Unemployment ratio is increasing rapidly and it’s now become the biggest issue that every youth is facing in Pakistan 2024.
As many as 4.6 million individuals are unemployed in the country, with the youth aged 15-25 having the highest unemployment rate of 11.2 percent, according to the Pakistan Economic Survey 2023-24. According to the survey, the total labour force stands at 71.8m-48.5m in rural areas and 23.3m in urban areas. The employed labour force is 67.3m: 45.7m rural and 21.5m urban, while 4.5m are unemployed. Moreover, the unemployment ratio is higher amongst females, with 14.4pc of women unemployed compared to 10pc men.
Unemployment has become the most challenging problem globally. Unemployment can be defined as the person who has the ability to do work and is willing to do but can’t find job opportunity to earn. In Pakistan, unemployment ratio is increasing rapidly and it’s now become the biggest issue that every youth is facing. Many top universities in Pakistan producing a lot of young graduates but they are failing to get a better job.
Currently, more than 300,000 people are unemployed in Pakistan and by ratio is 13%. One of the biggest reasons behind unemployment is the overpopulation. Population is increasing day by day but the resources are limited that’s why unemployment ratio is increasing with it too. There are many reason of overpopulation; lack family planning education, lack of women empowerment, preference to have more sons and many other reasons exist.
In Pakistan, educational system is substandard, parents give their own direction to choose field of study instead of asking their children’s interest which results in the structural mismatch and wrong guidelines there’s also a culture of nepotism and political interference. Many intelligent and high skilled students can’t get job just because they don’t have any reference so they failed. On the other hand, those people who are illiterate because of poverty and poverty is because they are not employed. That’s why they can’t fulfil their basic needs.
Industries play an important role in any county to overcome unemployment rate and economic crises. But due to lack of industries many people can’t find opportunity. World is becoming challenging day by day, candidates are increasing but opportunities are less. Lack of industries, lack of big projects and lack of funds are the critical issue of Pakistan. Pakistan’s current economic crises are high due to lack of investment and trade-offs from the last few years. The global recession has affected Pakistan’s economy and we failed to take steps to get rid of these critical situation.
According to division of population, unemployment rate is high in the rural areas as compared to urban areas because certain industries in rural areas do not give opportunities to their locals mostly in the Sindh (Ghotki) there are many industries and companies who don’t prefer their local citizens. If this will remain constant then rural areas remain unemployed.
Pakistan’s external debt is so high and now they have doubled to previous one. Due to external debts, we are facing economic pressure and low GDP growth. Which results in the rapidly increasing dollar rate because of the insufficient payments of loan? Hence, Government of Pakistan, increasing tax rate and decreasing job opportunities to overcome the economic crises. Due to low inflation, people’s buying power is decreasing because of the increasing in the general price level.
Pakistan’s stock exchange is now facing the downfall due to low rate of investment. Corruption is the destruction of any country’s GDP, whenever government is tries to develop any project they become the victim of the evil hands. They give offer to their own selected persons instead of choosing on merit. Political instability is the resistance in unemployment and the economic growth.
Pakistan is one of the underdeveloped counties, but still Pakistan is using advance technology to speedup work with efficiency. But that is also a reason of unemployment because advance technology requires less labor force. Automatic system has done their job perfectly so why they need employee to do. Technology makes it easier and that is why industry needs only few employees but on the other hand many people are moving other places to find jobs.
The study examines the relationship among the population, foreign direct investment, gross domestic product, inflation, external debt and unemployment. It is hypothesized that these factors exert a strong impact on unemployment in the economy of Pakistan and which results in poverty people not being able to fulfil their basic needs. Though also the educated people are not getting job because of corrupt system based on reference or bribe rather than doing selection on merit or sometime they do lack of skills required to fulfil the requirements of job because of standard of education. But things can be done right it’s still not too late. Pakistan just have to work on little things and first thing is to correct the system Pakistan will definitely will progress and will cope up with all their deficiencies.
According to the survey, a country’s capacity to generate employment depends upon its available resources, technological base and advancement, and institutional strategies. Similarly, human resources, skills, and technical competence determine the type of employment contributing to sustainable economic growth. Skill development is an important area to focus on to train the youth to meet the needs of changing market dynamics.
