Prime Minister Shehbaz Sharif recently announced that the government is working on a policy aimed at lowering unemployment by providing the youth with professional skills and fostering private sector involvement, as these are the key elements for enhancing job opportunities in the country. This is welcome news because joblessness, especially among the educated youth, has become a serious issue, causing economic distress and social unrest.

According to official estimates, unemployment in Pakistan hovers around 6 percent, but this figure does not include the number of unemployed people. A large portion of the working-age population is stuck in low-paying, menial jobs. According to the Pakistan Economic Survey 2023-24, as many as 4.5 million individuals are unemployed in the country, with the youth aged 15-24 having the highest unemployment rate of 11.1 per cent. These figures are based on the 2020-21 Labour Force Survey, after which no employment survey has been conducted during the last three years.

According to the survey, the total labour force stands at 71.8m — 48.5m in rural areas and 23.3m in urban areas. The employed labour force is 67.3m: 45.7m rural and 21.5m urban, while 4.5m are unemployed. Moreover, the unemployment ratio is higher amongst females, with 14.4pc of women unemployed compared to 10pc men. The 25-34 age group has the second-highest unemployment rate of 7.3pc.

An important aspect of the employment situation in the country, as revealed in the survey, is that it has changed over the decades due to technological advancement. Previously, the agriculture sector was the major source of employment with a 37.4pc share of the total. However, the share of employment in the agricultural sector has shifted to the industrial and services sectors due to technological development. Now the services sector is the largest growing segment of the economy. According to the survey, a country’s capacity to generate employment depends upon its available resources, technological base and advancement, and institutional strategies. Similarly, human resources, skills, and technical competence determine the type of employment that can contribute to sustainable economic growth. But, unfortunately, skill development is an area which we have continuously neglected.

In the overall context, the issue is not merely that of a lack of jobs but the absence of adequately trained manpower to fill existing vacancies. This mismatch between labour supply and market demand underscores the urgent need for an overhaul of Pakistan’s technical and vocational education system, with the establishment of polytechnic institutes at the heart of this reform. Pakistan boasts a young population, which is a demographic dividend, but this potential remains unrealised as the majority of educated youth lack the skills in demand.

Without further delay, we need to create a countrywide network of technical-cum-vocational institutes to provide our youth specialised training in various fields to bridge the skills gap. Countries like Germany, South Korea, and China are examples of the transformative impact of polytechnics on their economies. Technical education centers can produce a steady stream of skilled workers to many industries ranging from manufacturing to IT, agriculture, and renewable energy. Setting up polytechnic institutes across Pakistan should therefore be a top priority for policymakers. These institutions should develop appropriate programmes tailored to the needs of various sectors like electronics, mechanical engineering, IT, and healthcare. Polytechnics can also play a pivotal role in upskilling existing workers, enabling them to adapt to the changing demands of the labour market. As we know, communication, teamwork, and problem-solving skills have a special value in the modern workplace and must be part of any comprehensive training programme. Additionally, regular monitoring and evaluation of these institutes can ensure that they remain responsive to the evolving needs of the economy.

Needless to say, a skilled workforce is key to lifting millions out of poverty and reducing income inequality. Empowering our youth is an investment in the future, ensuring that Pakistan can compete in a rapidly changing global economy. Lately, responding to the challenge of widespread joblessness in the country the government has taken some measures like the National Vocational and Technical Training Commission (NAVTTC)  skill development-related initiatives, especially the Prime Minister’s Youth Skill Development Programme to create a well trained globally competitive workforce. The youth skill initiative is a Rs4.9 billion programme for skill training in 39 IT, 53 industrial, and 34 hardcore skills, which currently enrols as many as 56,000 youths. The programme targets both the domestic and international job markets, especially the Middle East, the European Union, and far-eastern states like Japan and South Korea.

Addressing unemployment in Pakistan requires a multifaceted approach that involves government policies, private sector involvement, and international cooperation. Long-term planning and sustained efforts are essential to unlock the country’s economic potential and provide employment for its growing population.