Unemployment has become an alarming issue in Pakistan nowadays. Not just an individual, but society and the economy as a whole, are severely affected by the repercussions of unemployment. When a person is jobless but actively looking for work, such a person is considered to be unemployed. One of the most pervasive issues in Pakistan is unemployment. It is seen as a reflection of a nation’s economy.
Since Pakistan’s founding in 1947, unemployment has been a significant issue because its economy has been shaky since the beginning. 6.65 million individuals in Pakistan are unemployed. Comparing degree holders to the rest of the unemployed, the unemployment rate is three times greater. In fact, it is the despair of every university student and recent graduate.
Every year, a staggering number of people graduate from institutions. On the other side, there are fewer jobs available in their respective industries. The number of unemployed individuals in the country as a whole would increase by more than 2 to 8 million by the end of 2023, predicts Hafiz Pasha, a well-known economist. Gender disparity exists in a similar way. In Pakistan, there are more women without jobs than men.
Several factors contribute to the high unemployment rates in Pakistan. The country’s economy is in a miserable situation right now. It is no secret that dollar rates have skyrocketed and that fuel and petrol costs have reached record highs. Every single item now has such a high price. People in the middle- class struggle to make ends meet. Undoubtedly, the COVID-19 epidemic and the string of lockdowns played a role. The aftermath has resulted in even greater economic losses.
For almost two decades, Pakistan has been experiencing an energy crisis. Exports of petroleum predominate. The cost of producing electricity in the country is considerably high because they consume so little but pay such high costs, people find it extremely difficult to pay hefty electrical bills. The government is unable to create more jobs because of the energy problem. Youth unemployment is also substantially impacted by the expanding population. There are fewer opportunities available as the population increases. Due to this intense competition at work, it is challenging for young people to find gainful employment.
The country as a whole is affected by this unemployment, both in urban and rural areas. This has negative effects on Pakistan’s future, development, and socioeconomic status.
A lack of educational opportunities is one of the main causes of youth unemployment in Pakistan.
In Pakistan, just 43% of people have had a formal education. Many young people are unable to obtain employment that matches their skills and qualifications because they lack access to high-quality education. Teenagers who are unemployed are therefore prevalent in the country. Young people have low levels of economic productivity and skill development due to a lack of excellent educational and vocational training programs. The majority of young people struggle to find fulfilling employment, which leads to prolonged unemployment.
Political instability is a big contributor to young people’s unemployment in Pakistan. The country has seen a number of political upheavals in recent years, which has complicated trade and investment. As a result, there are fewer job openings and a higher proportion of young people are unemployed. The lack of resources is a grave problem in Pakistan.
Many young people lack access to resources like money, technology, and mentors that would enable them to find fulfilling employment. There are also fewer employment opportunities as a result of the government’s underinvestment in the agricultural and industrial sectors. As a result, the private sector has little incentive to create jobs, which increases the unemployment rate for young people. The poverty rate in the nation is thought to be around 32%.
Unemployment in Pakistan carries significant consequences that affect various aspects of society and the overall economy. In the Bureau of Immigration’s latest document, a large number of skilled and educated youth have fled Pakistan to pursue a better life and work in 2023. According to the report, about 75000 Pakistani have traveled in the past years to different countries due to political instability and the growing economic crisis.
The top bureau officer claims that the main causes of this youth brain drain are rising inflation, unemployment, and political unpredictability. Pakistan has lost 7,000 engineers, 25,000 doctors, 1,600 nurses, 2,000 computer professionals, 6,500 accountants, 2,600 agricultural experts, and 9,00 teachers as a result of this brain drain this year.
Unemployment can contribute to social unrest and an increase in criminal activities. Joblessness, particularly among the youth, can breed frustration, disillusionment, and a sense of hopelessness, leading to social unrest and protests. Desperation for income may drive individuals towards illegal activities to make ends meet, resulting in an upsurge in crime rates. Unemployment-induced social instability threatens social cohesion and overall peace within communities. This has affected Pakistani society severely and its impacts can be seen with the immigration of skilled youth to different countries for seeking jobs. Joblessness has caused emotional distress, eroded self-esteem, and diminished the overall well-being of individuals and their families.
It is high time that the government should move forward in tackling this pressing issue and must prioritize the creation of an enabling environment for job growth, encouraging entrepreneurship, and attracting domestic and foreign investments. Educational reforms are necessary to bridge the skills gap and align education with market demands. Investment in vocational training programs, apprenticeships, and skill development initiatives can enhance employability and provide individuals with the tools they need to succeed in the job market. Furthermore, targeted social welfare programs can provide temporary relief and support for the unemployed while they seek employment.
Unemployment stands as a major concern for Pakistan, impacting individuals, society, and the overall economy. It is crucial for policymakers, businesses, and society at large to collaborate in developing comprehensive strategies that create more job opportunities, address the skills mismatch, and foster an environment conducive to entrepreneurship and investment. By prioritizing the reduction of unemployment, Pakistan can unlock its potential, improve living standards, alleviate poverty, and pave the way for inclusive socioeconomic progress.
