SUBMITTED TO:
A PROPOSAL ON
UNEMPLOYMENT
TABLE OF CONTENTS
1. ABSTRACT
2. INTRODUCTION
3. THE STUDY
4. LITERATUREREVIEW
5. METHODOLOGY
8. ETHICAL CONSIDERATIONS
9. REFERENCES
1.Abstract
The purpose of the study is to examine the factor that affects the unemployment because
unemployment is a biggest problem faced by the Pakistan. The population of this research is the
unemployed people those have no opportunities of jobs in Pakistan. There is a survey on
unemployment and the factor that affect the unemployment, due to these factors the
unemployment ratio is increases day by day. The sample will be used in the study would be 500
unemployed people. It is important to see the factor that affect the unemployment, is poverty, low
level of education and crime. Due to these factors people are unemployed in Pakistan.
Unemployment increases the poverty and crime. Data will be collected through questionnaire
from unemployed people in Pakistan. After that data will be analyzed through SPSS because this
study based on quantitative approach. The result of this study Unemployment is based of crime as
well as low level of education.
2.Introduction
Unemployment is a central problem because when unemployment is high, resources are wasted
and people’s incomes are depressed. Unemployment is the situation where the country is not
making full use of its resources. During such periods, economic distress also spills over to affect
people’s emotions and family lives. 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. Unemployment is a growing problem of every nation. Pakistan has reached a critical
stage and joblessness is increasing daily. Moreover, downsizing in many government offices and
within the private sector have exacerbated the problem.. 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.Economies are powered by consumer spending and savings investment. Unemployed
workers earn no wages; they spend little and save less. Economies with high levels of
unemployment are stalled economies. Unemployment observed in Pakistan is mainly Structural,
Seasonal and Cyclical. There are other factors too but these three particular factors largely impact
unemployment rate. Structural unemployment is caused by a mismatch between jobs offered by
employers and potential workers. The four factors that effect the unemployment is crime,
poverty, low level of education and inflation. Due to unemployment these factors affects social
and political economy of Pakistan. Crime is a major source of insecurity and discomfort in every
society. When the people do not get job and money to fulfill their needs, than they adopt
alternative way to fulfill their needs, which is robbery.
Unemployment increases the rate of crime in society. Unemployment increase poverty and
poverty is major problem in under developed country like Pakistan. Unemployment increases the
rate of poverty because they do not have sufficient resources to eradicate their poverty. Writing in
the mid-1970s – ironically in hindsight, at the very time when the prospects for full employment
were about to disappear (Gregory and Sheehan, 1998) – the Poverty Commission identified
unemployment as a major cause of primary (or income) poverty. About one in six (16.6 percent)
of the unemployed were below the poverty line in 1972-73. From the vantage point of the present
day, this might seem a somewhat low figure – even though it was well above the prevailing
national poverty rate of 10.2 per cent. However, it is important to bear in mind that many of those
who were unemployed in the early 1970s remained out of work for relatively short periods and
were thus able to supplement their incomes fairly quickly once they returned to work. Poverty
resulting from unemployment was thus temporary for most of those who experienced it and the
numbers affected were in any case relatively small. Unemployment is based of crime as well as
low level of education.
2.1Definitions:
This proposal shows the factors that effect unemployment. Here unemployment use as dependent
variable and poverty, low level of education and crime are used as independent variables. The
definitions of these variables are as under:
Unemployment:
Unemployment (the state of being unemployed or not having a job) "unemployment is a serious
social evil"; "the rate of unemployment is an indicator of the health of an economy"
Unemployment is of structural seasonal and frictional nature. As in modern world man by
himself hardly produce anything. Due to growth of technology and specialization much more
capital is required to engage in productive activities and if working forces grows faster than the
stock of capital the entire labor force can not be absorbed resulting structural unemployment.
Seasonal unemployment arises because of seasonal character of particular productive activity. So
that people become unemployed during stock season ‘s e.g agricultural activities and seasonal
industries much as ice factories , sugar industries etc. frictional unemployment exists when men
are tempo rarely out of work because of lack of mobility on part of labour.
Poverty:
“Some people describe poverty as a lack of essential items – such as food, clothing, water, and
shelter – needed for proper living. (Copenhagen Declaration) described poverty as “…a
condition characterized by severe deprivation of basic human needs, including food, safe
drinking water, sanitation facilities, health, shelter, education and information.” When people are
unable to eat, go to school, or have any access to health care, then they can be considered to be in
poverty, regardless of their income. To measure poverty in any statistical way”
3.1Purpose statement
The purpose of the study will be to test those factors which affect the unemployment rate in
Pakistan. There exogogenous variable is unemployment “unemployment the state of being
unemployed or not having a job” and endogenous variable is poverty ,”poverty means basic
human needs, including food, safe drinking water, sanitation facilities, health, shelter, education
and information.”2nd endogenous variable is low level of education,” education means short skills
and information”3rd endogenous variable is crime,”crime means corporation in an economy”.
.
DR ALI AKBAR DHAKAN, Karachi, via e-mail, June 1.Poverty is not the fate of any man,
woman or nation. It prevails on account of the policies and systems of governance and the
intentions and actions of the government of a state. It is usually a product of fragile and instable
system of government. Repeated changes and reshuffles in the ruling set up of the country mostly
affect its fortunes. What is poverty? Simply stated, it is lack of food, safe water, reliable
healthcare, adequate shelter and basic education. In the words of Nadine Gordimer, winner of
Nobel Prize for literature in 1991 "'Poverty has aspects other than lack of bread or rice or maize
meal, basics that keep the body alive". In Sindh, those aspects mostly mean unemployment.
By Qurratulain Akhtar September 2, 2006 Poverty has many dimensions in Pakistan. People
have not only low incomes but they also are suffering from lack of access over basic
needs.Beause people are unemployed In Pakistan, Poverty Reduction Strategy was launched by
the government in 2001 in response to the rising trend in poverty during 1990s. It consisted of the
following five elements.(a) Accelerating economic growth and maintaining macroeconomic
stability.(b) Investing in human capital.(c) Augmenting targeted interventions.(d) Expanding
social safety nets.(e) Improving governance. reduction in transitory and chronic poverty on a
sustained basis. The reduction in poverty and improvement in social indicators and living
conditions of the society are being monitored frequently through large- scale household surveys
in order to gauge their progress in meeting the targets set by Pakistan for achieving the seven UN
Millennium Development Goals by 2015
By Syed M Aslam July 05-11-1999 The theme of The First United Nations Decade for the
Eradication of Poverty (1997-2006) was "Eradicating poverty is an ethical, social, political and
economic imperative of humankind." UN Secretary General Kofi Annan delivering his message
on the International Day for the Eradication of Poverty observed on October 17, 1997 that "some
individuals today are enjoying wealth on a scale previously unimagined. Yet victims of poverty
still endure intolerable forms of deprivation. They continue to be marginalized and excluded."He
also said that though overall, the relative incidence of poverty declined, yet the number of
world’s poor has risen considerably as almost one quarter of world’s population still lives in a
state of poverty. For instance, he added, the number of people with incomes less than $ 1 a day
increased by almost 100 million between 1987 and 1993 and 1.3 million people, one-third of
world population, live with an earning of less than $ 1 a day. One of the primary aims of any
government should be the elimination of unemployment. Although achieving zero level
unemployment is not only ‘highly impossible’ but also undesirable at various levels to check the
inflationary trend. It is imperative that all governmental policies need to be directed towards
achieving this goal. Identifying the problem is the first step towards successfully solving it.
However, a look at officially compiled statistics shows that unemployment level in Pakistan is
much higher than that portrayed by the government. For instance, based on a population of 134.5
million today and a participation rate of 28.7 per cent, the total labour force in Pakistan comes to
38.6 million of which 36.2 million were employed. This also shows that only 2.4 million persons
were unemployed in the country which reflected an affordable unemployment rate of 6.1 per
cent. In fact, unemployment is a much more serious problem than the official statistics show.
By Falak Sher Khan • Apr 28th, 2009 Police experts say that the combination of poverty and
unemployment has allowed gangs and organizations to target young people and steer them
towards a path of criminal activity.
Maarten H. J. Wolbers1 It is a known fact that less well-educated people have higher
unemployment rates than better educated people. A possible explanation of this finding is job
competition: employers prefer higher over lower educated workers for jobs that were previously
occupied by lower-educated employees. As a consequence, the lowest educated become
unemployed. This effect of education differs by current aggregate unemployment rate and sex.
Secondly, we conclude that unemployed individuals with qualifications have higher probabilities
of regaining employment than the unemployed without qualifications. This effect varies by
current aggregate unemployment rate, sex, and unemployment duration.
By Syed M Aslam July 05-11-1999 Unemployment in Pakistan today is prevalent at all levels. It
does not spare the highly qualified professionals any more be they doctors, engineers and MBAs.
It hurts the illiterates, non-skilled, skilled, and educated and professionals alike. However, it hurts
the first two disadvantaged classes more than the others. While the weekend editions of major
national dailies appear to be full of ‘help-wanted’ advertisements they only tend to give a wrong
picture of the unemployment situation. Firstly, the majority of jobs advertised are aimed at the
highly qualified professionals whose share in the total employment is just 3.6 per cent. There are
little or no vacancies advertised for the two biggest occupational groups— skilled agricultural
and fishery workers whose share is 36.8 per cent and the elementary or unskilled workers whose
share is 22.9 per cent. In a country like Pakistan, where less than 1.4 per cent of the children,
enrolled in primary school, manage to reach universities and professional colleges, the increased
demand for professionals in the job market could hardly make any difference for the majority
which drops out at all levels of the academic progress. The over emphasis on the maximization of
the GDP has also led to uneven distribution of income in Pakistan. The data on income
distribution, based on Household Income and Expenditure Surveys conducted by the Federal
Bureau of Statistics during 1963 to 1994, shows at least four distinct phases of inequality at the
ratios of the highest 20 per cent and the lowest 20 per cent income groups. The first phase
between 1963-71 shows that inequality in income distribution narrowed the ratio of highest to
lowest 20 per cent income group decreased from 7.1 per cent in 1963-64 to 4.9 per cent in 1970-
71. The second phase, from 1971-79 widened the income inequality from 5.4 per cent to 6.1 per
cent. Once again, the ratio declined in the third phase, 1984-87 from 6.2 per cent to 5.5 per cent.
In the fourth phase, 1987-93, the inequality in income distribution worsened as the ratio sharply
rose by 2.3 per cent to 7.8 per cent. The sharp decline in the household income shares of the
lowest and the middle income groups can be attributed to unemployment and under-employment.
By Falak Sher Khan • Apr 28th, 2009 There are currently 231,289 educational institutions in
the country. Their overall enrolment is recorded 34.84 million with teaching staff of 1.37 million.
Pakistan’s current population is 160.9 million with a growth rate of 1.80 per cent. Out of total of
160.9 million populations, enrolment of students is just 34.84 million.
By Sana in Economics, August 10, 2008 It all boils to the primary or basic education in
Pakistan about which little attention has been paid and which continues to deteriorate. Budgetary
allocations are very small for such an important sector with the result that we are unable to
produce quality graduates at a tertiary level. The curriculum is outdated and the teachers too are
pathetic. Unless we don’t have a plan to improve basic education we can’t expect quality
graduates being churned out at the tertiary level. Literacy Rate (2003 est.)Total population:
45.7% male: 59.8% female: 30.6%
SYED YASIR MAHMOOD GILLANI Many studies have been conducted on the the effect of
crime on unemployment its. The results of these studies show that these various factors are
responsible for promoting crime in the world. Fleisher (1966) studied the role of income on the
decision to commit criminal acts by individuals. The author stated that the principal theoretical
reason for believing that low income increases and unemployment the tendency to commit crime
is that the probable cost of getting caught is relatively low. It is because of the reason that low
income and unemployment individuals view their legitimate lifetime earning prospects dismally
they may expect to lose relatively little earning potential by acquiring criminal records. They feel
1that not only legitimate earnings are’ low’ but also the opportunity cost of time actually spent in
delinquent activity, or in jail, is low.
HAFEEZ UR REHMAN and ABID RASHEED GILL* Ehrlich (1973) considers that
unemployment has its effects on crime rate. He says that unemployment rate can be viewed as a
complementary indicator of income opportunities available in the legal labour market. Therefore,
when unemployment rate increases, the opportunities in the legal sector decrease leading
individuals to involve in criminal activities.
According to the Australian Bureau of Statistics (ABS), 10.9% of the total 15-24 age
population was unemployed in September, 1995. This figure climbed to 15.3% in September,
2003. This evidence gives cause to the growing concern surrounding the increase in youth
unemployment. For sizeable numbers of youth, it’s not going to get any easier to find work as
they move into their twenties or complete education. Opinions such as those found in the Smith
Family Youth Unemployment Report (2003) hypothesis that juvenile crime is directly connected
to the high rates of youth unemployment in Australia. In this essay, I would firstly like to ask
exactly what is known about both the rates of juvenile crime and youth unemployment in
Australia, and is there a direct link between the two? The suggested connection between a soaring
crime rate and youth unemployment influences the way in which our society is governed and
developed, making it imperative that we endeavor to try and understand and/or eliminate some of
these suggestions. I will begin my essay by defining what I mean by youth unemployment and
juvenile crime, and explore the possible challenges upon measuring both of these things.
Comparing statistics gathered from both the ABS and other government recognized reports on
unemployment, and information from the Australian Institute of Criminology (AIC), I will
attempt to weigh up the claim that the crime rate has risen in unison with the unemployment rate.
I will also assess claims made by Weatherburn (2001) that youth unemployment causes crime,
sifting through the truths and fallacies. Opinions such as those found in the Smith Family Youth
Unemployment Report (2003) which hypothesize that juvenile crime is directly connected to the
high rates of youth unemployment.
Policy research Policies designed to increase jobs in inner city areas can have a direct, positive
effect on crime rates. A new study of crime across the United States shows that crime rates rise
and fall with unemployment. But this truth is obscured by other factors. A Discussion Paper
published for the Centre for Economic Policy Research by two economists, Steven Raphael of
the University of California at San Diego and Rudolf Winter-Ebmer of the University of Linz,
finds support for the view held by most people that when men are out of a job they are more
likely to steal because the risks seem more worthwhile. The writers find a significant positive, but
also quantitatively large, impact of unemployment on several crime categories.
4.1Theoretical framework:
The present study will utilize the theoretical concept of demand and supply. By Syed M. Aslam
July 05-11-1999 in a perfect economic scenario it would be lovely if the supply of labor matches
the demand for jobs. Unfortunately, this could only be an utopian situation. Pakistan’s current
employment situation is a nightmare and is feared likely to grow into a problem of more immense
proportions unless concrete measures are taken immediately. With the increasing number of
educated people entering the work force every year and the ongoing retrenchment which will
continue in future the supply is feared to surpass the demand. The UNDP report does not
exonerate the government from its responsibilities noting that at times of high unemployment
when supply supersedes demand in the job market the fault lies with the government. Such a
situation means that the government’s macro-economic policies fail to ensure the efficient use of
resources, particularly of labour.
4.2PROPSED MODEL FOR STUDY:
Poverty
Crime
5. METHODOLOGY
Research Design
In line with the requirement of research descriptive statistics will be used in order to provide
understanding of factor that creating unemployment in Pakistan. For this purpose a cross
sectional survey will be accomplished. Research design will be descriptive type of study. The
survey method will be use in this descriptive research. Additionally, telephonic media would also
be use as it will enable the researcher to directly contact with the people.
Population
The people those are unemployed will be population from different cross-sectional areas district
and country will be considered as population of this study.
Sampling techniques
I will use 500 unemployed people as a sample.
• Due to limited availability of resources and lack of time , my study is limited to the
boundaries’ of Pakistan only.
7.Reliability and validity:
In the order to check the validity of instruments. I will used face validity because the topic of my
research is related to the general public and their behavior to wards the unemployment, and the
behavior of unemployed people in Pakistan.
8.EHICIAL CONSIDERATIONS
• All aspects of topic will be cleared to the respondent. He will answer in open word.
9.REFERENCES
From Wikipedia the free encyclopedia Pakistan government spends over 1 trillion
Rupees (about $16.7 million)
DR ALI AKBAR DHAKAN, Karachi, via e-mail, June 1.(Poverty is not the fate of
any man, woman or nation.)
By Qurratulain Akhtar September 2, 2006 (Poverty has many dimensions in Pakistan.)
By Syed M Aslam July 05-11-1999 (the theme of The First United Nations Decade for the
Eradication of Poverty (1997-2006)
By Falak Sher Khan • Apr 28th, 2009 (Police experts say that the combination of
poverty)
SHAHNAWAZ MALIK (It is generally believed that the best investment of all is the one
made in people)
Maarten H. J. Wolbers1 (It is a known fact that less well-educated people have higher
unemployment rates than better educated people.)
By Falak Sher Khan • Apr 28th, 2009 (There are currently 231,289 educational
institutions in the country).
By Sana in Economics, August 10, 2008(It all boils to the primary or basic education in
Pakistan)
SYED YASIR MAHMOOD GILLANI (Many studies have been conducted on the the
effect of crime on unemployment its.)