2013

Muhammad Bilal
Institute of Business and Technology BM- 25615 Summer I 2013

UN-EMPLOYMENT IN PAKISTAN

Table of Contents

Introduction ...3 Summary of the literature review ..5 Theoretical and conceptual framework ..8 Objectives ......8 Scope of research .....9 Research design ..9 Research Schedule, milestones and deliverables .....9

UN-EMPLOYMENT IN PAKISTAN

INTRODUCTION
Unemployment or joblessness occurs when people are without jobs and they have actively hunted work within the past few weeks/days. Unemployment has become a leading world problem after the economic slowdown affected almost the entire world. Now a days, In Asian countries, unemployment is at its highest peak. In the traditional societies, salaried jobs did not exist as money was not in use. Everyone knew how to build shelter and make food but, when these cultures invented currency and moved to the cities, they began to depend on money to buy food from a middle man, instead of growing, gathering the food directly from nature. Dependence on jobs to make money to buy food and shelter was the beginning of unemployment. Now a day, unemployment has taken the focus issue in almost every country. Pakistan is going through its 64th year of independence but, still the people is listening to the lame promises of the selected politicians, as the people of Pakistan are still suffering from a major population of poor and unemployed residents. The problem of unemployment is becoming day by day more severe. Due to massive rise in population individual finances have been disturbed a lot because of unemployment. The major causes of unemployment in Pakistan are: Firstly, joblessness people in Pakistan are increasing rapidly. Law and order situation, owing to the negative social phenomenon, foreign direct investment. New jobs are not generating while the educated peoples (Job seekers) are continuously increasing. Secondly, Pakistan is Agriculture country and depends on maximum job provision in this sector. Moreover, agriculture sector is facing severe challenges like water shortage, climate changes and technological backwardness in recent years. Around 62% of Country population is living in rural areas, and is directly or indirectly linked with agriculture for their living. Thirdly, Industries in Pakistan are shutting down very fast due to electric crises in the country and law & order situation. Effects of unemployment have social not just economic effects. Frequently due to unemployment citizen of the country will search for an alternate way to fulfill his needs like street crimes, Divorce rates often rise up and the rate of homelessness rises, as do the rates for mental and physical illness. It has also heard many times that a head of household has murdered his entire family as a result of overwhelming economic pressure. It is all due to financial disaster that pushed them over the edge. Loss of income and the resulting hardships to the individual and his or her family is the most obvious and direct effect of unemployment. In addition the unemployed person also suffers from lose of self-respect and dignity in the society.

UN-EMPLOYMENT IN PAKISTAN
Education is the key to change and progress, no change no progress. Therefore educational system should be stabilized and changed to prepare the youths according to true values of life and especially to the market demands. All the youths belonging to elites or non-elites should be prepared in government colleges and universities which will lead the system to reform. Moreover, new employment opportunity should be developed in country by industrialization for the youths by contributing stability to the country. The problem of unemployment is becoming more and more serious. The only way to diminish the force of unemployment is to encourage the youth towards the welfare of the country. The education and agricultural system must be reformed up to the level of an underdeveloped country. We must have a clean and corruption free government. More and more industries must be built to provide much opportunity to the youth. Pakistan is a poor country in regard of industrialization. Therefore industrialization must be given top priority. Youths activities and energies should be directed in a useful channel for the nations prosperity. Unemployment is an alarming tone for the survival of the country. Solution to this problem is a must to wriggle the new generation out of the sense of deprivation.

UN-EMPLOYMENT IN PAKISTAN

SUMMARY OF LITERATURE REVIEW

Unemployment is measured annually as the percent of the labor force that cannot find a job. The labor force comprises adults who want to work. Uncounted are those who do not seek employment, or who have become discouraged enough to stop looking for job. In Pakistan labour force include all persons who are of ten years and above, and during the period are without work, currently available for work and seeking for work. On the basis of the existing population of 142.87 millions with Labour force participation rate of 27.46 percent, the total labour force comes to 39.24 million. According to this about 2.4 million persons of labour force were estimated as unemployed in 1999, as construction and transport sectors have absorbed 11.2 percent, 6.8 percent and 5.7 percent, compared to 10.5 percent, 7.2 percent and 5.0 percent respectively in 1994-95. The unemployment rate of Pakistan is 8.3% plus substantial underemployment (2004 est.) Labor Force: On the basis of the estimated population of 148.72 million and the participation rate of 29.61 percent, in accordance with the Labor Force Survey 2001-02, the total labor force is estimated at 45.05 million. Unemployed labor force: 3.72 million Labor force by occupation: agriculture 42%, industry 20%, services 38% (2004 est.) Often it is perceived that unemployment rate of rural areas is larger because in rural areas there are less chances of employment as compared to urban areas where there are more chances of employment due to more industries It is noticeable that in Pakistan unemployment rate is increasing in both rural and urban areas in absolute as well as in percentage terms. Unemployment rate in rural areas is greater as compared to urban areas. Because of industries there are more chances of employment in urban areas. In Rural areas businessmen are setting up industries due to which now rural people seek Manufacturing sector for employment. As in rural areas there is no proper source of earnings that case increase in unemployment. As agriculture sector is not absorbing them due to adaptation of mechanical instruments and bad conditions. Small scale industries are not working efficiently due to worse economic conditions. So Rural people are not finding proper source of earning. It is clear from Percentage distribution of employed persons by major industries division. The government is trying to reduce the unemployment rate. Under Prime Ministers Self Employment Scheme, different Banks and Small Business Finance Corporations are extending loans to unemployed youths and skilled professionals having diploma/degree and business experience. Loans ranging from Rs.10, 000 to be Rs.500, 000 for small business and from Rs.500, 000 to Rs.5, 000,000 for small industries etc. Small Business Finance Corporation is playing role in
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UN-EMPLOYMENT IN PAKISTAN
reducing unemployment. Up to March 1999, the Small Business Finance Corporation has sanctioned Rs.2, 208.4 million, against amounting to Rs.1, 551.95 million have been disbursed to 9,383 persons. The SBFC has generated employment for 28,149 persons under the Prime Ministers SelfEmployment Scheme up to March 31, 1999. A Small and Medium Enterprises Development (SMEDA) has been setup for growth and development of self-employment schemes in Pakistan. During the year 1998 about 104,000 persons have been sent abroad for employment under Govt. overseas employment schemes. The most crucial problem for the Pakistan economy is the terribly low labor productivity. Cross country comparison of labor productivity indicates that among the regional competitors, Pakistani labor is the least productive and over the last two decades the performance is on a downward slide. Different research studies have provided diverse reasons for this low productivity in Pakistan. Macroeconomic stability, foreign direct investment, and financial sector development play an important role in increasing TFP (Total factor productivity). For Pakistan there is also a clear evidence of a relationship between the growth in TFP and the ailing science and technology apparatus.

UN-EMPLOYMENT IN PAKISTAN

The detailed sectorial comparison also depicts that the performance of Pakistani labor is not exemplary in any of the major sectors of the economy The low productivity levels in electricity, gas, water and services sectors in general, is a matter of grave concern. This low labor productivity, coupled with capital constraints results in lower TFP

UN-EMPLOYMENT IN PAKISTAN

THEORETICAL FRAMEWORK
There is a relationship between unemployment and social unrest with the psychology of people. Unemployment is positively related to social unrest in the society. Unemployment negatively impacts on person psyche.

CONCEPTUAL FRAMEWORK

Social unrest occurs due to psychological effects of unemployment on individual. Entering into unemployment, results in reduction of self-esteem, which is considered to be an important trait of stable personality. Unemployment draws negative impact on mental health and cause mostly 5 physiological impacts of the reduction of the on individual such as, He stops connecting with those outside his family, he stops wishing to be a part of collective purpose, being engaged in meaningful activities and having social status. Unemployment results in lower morale and high anxiety.

OBJECTIVE
This research aims to explain the reasons and the claims of the unemployed graduates that are directed only at the incorporation in the public service and private sector, with a focus on the possibilities of starting their own business in Pakistan as an alternative of working in the public sector.

UN-EMPLOYMENT IN PAKISTAN

SCOPE OF RESEARCH
To overcome the limitations of previous studies on factory/offices closure and downsizing, I am using published data on unemployment, men and women, linked with data on the workplace level. I followed the individuals for workplace downsizing, experience with unemployment. The contribution of my study is the use of workplace level information that make a person unemployed.

RESEARCH DESIGN
1) Gathered published data on unemployment in Pakistan up till 2013. 2) Visit of Local and multinational organization to know reason of downsizing in their organization. 3) Collecting Polices that companies adopted for an employee appraisal. 4) Government interventions to overcome the unemployment rate in Pakistan 5) Survey on the health of unemployed individuals at different age and sex 6) Analysis of primary and secondary data collected. 7) How to overcome the unemployment rate in Pakistan.

RESEARCH DELEIVERENCE

Research Deliverance Timeline

Week 1 Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 Task 7
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Week 2

Week 3

Week 4

Week 5

Week 6

Week 7

Week 8

Week 9

UN-EMPLOYMENT IN PAKISTAN

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