Livelihood: Definition, Concept, and Livelihood Pattern in Urban and Rural Areas

1. Definition of Livelihood

The term “livelihood” refers to the means, activities, and resources by which people secure the necessities of life — such as food, water, shelter, and clothing. It encompasses both the capabilities (skills, education, and health) and the assets (natural, physical, human, financial, and social) that individuals or households use to sustain their living.

Standard Definitions:

• Chambers and Conway (1992): “A livelihood comprises the capabilities, assets (including both material and social resources) and activities required for a means of living. A livelihood is sustainable when it can cope with and recover from stresses and shocks, maintain or enhance its capabilities and assets, and provide sustainable livelihood opportunities for the next generation.”
• DFID (1999): A livelihood consists of “the assets, activities, and access to these that together determine the living gained by the individual or household.”

2. Concept of Livelihood: Livelihood is a multidimensional concept that goes beyond income generation. It includes:

• Employment and income
• Social status and security
• Access to education, health, and other basic needs
• Sustainability and resilience in the face of risks (climate, economic, social)

Key Elements of a Livelihood:

• Assets: Resources people own or have access to (land, livestock, tools, skills, networks, etc.)
• Activities: Economic or productive work that generates income or sustenance (farming, trading, labor, etc.)
• Access: The ability to use resources and opportunities determined by institutions, policies, or social norms.

Sustainable Livelihood:

A livelihood is considered sustainable when it:

• Can cope with shocks and stresses (e.g., drought, price fluctuations)
• Maintains productivity over time
• Does not degrade the natural resource base
• Enhances social equity and future opportunities

3. Components of Livelihood

The Sustainable Livelihood Framework (SLF) identifies five types of livelihood assets, often visualized as a “pentagon”:

4. Livelihood Pattern in Rural Areas

Rural livelihoods are predominantly agrarian but often diversified due to fluctuating income and employment opportunities.

a) Major Features:

• Agriculture-based economy: Majority depend on crop cultivation, livestock rearing, and allied sectors.
• Seasonal employment: Income is irregular; farmers often face lean seasons.
• Resource dependency: Heavily reliant on natural resources like land, water, and forests.
• Informal sector dominance: Most work is unorganized with limited job security.
• Subsistence-oriented production: Farming and livestock activities are primarily for household consumption.

b) Common Rural Livelihood Activities:

c) Rural Livelihood Diversification:

Due to low income from farming, rural households adopt multiple sources of livelihood, such as:

• Wage labor (agricultural and non-agricultural)
• Migration to urban areas
• Small-scale enterprises and self-employment
• Government welfare or MGNREGA programs

d) Government Initiatives Supporting Rural Livelihoods:

• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) Provides 100 days of guaranteed wage employment.
• National Rural Livelihood Mission (NRLM) Promotes self-employment and SHG-based micro-enterprises.
• Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) Skill development for rural youth.
• Integrated Farming Systems (IFS) Diversifies farm income through crops, livestock, fisheries, etc.

5. Livelihood Pattern in Urban Areas

Urban livelihoods are diverse, monetized, and service-oriented, but also face issues like job insecurity and inequality.

Major Features:

• Non-agricultural economy: Livelihoods are mainly in industry, trade, transport, and services.
• Monetized transactions: Cash-based economy with regular wages or salaries.
• High cost of living: Shelter, food, and transport expenses are major.
• Greater livelihood diversity: From formal jobs to informal self-employment.
• Vulnerability of informal workers: Street vendors, daily wage earners, and domestic workers lack job security.

• Common Urban Livelihood Activities:

Characteristics of Urban Livelihoods:

• Skilled-based employment: requires education and technical expertise.
• Greater income opportunities but also greater inequality.
• Migration-driven population: rural-to-urban migration for jobs.
• Dependence on urban infrastructure: water, electricity, and transport are vital.

Challenges in Urban Livelihoods:

• Unemployment and underemployment
• Lack of affordable housing
• Occupational health hazards
• Limited access to credit and social protection
• Informality and lack of job security

6. Comparative Analysis of Rural and Urban Livelihoods

7. Sustainable Livelihood Approach (SLA)

The Sustainable Livelihood Approach emphasizes empowering people to use their resources effectively and sustainably.
It focuses on:

• Enhancing access to assets (financial, physical, social)
• Strengthening local institutions and networks
• Promoting equity, participation, and resilience
• Reducing vulnerability to economic or environmental shocks

Core Principles of SLA:

• People-centered: focuses on needs and priorities of the poor.
• Participatory: encourages community involvement.
• Multi-level: addresses policies, institutions, and processes.
• Sustainability-oriented: balances economic, social, and ecological aspects.