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Unemployment is a sensitive and most commonly faced
problems of Pakistan. Most of the natives are suffering from this
depression referred to as ‘unemployment’. Many Pakistani graduates are
talented, intelligent, and skilled yet don’t get an opportunity to work.
Currently, more than 3 million Pakistanis are unemployed and the ratio
is more than 12%. There are many students who move abroad for work after
getting degrees. Pakistan is fortunate enough to have valuable human
capital but unfortunately due to lack of opportunities most of them
leave the country.
The biggest reason of unemployment in Pakistan is due to the
backwardness of agriculture sector that accounts for 20.9% to the
country’s GDP and over 44% get employment from this sector either
directly or indirectly.
Causes of Unemployment
There are countless reasons behind the menace of unemployment in
Pakistan. Let’s highlight some of the significant ones here:
Over Population
Uncontrolled and ever increasing population of Pakistan is certainly
challenging. According to the statistics, the population of Pakistan is
increasing by 2.2%. The factors responsible for overpopulation are
illiteracy, early marriages, desires for sons, lack of awareness etc.
More than one million people enter the job market each year. Hence rate
of unemployment is increasing year after year.
Inadequate Education System
The education system in Pakistan has been ineffective since the time of
independence. No practical and effective educational policy is
formulated and followed to improve it. The system is highly imbalanced
as we can see government & private education system. There is a lack of
technical education and many universities do not provide latest and most
trending degree programs. Therefore people are wondering about for jobs
due to lack of experience and skills.
Terrorism & Political Instability
Unemployment in Pakistan aggravated due to the problem of terrorism and
political instability. This has resulted in destruction of institutions,
and affected the peace and economic growth of various regions. This is
the key reason that international investors refrained from investing
their capital in Pakistan. Many factories has closed owing to suicide
explosion, where lots of people work to earn money for their lives,
because of explosion so many people unemployed, on the other hand,
production of different things went down and closing of factories caused
to rise more unemployment.
Due to the dedicated efforts of security forces & agencies, peace of
Pakistan is somehow restored and this has helped in development of CPEC
and created employment opportunities in the region. This can somehow
control the level of unemployment in Pakistan.
Energy Crisis
Pakistan is blessed with plenty of natural resources and is an atomic
power, still faces energy crisis. There are many sources of producing
energy in Pakistan but due to lack of proper planning, efforts, and
corruption, Pakistan is having problem of energy crisis. The government
of Pakistan is unable to provide electricity to residential areas in
Pakistan and similarly, the industrial sector is severely affected.
Therefore factories and industries that require energy are transferring
their business in other Asian countries like Bangladesh, India and Sri
Lanka. As a result, huge labor force has become the victims of
unemployment.
Pakistan Unemployment Rate
Unemployment Rate in Pakistan declined to 5.90 percent in the fourth
quarter of 2015 from 6 percent in the fourth quarter of 2014. It
averaged 5.46 percent from 1985 until 2015, reaching an all time high of
7.80 percent in the second quarter of 2002 and a record low of 3.10
percent in the fourth quarter of 1987. In Pakistan, the unemployment
rate measures the number of people actively looking for a job as a
percentage of the labor force.
This graph provides you Pakistan Unemployment Rate - actual values,
historical data, forecast, chart, statistics, economic calendar and
news.
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