Unemployment is a major problem in Pakistan's economy. The unemployment rate is calculated using the labor force, which excludes those under 16, homemakers, full-time students, the elderly, the military, the institutionalized, and the disabled. High population growth, low savings and investment, mismatches between labor demand and supply, declining opportunities in agriculture and manufacturing, and political instability are key causes of unemployment. The government is implementing policies to promote employment such as controlling population growth, establishing industries in backward areas, focusing on small businesses, job training programs, and expanding public works projects.

1. UNEMPLOYMENT
IN PAKISTAN………………………………..
Submitted by:-
Faiza Sarwar (1204196), Saima Sarwar (1204212),
Muhammad Waseem (1204136)

2. UNEMPLOYMENT IN PAKISTAN
Unemployment in Pakistan is not only a topic but also a growing major problem in the
economy of Pakistan.
Let’s starts from the root, now a days, you see for every single job opportunity, there is
vast pool of candidates. Jobs, which pay a lot in developing countries, are paying a
little in comparison if you see in Pakistan. Why is that so? What is influencing so many
people to claim or to go for the single opportunity even through they are from
different regions, cultures, environment, and backgrounds and even from different
fields of education?
The biggest reason is unemployment in our beloved country now, before we further
continue our topic unemployment in Pakistan. We need to know, what is
unemployment? And before we continue to understand what unemployment is, we
need to know labor force? The labor force is the actual number of people available for
work.
Labor force 57.24 million (57,240,000)
Agriculture 45% & Manufacturing 13.7%
Here the only thing requiring concentration is the actual number of people available
for work.
Before determining the actual number of people, we need to know the category or
characteristics of people, some people are ignored or exempt from the labor force.
These people are:
 Under 16 to mandatory age of retirement (which is 60 years in Pakistan).
 Home makers: like housewives, househusbands, of course provide services for the
family which means they work but they are excluded from Labor force.
 Student: here I refer to the student, who studies full time, not the student, who is
doing executive study or part time study like weekend programs. The student, who
does a full time job is included in labor force.
 Elderly: as we all know many people prior to mandatory retirement age work but
they are not in labor force.
 Military: is excluded from labor force the reason is that they are away from
production side.

3.  Institutionalized: Peoples who are in previous mental hospitals are not in the Labor
force.
 Disabled: Special peoples are not in the labor force.
UNEMPLOYMENT:
Unemployment or Joblessness occurs when people are without work and are actively
seeking work that’s why slackers are major problem in determining the
unemployment. Unemployment rate is calculated by dividing unemployed people by
labor force and multiplying by 100.
Let’s continue the topic of unemployment in Pakistan. The population of Pakistan;
 Population 184.27 million (184,270,000)
o Rural 114.4 million (114,400,000)
o Urban 69.87 million (69,870,000)
 Unemployed
o Punjab 2.1 million (2,100,000)
o Sindh 0.7 million (700,000)
o K.P.K 0.53 million (530,000)
o Balouchistan 0.07 million (70,000)
Total unemployment 3,400,000

4. CAUSES OF UNEMPLOYMENT:
The main causes of unemployment of skilled and unskilled persons are as follows:-
(1) High rate of population growth of 2.03% is the major factor of rising unemployment
in the country
(2) Low level of saving and investment provides less opportunities for employment,
(3) Mismatch in demand for and supply of laborer in various sector of the economy is
also an important causes of unemployment in rural areas is less than in urban areas
(4) Declining employment opportunities in agriculture ,due to mechanization, the rate
of unemployment, therefore gas hone up
(5) Absorption of persons in large scale industries, due to the installation of
improvement automatic machinery has gone down. This has also led to increase in
the unemployed labor force.
(6) Rural urban migration. People from rural areas come to the cities for seeking jobs.
Many of them remain unemployed/under-employed due to lack of employment
potential in the urban areas.
(7) Political instability in the country. Political instability in the country has adversely
affected all sectors of the economy the industrial expansion has slowed down. The
prolonged ethnic troubles in Karachi too have created unfavorable environments
for employment. All these factors have led to increasing unemployment rate in the
country.
(8) Prevailing education system. The present educational system is not job or skill
oriented. In the absence of vocational and technical education, a large number of
educated youth remain jobless.

5. BENEFITS:
1. Vast pool of candidates per particular opportunity.
Where ever unemployment rate is higher you have more choices for recruitment.
Example: There are two jobs and in fist situation we have 8 candidates here the
chance of getting effective & efficient human resource are very few may be you get
a good employee may be you get a bad employee.
Now, in the second situation here is a job that nearly two hundred employed
peoples want to attain here you have a large amount to choose, the chance of
getting good employee are higher than first situation. Here you are more satisfied.
2. Declining work hours.
Whenever the unemployment rate is higher the government & companies try to
decline work hours for recruitment of more talent.
EMPLOYMENT PROMOTION POLICIES:
The problem of unemployment is to be tackled on war footings in the Country. The
following measures should be taken to minimize educated and uneducated
unemployment in the country.
(1) Control over the population. Government is making serious efforts to reduce the
rapidly rising population growth. This will greatly help in lessening the pressure
from the supply side on the labor market.
(2) Establishment of industries in backward areas. Establishment of industries in
backward areas by giving tax holidays, subsidy on industrial inputs will help in
creating jobs in the backward areas.
(3) Focus on small scale industries. The small scale industries are to be promoted by
providing liberal credit facilities. This will increase employment potential.
(4) Introduction of self employment schemes. The introduction of self employment
schemes like VIPs (Youth investment promotion society) will greatly reduce the
unemployment of educated persons.
(5) Skill formation. The vocational and technical institutions should be increased on
larger scale to provide on the job training the unemployment of the technical
persons will be greatly minimized.
(6) Construction industry. The construction of houses, roads should be encouraged in
the private sector. This will create more jobs in the country.

6. (7) Purchase of locally manufactured goods. WAPDA, T&T and other government
departments should be encouraged to purchase as far as possible locally
manufactured engineering goods. This step will also generate employment in the
country.
(8) Encouragement of agro industries. The encouragement of agro industries by
providing technical, credit facilities will create additional employment in rural area.
(9) Rationalization of labor policy. In order to ensure labor discipline. The labor policy
shall have to be rationalized. The businessmen and industrialists will be attracted to
establish industries and increase employment opportunities.
(10) Sanctioning of loans to projects. The financial institutions should be directed to
sanction loans for those projects which can create more job opportunities.
(11) Upgrading the quality of labor. For upgrading the quality of labor, human
resource development fund should be created. The sill creation programmes will
help in reducing cost of production, increasing sales and expanding marketability
employment in the country.
(12) Appropriate monetary and fiscal policies. Appropriate fiscal and monetary
policies can go long way in mobilizing resources for economic grouth and creating
opportunities for employment, thus solving the acute problem of unemployment.
The government of Pakistan is taking following measures for providing
employment, reducing poverty.
(1) Expansion of family planning services in rural as well as urban areas.
(2) Introducing and implementing employment promotion policies such as
establishment of “Khushali Bank, SME Bank etc.:
(3) Establishing National Internship Programs
(4) Launching of Rozgar Scheme.
(5) Providing employment opportunities to skilled and non-skilled workers outside the
country.
(6) Starting small public works programs such as Tameer-e-Pakistan and Khushal
Pakistan.
(7) Establishing technology and business centres throughout the country.

7. MEMBERS
OBTAINED
MARKS
TOTAL
MARKS REMARKS
TEACHER’S
SIGNATURE
Faiza Sarwar
Saima Sarwar
Muhammad
Waseem