UNEMPLOYMENT IN PAKISTAN

PRESENTED BY:
Group Members:
 Abdul Raffay - 31072
 Faisal Ilyas – 31181
 Faiza Nasir – 20373
 Moeed Shahid - 30947
 Mohsin Ahmed Khan - 30932

 Introduction
 Factors of Unemployment
 Unemployment Rate in Pakistan
 Suicide Cases By Unemployment
 Causes of Unemployment
 Conclusion
PRESENTATION AGENDA

Definition:
Unemployment refers to a situation in which the workers who are capable of working and
willing to work do not get employment.
UNEMPLOYMENT

Copyright©2003 Southwestern/Thomson Learning
Unemployment Rate 2005-2015

The factors of unemployment are numerous. But the major factors of unemployment in Pakistan
are as follows:
1. Poor Governance
2. Political Instability
3. Corruption
Major Factors Of Unemployment In Pakistan

1. Poor Governance:
 Good governance is an essential pre-condition for employment as it establishes the enabling
regulatory and legal framework essential for the sound functioning of land, labor, capital and
other factors of market
 Whereas good governance is considered to be non-existent in Pakistan and poor governance is
taken one of the key underlying causes of unemployment in Pakistan.
Factors of Unemployment

2. Political Instability:
 Political stability is fundamental to the creation of an enabling environment for growth and
development.
 Unfortunately the political dilemma has furthermore cornered this issue
Factors of Unemployment

2. Political Instability:
 Economic agents , particularly investors , must be reassured with regard to the continuation
of policies ,should have confidence in the government’s credibility in order to operate
effectively , and in the case of investors ,be induced to take risks .
Factors of Unemployment

3. Corruption:
 Corruption is one of the most dangerous factor that eroded Pakistan’s economic
and governance system since its inception.
 In 2008, Pakistan was ranked as the 46th most corrupt country out of the 180
countries of the world.
 The persistently rampant corruption in Pakistan not only jeopardizes its resolve to
fight against unemployment rather adding to the menace of unemployment from
all direction.
Factors of Unemployment

Unemployment Rate in Pakistan

Suicide Cases By Unemployment
Over the same period, 1,160 cases of attempted suicide were reported. According to the report:
 469 people committed suicide for domestic reasons
 136 because they were unemployed
 193 over disputes within families
 74 over the rejection of marriage proposals
 85 after fights with parents
 97 because of poverty
 159 for other reasons.

“
”
Unemployment is capitalism's way of getting you to
plant a garden.
- Orson Scott Card

The causes are endless and countless. But the major causes of unemployment in Pakistan are as
follows:
1. Economic Causes
2. Social Causes
3. Financial Causes
Major Causes Of Unemployment In Pakistan

Low Industrial Growth Rate:
 Low industrial growth rate is 1.7 % in Pakistan.
 Number of industries is not increasing in Pakistan.
 Lack of industries means less opportunities of employment.
1. Economic Causes

Reduction In Foreign Employment:
 Due to illiteracy, ill training and lack of skill & efficiency demand for our labor in foreign market
is decreasing.
Use Of Advanced Technology:
 A poor country uses backward techniques of production and labor intensive technologies.
 When it uses the advanced technology there spread more unemployment in the country.
1. Economic Causes

High Population Growth Rate:
 The population of Pakistan is increasing at a rate of 2.1 %.
 Due to high rate about two million people enter into the labor market each year.
Law And Order Situation Of Karachi:
 Karachi is the biggest and an ideal place in terms of industrial base of Pakistan.
 Investors are not willing to invest in Karachi due to violence that has taken
over Karachi in the past few years.
2. Social Causes

Lack Of Confidence In Educated Persons:
 A student may have a master’s degree ,but when he walks into an office
for his interview , he lacks confidence.
 In the end so many students of this type are rejected and left
unemployed.
2. Social Causes

Illiteracy & Literacy:
 Illiteracy and literacy both are the causes of unemployment in Pakistan.
 Due to Illiteracy people are not able to work and they remain unemployed.
 On the other hand number of educated is increasing annually but government is unable to
create employment opportunities e.g, students of B. Com. are increasing at very fast speed but
they cannot find jobs and admissions for higher education.
 Rate of illiteracy in Pakistan is 42.3 %.
2. Social Causes

Lack Of Credit Facilities:
 It is so difficult to manage the personal business and self-employment due to absence of
easy credit facilities.
 Accordingly, shortage of credit facilities is also a main cause of unemployment.
Deficiency Of Capital:
 There is shortage of capital that leads to low level of saving and investment in
Pakistan.
 It results in low rate of capital formation and caused in unemployment.
3. Financial Causes

In conclusion, another erupting challenge standing before Pakistan is wide-spread
unemployment.
 Thousands of educated graduates are jobless.
 Hundreds of thousands of unemployed workers are forced to lead their lives
below their status.
 Large scale unemployment has serious effects on the country’s production also.
Moreover, the country’s population has drastically increased during recent years.
CONCLUSION

Therefore, every step taken to improve the living standard of common man proves to be futile
and ineffective. Progress and prosperity is impossible without the reduction in unemployment.
We conclude that there are two major elements, which can reduce the unemployment
 Use of labor intensive industries
 Adoption of self-reliance policy.
CONCLUSION

“
”
The hardest work in the world is being out of work.
- Whitney Young, Jr.