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Submitted by:-

Faiza Sarwar (1204196), Saima Sarwar

(1204212), Muhammad Waseem

Unemployment in Pakistan is not only a topic but also a growing
major problem in the economy of Pakistan.
Lets starts from the root, now a days, you see for every single job
opportunity, there is vast pool of candidates. Jobs, which pay a lot in
developing countries, are paying a little in comparison if you see in
Pakistan. Why is that so? What is influencing so many people to claim
or to go for the single opportunity even through they are from
different regions, cultures, environment, and backgrounds and even
from different fields of education?
The biggest reason is unemployment in our beloved country now,
before we further continue our topic unemployment in Pakistan. We
need to know, what is unemployment? And before we continue to
understand what unemployment is, we need to know labor force? The
labor force is the actual number of people available for work.
Labor force 57.24 million (57,240,000)
Agriculture 45% & Manufacturing 13.7%
Here the only thing requiring concentration is the actual number of
people available for work.
Before determining the actual number of people, we need to know the
category or characteristics of people, some people are ignored or
exempt from the labor force.
These people are:
Under 16 to mandatory age of retirement (which is 60 years
in Pakistan).
Home makers: like housewives, househusbands, of course
provide services for the family which means they work but they are
excluded from Labor force.
Student: here I refer to the student, who studies full time, not the
student, who is doing executive study or part time study like
weekend programs. The student, who does a full time job is
included in labor force.

Elderly: as we all know many people prior to mandatory

retirement age work but they are not in labor force.
Military: is excluded from labor force the reason is that they are
away from production side.
Institutionalized: Peoples who are in previous mental hospitals
are not in the Labor force.
Disabled: Special peoples are not in the labor force.

Unemployment or Joblessness occurs when people are without work
and are actively seeking work thats why slackers are major problem
in determining the unemployment. Unemployment rate is calculated
by dividing unemployed people by labor force and multiplying by 100.

Lets continue the topic of unemployment in Pakistan. The population

of Pakistan;
Population 184.27 million (184,270,000)
o Rural 114.4 million (114,400,000)
o Urban 69.87 million (69,870,000)

o Punjab

2.1 million


o Sindh

0.7 million


o K.P.K

0.53 million


o Balouchistan 0.07 million

Total unemployment


The main causes of unemployment of skilled and unskilled persons
are as follows:(1) High rate of population growth of 2.03% is the major factor of
rising unemployment in the country
(2) Low level of saving and investment provides less opportunities
for employment,
(3) Mismatch in demand for and supply of laborer in various sector
of the economy is also an important causes of unemployment in
rural areas is less than in urban areas
(4) Declining employment opportunities in agriculture ,due to
mechanization, the rate of unemployment, therefore gas hone up
(5) Absorption of persons in large scale industries, due to the
installation of improvement automatic machinery has gone down.
This has also led to increase in the unemployed labor force.
(6) Rural urban migration. People from rural areas come to the cities
for seeking jobs. Many of them remain unemployed/underemployed due to lack of employment potential in the urban areas.
(7) Political instability in the country. Political instability in the
country has adversely affected all sectors of the economy the
industrial expansion has slowed down. The prolonged ethnic
troubles in Karachi too have created unfavorable environments for
employment. All these factors have led to increasing
unemployment rate in the country.
(8) Prevailing education system. The present educational system is
not job or skill oriented. In the absence of vocational and technical
education, a large number of educated youth remain jobless.

1. Vast pool of candidates per particular opportunity.

Where ever unemployment rate is higher you have more choices

for recruitment.
Example: There are two jobs and in fist situation we have 8
candidates here the chance of getting effective & efficient human
resource are very few may be you get a good employee may be
you get a bad employee.
Now, in the second situation here is a job that nearly two hundred
employed peoples want to attain here you have a large amount to
choose, the chance of getting good employee are higher than first
situation. Here you are more satisfied.

2. Declining work hours.

Whenever the unemployment rate is higher the government &

companies try to decline work hours for recruitment of more talent.


The problem of unemployment is to be tackled on war footings in the
Country. The following measures should be taken to minimize
educated and uneducated unemployment in the country.
(1) Control over the population. Government is making serious
efforts to reduce the rapidly rising population growth. This will
greatly help in lessening the pressure from the supply side on the
labor market.
(2) Establishment of industries in backward areas. Establishment of
industries in backward areas by giving tax holidays, subsidy on
industrial inputs will help in creating jobs in the backward areas.
(3) Focus on small scale industries. The small scale industries are to
be promoted by providing liberal credit facilities. This will increase
employment potential.
(4) Introduction of self employment schemes. The introduction of
self employment schemes like VIPs (Youth investment promotion

society) will greatly reduce the unemployment of educated

(5) Skill formation. The vocational and technical institutions should
be increased on larger scale to provide on the job training the
unemployment of the technical persons will be greatly minimized.
(6) Construction industry. The construction of houses, roads should
be encouraged in the private sector. This will create more jobs in
the country.
(7) Purchase of locally manufactured goods. WAPDA, T&T and other
government departments should be encouraged to purchase as far
as possible locally manufactured engineering goods. This step will
also generate employment in the country.
(8) Encouragement of agro industries. The encouragement of agro
industries by providing technical, credit facilities will create
additional employment in rural area.
(9) Rationalization of labor policy. In order to ensure labor discipline.
The labor policy shall have to be rationalized. The businessmen
and industrialists will be attracted to establish industries and
increase employment opportunities.
(10) Sanctioning of loans to projects. The financial institutions should
be directed to sanction loans for those projects which can create
more job opportunities.
(11) Upgrading the quality of labor. For upgrading the quality of
labor, human resource development fund should be created. The
sill creation programmes will help in reducing cost of production,
increasing sales and expanding marketability employment in the
(12) Appropriate monetary and fiscal policies. Appropriate fiscal and
monetary policies can go long way in mobilizing resources for
economic grouth and creating opportunities for employment, thus
solving the acute problem of unemployment.
The government of Pakistan is taking following measures for
providing employment, reducing poverty.
(1) Expansion of family planning services in rural as well as urban
(2) Introducing and implementing employment promotion policies
such as establishment of Khushali Bank, SME Bank etc.:
(3) Establishing National Internship Programs
(4) Launching of Rozgar Scheme.
(5) Providing employment opportunities to skilled and non-skilled
workers outside the country.

(6) Starting small public works programs such as Tameer-e-Pakistan

and Khushal Pakistan.
(7) Establishing technology and business centres throughout the