Relating to, or not involving, agricultural activities or the production of agricultural products. This term broadly encompasses various sectors beyond traditional farming, including manufacturing, services, construction, and government. It's often used in economic analysis to distinguish economic activity that is generated outside of the agricultural industry, offering a view of the economy excluding crop and livestock production. Understanding non-farm activities is vital for assessing economic growth and employment trends, providing insights into the diversification and overall health of an economy.
Non-farm meaning with examples
- The government's economic report focused heavily on non-farm payrolls, illustrating the expansion of the service and technology sectors. These non-farm figures are used in order to assess employment levels and gauge the strength of the job market, excluding the influence of fluctuating farm employment figures. Investors closely watch these figures for signs of economic growth or contraction, which helps them decide where to invest.
- Analysts predicted a rise in non-farm business investments, suggesting a potential acceleration in overall economic activity. This contrasted with a stable outlook for agriculture. This non-farm spending indicated companies’ confidence in the future, including expansion in areas like real estate and manufacturing, and suggested positive indicators.
- The city’s economy demonstrated a shift from farm-based industries to non-farm industries, primarily in the technology and healthcare sectors. This transformation resulted in an increase in higher-paying positions and a decrease in the relative importance of the agricultural sector, illustrating a shift in the labor market's structure.
- Unemployment rates are often compared with the performance of non-farm sectors to understand job market dynamics. A rise in non-farm employment usually correlates with an improved unemployment rate, and therefore better economic prospects and greater investment for the future, helping in the assessment of public policy.
- During the recession, many non-farm businesses struggled to survive. This highlighted the sensitivity of those industries to economic downturns. Those that survived had to innovate to continue serving their customers. The strength of non-farm production often serves as a bellwether for how fast recovery can happen.