The Sanjiangyuan region is a typical ecologically vulnerable region. Although environmental initiatives in the region have had positive results, criticism has arisen that one of these, the ecological migration policy, did not achieve the desired results regarding the transition to off-farm employment and livelihoods. This study examined key factors influencing the engagement of pastoralists in the Sanjiangyuan region in off-farm employment. Binary logit and probit models were adopted along with in-depth household surveys in the Sanjiangyuan region to support the quantitative and qualitative analyses. The results indicate that off-farm employment in the region is generally not significant (18.13% of the investigated households had members working in off-farm sectors), and that education and government subsidies have had significantly positive effects on engagement in off-farm employment, while the number of livestock and the distance between house and town have had significantly negative effects. These results suggest that it is necessary to establish more financial support for off-farm employment and livelihood transitions, in addition to strengthening ecological compensation. Promising approaches could include offering different types of skill training and increasing employment opportunities in off-farm industries.