Unemployment In Pakistan

Unemployment is a sensitive and most commonly faced problems of Pakistan. Most of the natives are suffering from this depression referred to as ‘unemployment’. Many Pakistani graduates are talented, intelligent, and skilled yet don’t get an opportunity to work. Currently, more than 3 million Pakistanis are unemployed and the ratio is more than 12%. There are many students who move abroad for work after getting degrees. Pakistan is fortunate enough to have valuable human capital but unfortunately due to lack of opportunities most of them leave the country.

The biggest reason of unemployment in Pakistan is due to the backwardness of agriculture sector that accounts for 20.9% to the country’s GDP and over 44% get employment from this sector either directly or indirectly.

Causes of Unemployment

There are countless reasons behind the menace of unemployment in Pakistan. Let’s highlight some of the significant ones here:

Over Population

Uncontrolled and ever increasing population of Pakistan is certainly challenging. According to the statistics, the population of Pakistan is increasing by 2.2%. The factors responsible for overpopulation are illiteracy, early marriages, desires for sons, lack of awareness etc. More than one million people enter the job market each year. Hence rate of unemployment is increasing year after year.

Inadequate Education System

The education system in Pakistan has been ineffective since the time of independence. No practical and effective educational policy is formulated and followed to improve it. The system is highly imbalanced as we can see government & private education system. There is a lack of technical education and many universities do not provide latest and most trending degree programs. Therefore people are wondering about for jobs due to lack of experience and skills.

Terrorism & Political Instability

Unemployment in Pakistan aggravated due to the problem of terrorism and political instability. This has resulted in destruction of institutions, and affected the peace and economic growth of various regions. This is the key reason that international investors refrained from investing their capital in Pakistan. Many factories has closed owing to suicide explosion, where lots of people work to earn money for their lives, because of explosion so many people unemployed, on the other hand, production of different things went down and closing of factories caused to rise more unemployment.

Due to the dedicated efforts of security forces & agencies, peace of Pakistan is somehow restored and this has helped in development of CPEC and created employment opportunities in the region. This can somehow control the level of unemployment in Pakistan.

Energy Crisis

Pakistan is blessed with plenty of natural resources and is an atomic power, still faces energy crisis. There are many sources of producing energy in Pakistan but due to lack of proper planning, efforts, and corruption, Pakistan is having problem of energy crisis. The government of Pakistan is unable to provide electricity to residential areas in Pakistan and similarly, the industrial sector is severely affected. Therefore factories and industries that require energy are transferring their business in other Asian countries like Bangladesh, India and Sri Lanka. As a result, huge labor force has become the victims of unemployment.

Pakistan Unemployment Rate

Unemployment Rate in Pakistan declined to 5.90 percent in the fourth quarter of 2015 from 6 percent in the fourth quarter of 2014. It averaged 5.46 percent from 1985 until 2015, reaching an all time high of 7.80 percent in the second quarter of 2002 and a record low of 3.10 percent in the fourth quarter of 1987. In Pakistan, the unemployment rate measures the number of people actively looking for a job as a percentage of the labor force.

This graph provides you Pakistan Unemployment Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.
 


Note: This Article originally written on 26 October 2009 by Ata Rehman Zaki, it has been modified recently by Hamariweb Editors' team with slightly changes of data and updated info according to recent updates.

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Ata Rehman Zaki
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