“Unemployment is a situation where people of a country are willing to work, able to work but cannot find jobs.” Officially unemployment is defined as the situation of being without work, wanting work, and actively seeking work. It is usually measured as a percentage of the people in the total labor force or the total for some social group. During periods of recession, an economy usually experiences a relatively high unemployment rate. Economy of an individual is at the utmost priority of every democratic as well as welfare state. Since the dawn of human history, individual needs have been prioritized by every human being. These individual needs can be met by proper sources of employment. After the transformation of the world from a feudal to an industrial society, the needs of an individual have risen sharply, giving due importance to finance. In Pakistan, due to gigantic rise in population, individual finances have been disturbed a lot. This is because of rising unemployment. According to Samuelson:
“Unemployment occurs if there are qualified workers who would be willing to work at prevailing wages but cannot find jobs.” Unemployment Situation in Pakistan:
According to Economic Survey of 2010-11, population of Pakistan is 177.1 million. Total labor force is about 54.92 million out of which 51.87 million is employed and remaining 3.05 million is unemployed. Rate of male unemployment is 5.6 % and female unemployment is Causes of Unemployment
Every year many new graduates are added into the labor force but few of them get very good jobs; some others get a reasonable one but many keep on looking for jobs for a long time. There can be a number of reasons for young men to be unemployed. A lack of realistic approach is one of the reasons of being unemployed. Youth have their dreams and some are ambitious too. Their ambitious nature leads them to dream about very unrealistic goals in life. Degree holder youth usually aspire for a white collar job in a big company such as in a multinational. Their objective is to get a high salary. But when they don’t get such a job they keep on waiting for one and hence not only waste their time but also the opportunities to get some other low salary jobs. 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 %. As in the backward areas of country, the education facilities are not available. Only 2.7% of total GDP of the country is spent on Education. Even though there are more than 8000 ghost schools in Sindh province, which are not working but are under the control of local landlords. Government schools are unable to provide quality education due to imperfect syllabus, improper education policies, and inefficient teachers. That’s why the students are unable to build their strong base through education. Seasonal Variation
There is seasonal unemployment in Pakistan. Seasonal unemployment exists especially in industrial sectors. For example, sugar industries and ice factories create seasonal unemployment. People only work for certain part of the year and mostly remain unemployed for remaining part of the year. Unskilled labor
Most of the businessmen in Pakistan are illiterate, ill-trained and unskilled. They think that if they employ more persons they will have to pay more and their profit will decline. These unskilled businessmen cause nepotism and favoritism. It means selection according to relation not according to ability. Here deserving candidates do not get jobs and remain unemployed or under employed. High Population Growth Rate
The population of Pakistan is increasing at a rate of...