The Pakistan Bureau of Statistics (PBS) has released detailed figures showing that 7.8% (18.7 million) of the total population is unemployed, while 11% of the working-age population (171.7 million) remains without jobs.
According to the details, 6.48 million unemployed individuals fall within the 25-40 age group, 6.19 million between 15-24 years, and 3.37 million in the 41-60 bracket. Among the working population, 66.2 million are employed, including 23.1 million paid employees, 11.1 million in agriculture, and 13 million in non-agriculture sectors. The report also noted 9.78 million unpaid agricultural workers and 5.26 million in non-agricultural roles.
Pakistan’s latest employment statistics are a cause for concern because this means that the economy is failing to provide work for a growing and overwhelmingly young population. In a country where two-thirds of the people are under 30, without meaningful job creation, Pakistan risks squandering its demographic dividend. During the first review of the $7 billion Extended Fund Facility (EFF) by the IMF, it was found that in the midst of economic revival, unemployment has surged to 22.1% as per the 2023 census, compared to 6.3% in 2021. Approximately 93% of private-sector employees have not received wage increments, leading to a significant decline in real wages of almost 20% over the last few years, first due to the COVID-19 crisis and later because of sluggish economic growth.
It is relevant to note here that Pakistan has the highest youth bulge with 64% of the population under the age of 30 years. Over 11.1per cent of the youth are unemployed, according to the Pakistan Economic Survey 2023-24. As the largest part of the nation’s population, the youth bulge has not been used effectively as an asset in Pakistan. Youth unemployment has serious economic and security implications for Pakistan. Youths are the backbone of the state’s economy because of productivity, innovation, skills, and potential for change and growth they hold. If many young people remain unemployed, there will be stagnant economic growth and a lack of development in the country.
Due to widespread unemployment, there is an increased rate of crimes in society. Likewise, economic inequality paves the way to socio-economic stagnation, divides society and intensifies the class system and its associated evils. Finding no jobs inside the country, disillusioned youths move abroad to look for better opportunities. Further, the economically deprived youths get involved in social unrest, protests, and different forms of negative activism. Additionally, unemployment also increases radicalization and polarization in thesociety.
One reason for high unemployment in Pakistan is that most people do not get jobs matching their qualifications. There is no system to provide youths the required skills as per the job market’s demands. There is also a severe lack of career counseling and training at schools and colleges. It is time the government initiated a series of well-devised measures to remove the impediments to job creation for the youth. The first requirement in this connection is to increase the budget for education, especially technical and vocational education. At present only about 2 per cent of the GDP is allocated for education. This should be increased to at least 8 per cent with an enhanced portion of the budget for youth skill development.
According to the HEC reports, 445,000 graduates pass out from universities every year in Pakistan. Amongst them, almost 30,000 are students of computer sciences and related fields. The world now needs more skilled personnel in the fields of technology, Artificial Intelligence, IT, development, tourism, human security, and public policy. This requires equipping young minds with innovative solutions to address the problems of today’s world.
Overall, Pakistan needs to create a job market that synchronizes with the needs of a fast changing world. In addition, the government should encourage entrepreneurship and startup programs to empower youths. For that purpose, loans, mentorship, and incubator programs should be introduced. Apart from that, urgent steps are needed to remove hurdles like internet disruption, social media blackouts or firewalls to facilitate freelancers who face difficulties in accessing requisite tools, apps, sites, and services.
Furthermore, the government must invest in high-growth sectors as per changing global power dynamics such as the digital economy, green jobs, freelancing, and other such fields that do not require nine-to-five job timing. It will equip the youngsters with better employment opportunities and give the state a skilled workforce. The National Vocational and Technical Training Commission (NAVTTC) is a welcome initiative by the government which should try to link its initiated programs with international organizations so that they harmonize with global education standards. In this regard, the Punjab government’s internship program is a welcome initiative which should be promoted at the national level as well.
The root of the unemployment problem lies in economic stagnation. Growth is sluggish, foreign investment is weak, and industrial expansion is hobbled by chronic structural inefficiencies and corruption. No efforts should be spared to rev up the economy in order to provide jobs to the people, especially youths.