Unemployment in Pakistan; Causes, Consequences and Solutions

Unemployment is the condition in which an individual who is capable of work is unable to find a job. Unemployment rate is measured by dividing unemployed individuals by the individuals in the workforce. IMF defines unemployed as a person who is unable to find a job and is able to join the workforce. According to International Labour Organization, unemployment is the condition in which you can’t find a job but actively seek a job for the last 4 weeks. According to Labour Force Survey, 2020-21 unemployment rate in Pakistan is 6.3%. This condition may not seem very alarming but most unemployed individuals are between 15-29 age. Unemployment is a big problem all over the world specifically in developing countries. It is one of the important indicators.

Causes of Unemployment in Pakistan

There are many elements that work as causative agents of unemployment. The first one is population growth. The country is dealing with severe population growth. A survey reports that population growth for each year is 2% which is very alarming. A country with a handful of resources is not able to meet the requirements of a growing population. Various elements contribute to population growth like early marriages, lack of awareness, and desire of having more sons.
Lack of education is a huge cause for the country. Illiteracy is at the back of all social evils. An individual with no education will less likely to find a job which will cause unemployment. It is estimated by UNICEF that currently, 22.8 million children are out of school which will be added to the already existing force of unemployed.
Our country is in a system of unbalanced taxes. No, proper tax system is yet implemented and sometimes some sectors fall prey to huge government taxes while others enjoy a tax-free environment. The condition ended up in the firing of the workforce.
The energy crisis in the country has imparted huge damage to industries and businesses. The power made from furnace oil is very expensive. The industries may not buy expensive power because it will result in expensive manufacture and price hikes.
Terrorism and extremism in the country are translated into the closure of various businesses. There is a lack of confidence of people on the system. People fear that they may not get the expected results from investments.
Retirement age is also very high in the country. People suggest that the reconsideration of the retirement age may help to decrease unemployment but it may not be very effective because the government can’t give jobs to everyone in the government sector. A business suitable environment needs to be provided.
The increase in the dollar rate affects the imports of the country. Anything which you sell in the international market for $1 will cost you Rs 220 in the domestic market.

Consequences of Unemployment in Pakistan

The consequences of unemployment are very drastic and may exacerbate if not handled timely. It creates health issues hypertension, anxiety, and psychological issues. It causes severe social dilemmas; people do everything and get involved in immoral practices like robbery, theft etc. Marital issues are caused i.e. if one cannot fulfil family needs.

Solutions of Unemployment in Pakistan

Comprehensive plans need to be launched, and skills-based education should be made mandatory. Today a good deal of options are available online so government should work on digital literacy. Experience-based internships need to be launched to make new graduates more experienced. The energy crisis needs to be curbed, the law and order situation should be maintained, and government should support entrepreneurs and new ideas.

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