The present paper attempts to estimate the labour employment and resource use efficiency in rubber plantations of Dakshina Kannada district of Karnataka State. Labour employment ,was estimated by converting all the labour employed into mandays of 8 hours giving due weightage for the wage differences and then converting it back into manhours. Resource use efficiencies of labour, fertilizers, plant protection chemicals and capital employed in both small and large farm groups were estimated. The results of the study strengthen the case of rubber cultivation in Dakshina Kannada district with respect to the creation of employment opportunities. This being a new area, the suboptimal use of resources found in the study area may be due to the lack of proper knowhow of rubber cultivation among the farmers. Improved cultivation practices along with proper extension services would make rubber a more profitable enterprise in the locality.