending dominate labour needs, while mechanised harvesting reduces input requirements. These findings highlight the strategic role of labour-intensive, high-value activities in sustaining rural employment and the need for targeted rural development policies that recognise this pattern, supporting employment in rural areas without discouraging improvements in labour productivity.

Keywords: labour input; labour demand; land use; agriculture; forestry (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jlands:v:14:y:2025:i:10:p:2097-:d:1776314

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