Unemployment Rate in Pakistan | What is Unemployment

Unemployment Rate in Pakistan What is Unemployment ?

  1. Introduction
  2. Background/ Review of the Literature

3. Research Objective

  1. Method and Design
  2. Significance and Conclusion
  3. References

1. Introduction Unemployment in Pakistan

Pakistan is the country with low literacy, high poverty, over population and unemployment. Pakistan is in the line of developing countries. The main causes of unemployment are limited resources, lack of infrastructure, continuous dictatorship, terrorism, corruption, India Pakistan crisis, annual flood, absence of dams and maximum budget for defence. The World Bank provides data for Pakistan from 1991 to 2014. The average value for Pakistan during that period was 5.8 percent with a minimum of 4.3 percent in 1993 and a maximum of 7.8 percent in 2002 (Pakistan unemployment rate – data, chart, 2016).

There are other minor issues for unemployment like absence of merit and negative interference of defence forces and establishment into governance and politicians. Moreover, the political parties keeps on increasing the leg pulling against one another, this causes great anarchy within the state. No party is able to complete its five years tenure of government because of negative interference of other parties and defense forces.

Our unemployment is the major problem within our country. The unemployment is of different kinds. It can be at higher level, middle level and low level.

At high level there is no unemployment, at middle level there is presence of unemployment. At middle level, people are highly educated. But there are less jobs according to their education and experience. This is the problem of the present scenario.

At middle level, there is the need of better infrastructure, giving loans to youth so that they can start their own business, need of improvement in the industrial sector creating maximum jobs for youth and empowering women. At the low level, the situation is adverse.

The low level population is approximately the half population of Pakistan. At this level, people are uneducated and are called labor. The labor has its own standard of living. There is the need that, we have to make this standard very cheap to facilitate the people.

In this research work, we will focus on the main causes of unemployment. Similarly, I will also discuss the methods dealing with the solution of the problem.

Structural Unemployment

  1. Background/ Review of the Literature

There are different causes of unemployment in Pakistan.

There is lack of advanced technology within Pakistan. Unlike western countries there are primitive technologies for both industrial as well as agricultural sectors.

This causes more use of manpower, electricity and fuel. Pakistan has done some improvement in information technology sector. We have created jobs in this field. There is still the need of improving in e-learning and e-commerce.
Favoritism is one of the major cause of prolonged unemployment.

Selection of employees in Pakistan is not because of its ability and professionalism but is based on social contacts. The quality and talented people are discouraged while average minds are facilitated with high level jobs. These non professional people destroy the whole system of the state. There is always the lack in their grooming and education status.

Afghan Refugees are creating great unemployment. These are coming from Afghanistan because of continuous war in Afghanistan. These refugees have adverse economic condition.

These are burden on Pakistan’s economy. The problem is their employment and settlement on humanism basis. Although the war within Afghanistan has stopped but there is the need to improve the economic conditions. These poor refugees than becomes the terrorists and criminals because of continuous hunger in their homes.

Pakistan is hoping to deport nearly 3 million registered and unregistered Afghan refugees back to their country (Usman and Haq, 2016).This is the good hope towards the prosperity not only for Pakistan but also for this neighborhood country.

There is great problem of political crisis within state. The political crisis are occurring because of unnecessary interference of our army and establishment within politics. They are involved either directly or indirectly. This create tension within the government. Our country has seen prolonged dictatorship since 1947. Because of such heartlessness, the people of Pakistan could not improve them selves.

Our defense budget has increased its cost for the next financial year by 11.6 to Rs781 billion (Syed, 2015). This increased financial budget is the burden on our country. The country with great population and unemployment has such huge budget for defense.

Our political parties keep on doing leg pulling for one another. Irrespective of negative interference of military into politics, certain political parties are creating political instability within the country. Due to this instability no government can complete its at least five years tenure of governance.

They cant make long lasting plans of development as they cant complete those plans. This political instability is creating all anarchy within the state. There is the need of true trust on the government of the people, by the people and for the people. It will be called true democratic government.

There is seasonal unemployment in Pakistan. Sugar factories and ice factories are the examples of seasonal unemployment. Seasonal unemployment means that sugar factories will only open when the harvest of sugarcane will start. Similarly ice factories will only open in summer time. Mango production will only begin during summer, people related to mango production will be unemployed during winter.

People from rural area are continuously moving towards people of urban areas. This huge migration is creating big trouble within the state. As in rural areas there are no industries, there exist only the agricultural sector. So the rural population is fully dependent on the agricultural sector for employment.

Sometimes the rural areas agriculture is unable to fulfill the job requirement. While the urban area has industrial sector, with maximum job opportunity. So people from rural area are moving towards the urban area continuously to have better employment. This movement must be stopped. People must be given the job privileged within the rural area to stop the migration.

Pakistan and India had three wars in history. These are big rivals even today. Pakistan and India has Kashmir dispute between them. There is continuous tension between the two countries for 70 years. This tension is increasing with time. Both counties are atomic power and are speeding huge budget in the defense.

Because of unresolved Kashmir issue, both are increasing their missile technology programme. Both are not spending much money for the development of poor people. So both countries population has adverse health and education conditions. There is the need that the Kashmir dispute must be resolved so that humanity can survive.

Pakistan all rivers are coming from Kashmir, which is forcefully occupied by India. These rivers gives energy to Pakistan. Now India is continuously making dams on our rivers. These dams are increasing day by day. Some times they block our water by closing the dams, creating drain situation in Pakistan.

Millions of people and animals die annually due to absence of water. When there is abundant of water in country in rainy season, Indian dams doors open. This huge water create flood in the country affect badly the citizens of Pakistan. People and animals are misplaced annually. This big flood creates great destruction. Millions of people die during such horrified flood. Such inhuman activity by India must be stopped.

Causes of Unemployment

Corruption is another major issue related to unemployment in Pakistan. This corruption is at every level leading from the labor to higher level of government.

The corruption is creating havoc with the country. Although the corruption is under control at some extent now. But still it is there. There is the need to improve police. As police can play great role in controlling the corruption.

There is the lack of infrastructure within the country. The infrastructure includes the better roads, dams, low petrol prices, communication and better transport. The infrastructure is needed ti improve the industries. We should increase our exports and decease the imports.

Terrorism is another main reason creating huge disturbance within the country. As there is war going on in our northern areas between Pakistan army and Taliban.

Because of this war, we are watching bomb blasts on every week. So because of such terrorism, foreign investors have security issues, so they don’t spend anything within the country. Our country has stopped developing due to terrorism.

  1. Research Objective To improve the agriculture

    About 25% of Pakistan’s agriculture record for about 21% of GDP and employs about 43% of the labor force (Agriculture in Pakistan, 2016). The agricultural sector must be developed at any cost. Pakistan is basically an agricultural country. Whole economy is based on agriculture.

  2. The rural areas must be improved. More roads should be made. Small sized loans must be provided to the farmers to cultivate corps. These loans should be interest free or with minimum interest. Moreover, the farmer should have latest cultivation equipment on instalments.

  3. The farmers must be encouraged. The agriculture sector is able to produce bundle of jobs to poor and illiterate people. Thus, these rural areas can be the best part to increase the employment.

To improve the Dairy Products industry

Dairy products includes the milk, butter, cheese, yogurt and others related items. The dairy products can be a big industry not only for Pakistan but for exports also. The farms should be facilitated to increase more and more milk products. Number of jobs can be created in dairy farms.

These can support our economy. Our people don’t trust their own products which are very cheap as compared to outside products. Our quality is also getting to be improved.

To develop the industrial sector

To develop the industrial sector is the big question. As the industrial sector can produce double jobs as compared to agricultural sector. World has developed so much just because of industry. Our neighboring country China has brilliant industrial sector with marvelous industries.

There is a need to have industrial alliance with China, especially in the field of energy. Other fields may include the education, science and technology etc. Pakistan’s industrial sector reports for about 24% of GDP. Cotton textile industry and clothes fabrication are Pakistan’s largest industries, accounting for about 66% of the merchandise exports and almost 40% of the engaged labor (Industry of Pakistan, 2016).

To encourage people for overseas jobs

Overseas jobs are best to avoid unemployment in country. Jobs in Arab and European countries can be provided to Pakistanis on easy rules. Pakistanis are moving abroad especially to USA, China and Europe for employment.

They are well settled there. There is the need of better awareness to the people about how to move abroad. Moreover, the youth must be educated and experienced to higher world standards. Universities should be improved to meet the high world standards.

To encourage the online jobs

Online jobs like freelancer and true lancer are new approaches towards better employment. These online jobs can remove the unemployment. The freelancer jobs should be taken seriously. Special institution must be made to train the youth about doing jobs online. There is the need of research work at government level.

To create more IT jobs

Information Technology can play great role to improve our condition. This field can create millions of jobs for the nation. Although government has done much in this filed but still there is the need of improvement. Scholarships at both national and international should be provided to improve the students and make them skillful.

To use optimal mineral resources

There is the need to use resources optimally. Mineral resources like oil, gas and coal should be carefully discovered and used. These resources must be made very cheap to best facilitate the people.

To improve the infrastructure

Infrastructure includes the better roads, transport, cheap oil, electricity, water supply, gas supply, cheap manpower and others. These must be improved at their level b best. The infrastructure can be the backbone to our industrial sector. Our industries are wholly dependent on the above mentioned things.

It is the work of government that infrastructure must be improved. Cities should be expanded with time to accommodate the population.

To control the population

Over population should be controlled. Although it has been controlled at some extent. But the population must be according to the jobs available. The situation becomes adverse when thousands of people come for just few seats.

To reduce the retirement age

The retirement age must be reduced. As Pakistan has big retirement age, which is the bad with the youth. As the retirement age will be reduced, more jobs will be available for the youth.

To increase the education standard

The education standard at very high level must be improved at universities. The studies should be practical based not the theoretical based.

  1. Method and Design

Afghan Refugees:

Afghan refugees are one of the biggest problem for Pakistan. There is the need that the Afghan refugees should be moved back as soon as possible for the stability of Pakistan. Afghan refugees were continuously moving towards the Pakistan due to Afghan war.

We should make some plan to adjust the refugees in the country and make them a part of the country. Other idea is to move the refugees back to the country safely. Both ideas are under consideration. Although capital is required to adjust the refugees as the part of people of Pakistan but its not that difficult.

Political crisis

The political crisis are due to prolonged dictatorship and absence of better unity among the political parties. There is the need of continuous democratic government who can complete its five years tenure. By this, the government will be able to make more and more development plans which may be able to complete within the ten years of period.

No other government can stop any government plan. The political crisis are also due to absence of unity among the political parties. The parties should be untied for the democracy and for the prosperity of Pakistan.

Seasonal Unemployment

A system must be made to adjust the employees of one season to work within other season. The seasonal employment becomes a huge problem when the huge labor becomes work less in other season.

These unemployed work less seasonal people must be adjusted in other season. There is the need of pay interest which is useless for the government but is the problem of basics of life for labor.


Corruption has to be removed at all levels. Strict laws must be made to remove corruption. The developed countries has no concept of corruption.

Government has to make plans and steps to remove the corruption at all levels. China has proclaimed fresh rules governing the use of the death punishment in corruption instance (Hewitt, Pandey, and Kondalamahanty, 2016).


Terrorism became the issue after the war against terror till 9/11. The annual death toll from terrorist attacks has risen from 164 in 2003 to 3318 in 2009, with a total of 35,000 Pakistanis killed between September 11, 2001 and May 2011(Terrorism in Pakistan, 2016). Terrorists are roaming within the country and are involved in criminal and terrorists activities. These are creating the situation of law and order.

Although strict measures have been taken for the terrorists but still there is the need of peace in their motherland area. Terrorists involved in terror activities because of their areas have been destroyed by the war. As an action and hunger they get involved in criminal activities.

India Pakistan Crisis

India Pakistan has seen three pathetic wars between them. Irrespective of wars there is continuous tension cross the border. Governments of both countries don’t want to solve the issue because they are getting political advantage. South Asia has been identified as an geographical point of terrorism and religious extremism, the USA has an interest in controlling territorial steadiness, preventing nuclear weapons growth, and minimizing the possibility of a nuclear war between India and Pakistan (Global conflict Tracker, 2016).

Population Control

Population growth is an other main factor in the way of unemployment. Population growth is now under control. Few years earlier it was very critical issue, but now the population is not that big terror.

Still, it’s a need to pay attention on population. As it’s directly related to unemployment, as the population will grow, unemployment will increase. As the population will be under control, the employment will increase.


Growth of Industrial Sector

The industries of Pakistan includes the textile industry, ghee and cooking oil, sugar, fertilizer, cement, chemical, jute, engineering, ship building and woolen industry. Other industries are of small level. Need is to enhance the level and productivity of the industry.

Technical Education and Training

There must be more technical colleges at low level, teaching the basic technical education for the people of country. The technical training is very necessary for the people to make them a good citizen of the society. Several technical training schools have been constructed to give education at low level.

Moreover, the technology universities have been motivated to give technical education related to civil, mechanical, electrical, software and hardware engineers.

Foreign investment

Foreign investors must be attracted by making better infrastructure which must be secure from terror activities. So that foreign investors get interest in our country and make maximum multinational companies. These companies can create maximum jobs for the people.

The multinational companies are providing the jobs on merit. These companies have decreased the burden of unemployment on the shoulders of the government.


There is the need of maximum dams in the country to control the flow of water and make cheap electricity. These dams can produce very cheap eccentricity to promote the industries and to create maximum employments.

No favoritism

The selection procedure must be at merit. There must be no favoritism. Pakistan ha this issue at all levels. Because of political contacts and personal relations, people get job not suitable to their profiles. The highly skilled, educated and experienced people are neglected, while the unskilled people run the governance. This is very critical situation of our country. If we come across the favoritism, we can achieve our goals at great extent.

IT Jobs

Millions of jobs can be created by information technology sector. There is the need to pay attention to IT. IT has played its great role in enhancing the world economies. All the developed nations have seen prosperity due to this field. Although we have improved very well in this sector, but this is the industry who can produce millions of jobs. It is flexible and cheap industry. There is the need of paying attention to it.

Online jobs includes the freelancer jobs at internet. Pakistan government has to take steps to train the people for online jobs. These jobs are mostly the IT related jobs. These jobs can play their role in decreasing the unemployment. People are earning dollars by sitting in their own homes.

Overseas jobs

These jobs includes the jobs in Arab countries, European and US. These jobs are available for the whole world on the internet. People can just search the jobs and can reach their destiny with little capital. These jobs are for highly qualified, skilled and experienced people.

There is the need to develop the countries at the world level. Also there is the need to improve the universities to the world level. Pakistani people are availing this facility and are very happy with the overseas jobs.

Significance and Conclusion

The problem of unemployment is not only in Pakistan but is around the globe. All the developing countries has this very serious problem. The under developed countries of Asia, Africa and Latin America has this serious issue at all levels. These counties are trying their level best to improve the unemployment situation to upgrade the economy. Pakistan is among largest countries in terms of population.

Pakistan has the abundant manpower which is also a good and cheap resource to groom the economy. People of Pakistan are highly skilled, educated, experienced and trained but there is no job for them accordingly. Because of increasing population and unemployment, the people are not getting what they deserve. Due to this unemployment the factors of crimes and terrorism are increasing. Hundreds of people are waiting in their homes for better job according to their demands.

The main reasons for prolonged unemployment is continuously increasing population and low literacy rate. These two main causes must be resolved to increase the employment. We don’t have highly world recognized universities which are competitive and highly skilled. Our education standard don’t meet the world standards. We always learn the theoretical book studies, we don’t go for actual and practical work.

The universities abroad are highly practical. Their emphasis is not on the cramming or reading, their focus is only the implementation. Implementation and practical work and training should be given to the students. Our syllabus are outdated and irrelevant to practical implementation.

As the world is continuously change, our education system must have the ability to adjust themselves with the changing and new world. We need fundamental and structural changes in our education system.

More attention should be given to the secondary level education not at higher level of education. As the school level education is the base of your training and has great impact on your whole life. Pakistan Government should take proper measures to make the school level education cheap and best. We have two types of systems one for poor and one for rich. Poor have the low level of education which effect them throughout the career. While rich have high level of education standard which give positive effect to lives.

For high standard of education there is the need of better economy which only comes with the best industry and energy. Pakistan has great energy crisis, which has to be resolved by making more and more dams and creating the electricity. Cheap electricity will make the industrial sector cheap. Thus the effect is on our education system, which will become brilliant. So, best economy can make the employment level very high.

  1. References

Agriculture in Pakistan (2016) in Wikipedia. Available at: https://en.wikipedia.org/wiki/Agriculture_in_Pakistan (Accessed: 23 July 2016).

Global conflict Tracker (2016) Available at: https://www.cfr.org/global/global-conflict-tracker/p32137#!/conflict/conflict-between-india-and-pakistan (Accessed: 23 July 2016).

Hewitt, D., Pandey, A. and Kondalamahanty, A. (2016) Corruption in china: How much dirty money attracts the death penalty? $463, 000. Available at: https://www.ibtimes.com/corruption-china-how-much-dirty-money-attracts-death-penalty-463000-2355862 (Accessed: 23 July 2016).

Industry of Pakistan (2016) in Wikipedia. Available at: https://en.wikipedia.org/wiki/Industry_of_Pakistan (Accessed: 23 July 2016).

Pakistan unemployment rate – data, chart (2016) Available at: https://www.theglobaleconomy.com/Pakistan/Unemployment_rate/ (Accessed: 23 July 2016).
Syed, B.S. (2015) Defence budget raised by 11.6pc to Rs781 billion. Available at:https://www.dawn.com/news/1186510/defence-budget-raised-by-116pc-to-rs781-billion?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+dawn-news+%28Dawn+News%29 (Accessed: 19 July 2016).

Terrorism in Pakistan (2016) in Wikipedia. Available at: https://en.wikipedia.org/wiki/Terrorism_in_Pakistan (Accessed: 23 July 2016).

TRADING (2016) Pakistan population | 1960-2016 | data | chart | calendar | forecast | news. Available at: https://www.tradingeconomics.com/pakistan/population (Accessed: 23 July 2016).

Usman, M. and Haq, R. (2016) Pakistan firm on sending afghan refugees back – the express Tribune. Available at: https://tribune.com.pk/story/1144592/pakistan-firm-sending-afghan-refugees-back/ (Accessed: 19 July 2016).


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