Unemployment Situation in Pakistan

Unemployment, Business cycle, Macroeconomics

Adapted :

Unemployment Situation in Pakistan

By Samina Khalil and Rao Noman Saleem
Applied Economics Research Centre

July 05 - 11,1999
Unemployment Situation
in Pakistan
For the record

Unemployment is a central problem because when unemployment is high, resources are wasted and people's incomes are depressed; during such periods, economic distress also spills over to affect people's emotions and family lives.

Now we see that in Pakistan what is the situation of unemployment and what are its economic and social impacts.

In Pakistan labour force include all persons who are of ten years and above, and during the period are without work, currently available for work and seeking for work. On the basis of the existing population of 142.87 millions with Labour force participation rate of 27.46 percent, the total labour force comes to 39.24 million. According to this about 2.4 million persons of labour force were estimated as unemployed in 1999, as construction and transport sectors have absorbed 11.2 percent, 6.8 percent and 5.7 percent, compared to 10.5 percent, 7.2 percent and 5.0 percent respectively in 1994-95.

First of all we see the Sectoral employed Labour force.

According to Labour Force Survey 1996-97, the rate of open unemployment was 6.1 percent and 5.4 percent as per Labour Force Survey of 1994-95. This indicates that rate of unemployment has increased between these two surveys by 0.7 percent officially but unofficially unemployment is much larger than this rate.

Often it is perceived that unemployment rate of rural areas is greater because in rural areas there are less chances of employment as compared to urban areas where there are more chances of employment due to more industries. So now we see the annual unemployed labour force by urban/rural areas since 1993 to 1999, which is given in table below:

It is obvious from the above table that in Pakistan unemployment...
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