The rural households of Punjab and Haryana were predominantly employed in the agriculture sector in the pre-reforms era. Later during the period of study (1993–94 to 2011–12), the examination of NSSO data reveals that there has been a major shift away from agriculture activities and that shift occurs towards non-farm employment (RNFE) in Punjab while towards RNFE and particularly regular salary earning in case of Haryana. The rural non-farm sector in recent times is considered to be an effective strategy for decentralization of economic activities to India and to check the migration of people to urban areas. Though employability is a function of a number of factors like level of education and type of degree, job seekers’ physical and mental status, mobility of labour, and availability of coordinating factors of production like capital, entrepreneurship and stage and rate of growth of the economy (Chhaya, 2016). Yet the significance of education/skills to increase access to rural non-farm employment cannot be undermined. Improvement in the level of education develops the human capital as well as capacity and hence the chances of employment in an RNF activity. It also leads to a change in priorities, which always shift away from agriculture (Vatta and Garg, 2008). Moreover, better-educated individuals are likely to possess skills that facilitate successful involvement in non-farm activities, including the ability to manage a business, process relevant information, adapt to changing demand patterns, and liaise with public and private service providers (Wandschneider, 2003).