Effects of increase in energy price on employment with emphasis on the agricultural sector

This paper aims to determine the effects of increase in energy price on employment of total economy with emphasis on agricultural sector as a result of elimination of subsidy of energy carriers. We used the latest available input-output table which is the 65-section table for the year of 2006. The result showed that total employment reduced by 6.232 percent. The maximum reduction of employment was in fertilizers and pesticides subsector (36.075 percent). Also, reduction of employment in agriculture sub-sectors was highest in horticulture and agronomy sub-sectors with 10.83 percent and after that in fishing (2.945 percent), livestock (2.621 percent) and forestry (0.233 percent). Effects of increase in energy price on employment of final demand components showed that it was negligible in agriculture sector.