According to the most recent report, more than one million Pakistanis, both skilled professionals and unskilled workers, left the country last year in search of better opportunities abroad. The primary reason highlighted in the report is the acute shortage of adequate employment options within the country. With the economy suffering prolonged recession and near-depression conditions, unemployment continues to rise steadily.
A recent study conducted by Gallup Pakistan shows that youth unemployment in Punjab stands at 7.69%. The findings reveal a clear gender gap, with female unemployment higher than that of males. Moreover, urban centres reflect a sharper problem with unemployment at 8.94%, compared to 7.11% in rural areas. When examined division-wise, the variations become starker, ranging from as low as 6.45% in south Punjab to as high as 17.78% in some parts of Khyber Pakhtunkhwa.
Another survey highlights that the highest unemployment rate, 20.01%, is found among young people with education up to matric or below intermediate level. What is even more disturbing is that over 23% of unemployed women in Punjab possess Master’s degrees, a figure seven times greater than that of unemployed men with the same qualifications. This points to a glaring gender disparity within the country’s employment distribution system.
It has also been observed that the unemployment rate among educated youth is significantly higher than among their less educated peers. This indicates that the education system is not aligned with the requirements of the nation’s industrial, agricultural, and service sectors and remains largely disconnected from the labour market realities.
The Labour Force Survey (LFS) released by the Pakistan Bureau of Statistics in 2021 confirmed a rising trend in unemployment, with educated youth in particular struggling to secure jobs. A key factor behind this is underemployment, where highly educated and skilled individuals are compelled to accept low-paying work due to the unavailability of positions matching their qualifications.
Earlier, a report by PIDE had revealed that a surprisingly large proportion of the working-age population is not part of the labour force at all. Many of these individuals are either previously employed workers who lost their jobs or people relying on other means of income. The report also pointed out that despite repeated policy announcements, the female labour force participation rate (LFPR) continues to remain critically low.
What is especially alarming is the very high rate of unemployment among new entrants into the labour force. More than 31% of degree holders, including those with professional qualifications, are jobless. Among these, 51% are women, while only 16% are men. Unemployment among graduates in rural areas is notably higher than in urban ones, raising concerns over issues such as poor mobility and limited access to opportunities.
Among the many economic challenges Pakistan faces, youth unemployment stands out as one of the gravest. It not only hampers the nation’s economic growth but also drives brain drain, depriving the country of valuable intellectual capital. Unfortunately, employment creation has long been neglected in both short-term and long-term policy frameworks. Public sector jobs are widely perceived as more desirable and better paid, yet their numbers remain very limited.
International experience suggests that the private sector is the most viable engine of sustainable job creation. For this to materialise in Pakistan, it is vital to create a conducive environment that enables private industry to expand and generate employment. This requires the removal of infrastructural bottlenecks and regulatory hurdles such as persistent power shortages, low investment in research and development, and chronic political instability.
Another serious issue lies in the skills mismatch that prevents many young people from finding suitable employment. A considerable number of youths lack access to quality education and practical skills needed to thrive in today’s competitive market. This highlights the urgent need to integrate formal education with internship programmes and hands-on training, thereby preparing graduates for the realities of professional life. For this purpose, government authorities, in partnership with industry representatives, must design and introduce a reformed curriculum aimed at enhancing the employability of future generations.
In recent decades, the services sector has grown rapidly to become the country’s largest source of employment, with wholesale and retail trade dominating in urban centres, while agriculture and livestock continue to provide livelihoods in rural areas. With 64% of the national population under the age of 30, Pakistan is experiencing a pronounced youth bulge. Unless this demographic is channelled productively, the consequences for the state could be dire.
The pressing issue of rampant unemployment among both educated and uneducated young people must be addressed on a priority basis. Otherwise, it risks fuelling social unrest, exacerbating criminal activity, and even contributing to terrorism. Sadly, successive governments have failed to devote the required attention to this highly sensitive and urgent matter.