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Unemployment in Pakistan

Unemployment is a central problem because when unemployment is high, resources are wasted and people’s incomes are depressed.

Unemployment is the situation where the country is not making full use of its resources.

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.

Unemployment is measured annually as the percent of the labor force that cannot find a job. The labor force comprises adults who want to work. Uncounted are those who do not seek employment, or who have become discouraged enough to stop looking.

Classification of Unemployment

Unemployment is classified into three categories.

  • Frictional unemployment (workers who are simply moving between jobs)
  • Structural unemployment (workers who are in regions or industries that are in persistent slump)
  • Cyclical unemployment (workers who laid off when the overall economy suffers a downturn. In Pakistan unemployment is of structural and cyclical nature.

Understanding the sources of unemployment has proved one of the major challenges of modern macroeconomics. Voluntary unemployment may be or when qualified people chose not to work out the going wage rate unemployment occur. The key element in understanding involuntary unemployment is the inflexibility of wages in the face of economic shocks. The same situation is in Pakistan, inflexibility arises because of costs involved in administering the compensation system.

The upward creep in the natural rate arises mainly because of demographic trends particularly the higher proportion of teenagers in the labour force. In addition, government policies are also increasing unemployment rate i.e. Golden Shake Hand, ban on jobs increasing unemployment rate.

Unemployment in Pakistan

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.

Economies are powered by consumer spending and savings investment. Unemployed workers earn no wages; they spend little and save less. Economies with high levels of unemployment are stalled economies


The estimated population of Pakistan for the year 2005 is said to be 162,419,946 million
At the time of independence, it was only 32.5 million, but 116 million people were added during the last 57 years

The population growth rate is 2.03% (2005 est.)

Population below poverty line: 32% (FY00/01 est.)

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User Comments
  1. Sohaib

    On September 7, 2008 at 3:53 am

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  2. Faisal

    On September 22, 2008 at 1:36 am

    Suberb mam ,superb . . .

  3. Yamna

    On November 13, 2008 at 10:31 am

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  4. Afshi

    On December 4, 2008 at 3:29 pm

    hi one of the best article

  5. zahara

    On December 4, 2008 at 3:35 pm

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  6. Samia

    On January 17, 2009 at 12:53 pm

    Excellent artical, really fruitful!!


    On March 12, 2009 at 4:42 pm

    Five regional cities should be upgraded with in the provinces in Pakistan. Regional cities of Dera Ismail Khan in NWFP, Gawadar/ Qalat in Balouchistan, Sukkar/ Larkana in Upper Sind, Jehlam/ Rawalpindi and Multan in Punjab province. These regional cities have been ignored by the federal and provincial governments although these cities have their own history, culture and languages.Dera Ismail Khan in south of Pakhtun khwa is under seige, Multan/DG Khan in south of Punjab is next target of religious extremists,Sukkar/ Larkan is rule by criminals, Gawadar/ Qalat is trouble some. The people of these regions have to travel to provincial capitals for every small issue and requirement of the daily life which should be provided in nearby cities. A good number of population travel to big cities for their survival to earn livelihood as the local feudal own majority land and keep the common man as their slaves. Creation of regional government and upgrading of the regional cities will save a lot of money and time of the poor people of these regions. Circuit courts of the High Courts are already working in these areas and only requirement is the additional staff of different departments involved in additional work at the provincial capitals. The concern authorities should immediately consider to upgrade the regional cities. And immediate attention should be given upgrade the airports,TV station, civic center, libraries,hospitals, educational institutes and investment opportunities for Pakistanis living abroad and foreign firms to create jobs in the area as majority population in rural Pakistan do not have enough resources to survive. It’s remind me the condition of pre Islamic revolution of Iran in Shah time when the rural Iran was ignored and the capital Tehran was developed in a way to call it Paris of Middle East with modern life style. Couple of other big cities like Isfahan and Caspian sea was taken care of because of foreign tourists but rural area was ruled by cruel police and intelligence. Then what happen, rural population supported the Islanic revolution and later on moved to Tehran and other big cities. Any how The new government developed, built and upgraded the riral areas of the country.KHWAJA AFTAB ALI,( former secretary, Iranian embassy, Saudi Arabia) Advocate High Court & I.P. Attorney- first and only Pakistani lawyer earned scholarship to study Intellectual Property Rights in USA,presently residing in Florida, USA

  8. shakir khan

    On March 17, 2009 at 7:41 am

    dear sir i really like it beacuse it relating to my study and surelly very helpfull for me specially in study aspect your this artical solve my assignment and i feel well thanks

  9. mahen

    On March 19, 2009 at 1:26 am

    i liked it coz it was very informative 4 me it helped me in my assignments a lot.

  10. Khwaja Aftab Ali, USA

    On April 2, 2009 at 4:07 pm

    Thank you, Shakir and Mahen for appreciation of my article about neglected regions of rural areas in Pakistan. I am glad that the article is useful for your studies. All the best, good luck to you all, AFTAB ALI

  11. mirza idrees baig.

    On April 16, 2009 at 6:59 am

    very naice article.the best article.

  12. Lubz

    On May 2, 2009 at 7:00 am

    Such a nice article,get alot of info…thnx for shearing..

  13. mustafa chattha

    On May 27, 2009 at 11:39 pm

    wao gud articals are here for unemploment

  14. Asim Malik- from fsd

    On June 30, 2009 at 7:39 am

    Although it is very infermative artical but you should add comparison with developed contries.

  15. fakiha

    On September 28, 2009 at 6:08 am

    its realy good and i appreatiated

  16. ali khan

    On October 14, 2009 at 7:25 am

    good yr ………..thx.

  17. ali khan

    On October 14, 2009 at 11:20 am

    hey thax yr nice job keep it up jee……………………………..

  18. sana

    On October 25, 2009 at 2:08 pm

    nice….. helped me aloads wid ma assignment!

  19. Imran Siddiqui

    On December 8, 2009 at 6:15 pm

    Very very good article Sana. I sent you an email and would like to talk to you about a new project that we are working on. best regards. Imran

  20. ayesha

    On December 15, 2009 at 4:12 am

    very good site

  21. umar islam

    On December 19, 2009 at 6:04 am

    i think topic is really nice. all people r awared abt unemployment.
    i can also suggest one example to increase employment
    Govt instead of establisging industries in punjab should have to establish them in Balochistan Govt should announce that people who will establish industries in balochistan should not have to give tax for 5 years after that a startegy should b generated.
    Now ourv govt instead of taking debt from america in shape of rupees shuld have to take agriculture specialist from america which utilize mroe resources of pak and our econony will increasw………………..please give me guggestion back

  22. zeeshan ahmed

    On February 9, 2010 at 4:21 am

    good articles i can say these are the best articles

  23. farihanaz

    On March 16, 2010 at 12:14 pm

    salaaaaaaaaaaaam………..its a very informative and a very fantabulous article. i liked it very much….i am shocked to see the unemployment results. i hope everything will b better soon INSHALLAH.

  24. ayesha qadir

    On April 19, 2010 at 12:02 pm

    v informative article.ppl i wnt to knw ans search the issue as sana also mention thousands of graduates are unemployed.wt r reasons behnd unemployed gratuadest?

  25. amin ud-din

    On April 21, 2010 at 6:48 am

    very informative but the refrences andsliterature review are not mentioned that is why it looks like an essay that is written on the basis of personal thinking and the views of the scholors are not given towards this issue.


  26. muqadsah bukhari

    On May 16, 2010 at 12:58 pm

    i like it but references r nt available

  27. BS Hons

    On May 21, 2010 at 12:57 am

    it helps me alot for my assignment. thanks and keep it up..

  28. khizar

    On May 23, 2010 at 1:13 pm

    it is very great article bcoz its a lots of help me to my presentation topic.thaksssss

  29. shalil

    On June 16, 2010 at 12:39 am

    it is very good.


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  31. HINA

    On October 6, 2010 at 5:32 am

    this article(page) is very informative but honestly speaking this article requires more informations which should be added, like how to overcome the unemployment rate. thanks

  32. mari

    On May 21, 2011 at 11:42 am

    nice article

  33. mari

    On May 21, 2011 at 11:42 am

    nice article………………

  34. ahsan

    On March 5, 2012 at 10:39 am

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  35. Khwaja A Ali

    On March 17, 2013 at 3:58 am

    Pakistan has around 144 districts and every district has 4/5 so called political families / local feudal lords. One can check their historical background, doesn’t matter if the present generation is educated or little sophisticated. Since independence these families are in power except short period of ZA Bhutto with little participation of middle class. Majority seats in Parliament are from Rural areas and Urban area politicians have the same feudal attitude. Most of these feudal run parallel government in whole district (in tehsils & villages) controlling police and revenue (thana & Kacheri). Even the justice department is also influenced by them in one way or the other by dictation to lawyers and judges.This elite ruling class is corrupt, cruel, law beaker and criminal in many cases. Nothing will change in Pakistan as long as the Development Funds are being distributed among the elected elite. Politics is the highest profitable business of few hundred people in the country.

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