Unemployment Situation in Pakistan

Unemployment Situation in Pakistan By Samina Khalil and Rao Noman Saleem Applied Economics Research Centre July 05 - 11,1999

Unemployment is a central problem because when unemployment is high, resources are wasted and people's incomes are depressed; during such periods, economic distress also spills over to affect people's emotions and family lives.

Now we see that in Pakistan what is the situation of unemployment and what are its economic and social impacts.

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.

Suggestions

1) Govt. should make efforts to push economic growth process.

For this purpose Economic Revival Package should announce for the revival of industries sector, to stimulate production and investment.

2) Govt. should seriously try to boost exports through broadening the tax base and lowering tariffs.

3) Govt. should announce a package for the development of agriculture sector .

4) Beside this a number of fiscal and monetary measures should take to attract industrialists and particularly foreign investment.

5) More Technical and Vocational training facilities should be provided. In this way unemployed people will get the chance to enhance their skills and become able to earn reasonable income.

6) With a view to reduce educate unemployment, self-employment scheme should be encouraged in true manners.

(Figures in Millions)

Sector	1994-95	1997-98(E)	1998-99(E)
Agriculture	15.56	16.90	17.37
Mining & Manuf.	03.49	03.79	3.90
Construction	02.40	02.60	2.67
Trade	04.82	05.24	5.39
Transport	01.69	01.83	1.89
Comm.Soc.Ser.	04.75	05.16	5.30
Others	00.55	00.60	0.62
Total	33.26	36.12	37.14

Source: Economic Survey 1997-98.

(Figures in Millions)

Unemployment Labour Force Unemployment Rate(%)

Year Population Total Urban Rural Total Urban Rural

1993	116.74	1.53	0.54	0.99	4.73	5.88	4.28
1994	119.39	1.61	0.62	0.99	4.84	6.51	4.22
1995	122.36	1.80	0.68	1.12	5.37	6.90	4.80
1996	125.38	1.85	0.71	1.14	5.37	6.90	4.80
1997	128.42	2.25	0.83	1.42	6.10	7.10	5.70
1998	131.51	2.31	0.86	1.45	6.10	7.10	5.70
1999	134.51	2.36	0.89	1.47	6.10	7.10	5.70

Source: Labour Force Survey 1992-93 to 1996-97.