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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Reviews & Comments
Many individuals in our society don’t want to work and earn honestly. Meanwhile they blame the system for their on lacking and incapability to do work.
By: sara, Karachi on Jan, 14 2018
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Nice article about Shah jahan. He is remembered for the love he possessed for his wife. He made an exclusive symbol of love taj Mehal and showed the world that love is the true treasure a man can have.
By: Shazia, isl on Jan, 12 2018
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Major cause as stated by the writer is increasing population without any increase in basic resources. Also, the criteria for the employments are very high. This issue is depressing people nationwide.
By: Shazia, Rawalpindi on Jan, 10 2018
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Yes, it's true that every adjacent state has an eagle eye about the CPEC, when it's complete it can give a good venue to the foreign companies to the investment in Pakistan. CPEC will helps to reduce the unemployment rate in Pakistan.
By: mohsin, khi on Dec, 26 2017
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Due to the mismanagement of the Governement and the shortage of the resources, unemployment in Pakistan is increasing day by day but definitely the role of terrorism may be a big reason to make state's economy unstable.
By: pervez, khi on Dec, 20 2017
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I think the political instability is the main cause of unemployment in Pakistan, due to the instability, foreign companies feels hesitation to invest in Pakistan, even many local companies and firms effected with unsuccessful policies of the Government, its real cause of unemployment.
By: haneef, khi on Dec, 10 2017
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Pakistan's future is looking good as an employment point of view because many of the foreign countries shows their interest to invest in Pakistan after the CPEC and Gwadar development in Pakistan, I think it helps to reduce the ratio of unemployment in Pakistan.
By: ZAINAB, khi on Dec, 04 2017
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I think unemployment is a bigger problem for Pakistan than terrorism. I think Pakistan need to work on this issue on a bigger level. Due to severe unemployment in Pakistan our young talent is moving abroad in search of better opportunities.
By: Gulnaz, Karachi on Sep, 27 2017
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Unemployment in Pakistan is certainly the best thing to ask for. I am all impressed by the way things are proceeding to make an impact in the education section and improve the employment opportunities for the youth,.
By: Veena Nadeem, Karachi on Sep, 25 2017
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Pakistan should focus to get control on the energy crisis, due to the shortage of energy, the ration of an Unemployment is going to increase in Pakistan.
By: asad, khi on Sep, 18 2017
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Government organizes many energy sectors in all the provinces of Pakistan to get control the energy crisis in Pakistan, I hope due to this effort the ratio of Unemployment will decrease soon if Pakistan can success to rehabilitate the industrial growth once again.
By: shoaib, khi on Sep, 14 2017
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In my opinion, the reasons for unemployment in Pakistan keeps on increasing and every time new reasons makes it to the list. I hope that we overcome all the hurdles and develop the job opportunities for masses in our country.
By: Huma, Karachi on Sep, 11 2017
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Due to the shortage of basic resources like water, gas and electricity; many industries wind up their business, these are the big cause of an unemployment in Pakistan. Government should contribute the give it best for providing basic resources.
By: zubair, khi on Sep, 11 2017
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This is the dilemma of our nation as we are unable to cope up with the menace of unemployment still in 2017. Many young talent goes waste due to this national problem.
By: Rida, Lahore on Jul, 17 2017
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The graph level of Unemployment was so increased between 2012 to 2014, I think it was the reason of the shortage of basic resources. We remembered that due to the load shedding crisis, many of the large scale industries and firms wind up their business from Pakistan.
By: ijaz, khi on May, 25 2017
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I can't tell you how much happy I am to access the detailed write up on unemployment in Pakistan. This article has rightfully classified the main causes behind this menace in a proper manner.
By: Hafsa, Karachi on May, 25 2017
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Pakistan is the Country with full of Natural resources, but lack of planning is the major cause of energy crisis, due to this reason the graph of unemployment ratio is also increasing in Pakistan.
By: kaleem, khi on May, 24 2017
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Let see, what will be the statistics of current census in Pakistan shows the Unemployment ratio and its main reason, but in my opinion, Political Instability in Pakistan is the main cause of unemployment.
By: waqar, khi on May, 24 2017
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Unemployment In Pakistan is the main reason of snatching and thefting in Pakistan. Peoples who are well qualified, but could not success to work in their position due to the shortage of resources. I think the government role is very important in this sector.
By: usman, khi on May, 11 2017
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Understanding the sources of unemployment has proved one of the major challenges of modern macroeconomics. Voluntary unemployment may be or when qualified people chose not to work out the going wage rate unemployment occur. 
By: mehwish, gilgit on Jan, 09 2017
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