This article examines the structural transformation trajectory in Zambia since independence. Drawing from sectoral analysis of the structure of output and the composition of labour over the last five decades, the article illustrates that although there have been shifts in the composition of output and labour in the economy, especially since 2000, these shifts have not contributed to positive structural transformation. Instead the economy has been experiencing widening productivity gaps between sectors, signalling perverse economic structural transformation. Although there have been some slight improvements in the overall productivity since 2000, productivity in the agriculture and informal sectors, where almost 85% of the labour works, has remained stagnantly low. This is compounded by the economy experiencing a net movement of labour from high to low-productivity employment, mainly the informal urban sector