Professional Documents
Culture Documents
Unemployment in Pakistan
Unemployment in Pakistan
http://www.indexmundi.com/pakistan/unemployment_rate.html
Unemployment figures
If the unemployment rate is as low as the government claims it to be, then even the
minor uptick in the number of people without work would not be cause for worry. Yet we
find ourselves highly sceptical of the data emanating from the Pakistan Labour Force
Survey for fiscal year 2010, which suggests that the unemployment rate was a meagre
5.6 per cent. We are not certain as to whether the error is a genuine methodological
flaw or whether the government is deliberately fiddling with the numbers, but all
anecdotal evidence suggests that the real rate of unemployment is significantly higher.
Regardless of the source of the error, we would urge the government to come up with
more accurate computations about the state of the Pakistani labour force. It is bad
enough to provide inaccurate information to the public. It is even worse if the
government is using this data in its own planning efforts.
A 5.6 per cent rate suggests that unemployment is not a serious problem in the country,
yet the overwhelming majority of economists and public policy experts agree that it is
one of the most serious economic concerns facing Pakistan today. If the government
cannot get itself to admit the problem, then how can it be expected to work towards a
solution?
It is highly likely that the labour force survey is just another in a long line of symptoms
showing that the current administration has neither the wisdom nor the courage to
confront the country’s economic challenges and would rather hide behind distortions
and platitudes. We remain confounded as to why that should be so. The economy is
admittedly in bad shape and it will take strong efforts to get it back on track, but there is
a near-unanimous consent amongst experts as to how get the task done. It is time for
the administration to cease commenting and start taking charge of the economy. The
government owes it to the people to be honest about the scale of the problem as well as
the hard measures that would be needed to move towards a solution.
The latest surveys of employers and households both show continued deterioration in
the U.S. job market. For the 22nd consecutive month the number of payroll jobs fell. In
view of the turnaround in GDP statistics in the July-September quarter, the continuing
decline in both manufacturing and service-sector employment is especially
disheartening. The combination of rising output and shrinking payrolls means that
employers are still scrambling to find ways to produce more output with less labor input.
The latest productivity numbers, released yesterday by the Labor Department, confirm
that U.S. output per hour is rising strongly. This is good news for companies’ costs and
possibly for future wage gains, but it is bad news for job seekers.
If there is a silver lining in the latest jobs report it is that the pace of job market
deterioration is much slower than it was earlier in the year. Payrolls are still shrinking
but much more slowly than they were last winter. This sliver of good news cannot be
very reassuring to the unemployed. The BLS report shows there were an additional
560,000 jobless workers in October compared with September. Their job prospects are
bleak. The number of unemployed workers who have been jobless for 6 months or
longer hit a new all-time high in October, reaching 5.6 million workers or 3.6 % of the
labor force. The average duration of unemployment in October also hit a new record,
26.9 weeks. This is an increase of more than 10 weeks since the recession began.
Compared with the strong job market at the end of the 1990s, the average duration of
U.S. unemployment spells has approximately doubled.
The current recession has also seen the steepest decline in the employment-to-
population ratio in the modern era. Since the peak of the last economic expansion in
December 2007 the percentage of Americans who hold jobs has fallen 4.2 percentage
points, dropping from 62.7% to 58.5% of the population 16 and over. The adult
employment rate is now lower than it has been anytime in the past 26 years. Many
people who hold jobs are also suffering. Almost 9.3 million workers, or 6.7% of those
with jobs, are employed in part-time positions even though they would prefer to work in
a full-time job. The latest employment and unemployment statistics confirm that, at least
in the job market, this is the worst economic downturn since the Great Depression.
http://www.theodora.com/wfbcurrent/pakistan/pakistan_economy.html
Economy - overview:
agriculture: 21.8%
industry: 23.6%
Labor force:
55.77 million
note: extensive export of labor, mostly to the Middle East, and use of child labor (2009
est.)
agriculture: 43%
industry: 20.3%
Unemployment rate:
[see also: Household income or consumption by percentage share - lowest 10% country
ranks ]
30.6 (FY07/08)
41 (FY98/99)
Budget:
Public debt:
NA%
Agriculture - products:
cotton, wheat, rice, sugarcane, fruits, vegetables; milk, beef, mutton, eggs
Industries:
Electricity - production:
Electricity - consumption:
Electricity - exports:
Electricity - imports:
Oil - production:
Oil - consumption:
Oil - exports:
Oil - imports:
0 cu m (2008 est.)
0 cu m (2008 est.)
Exports:
Exports - commodities:
textiles (garments, bed linen, cotton cloth, yarn), rice, leather goods, sports goods,
chemicals, manufactures, carpets and rugs
Exports - partners:
Imports:
Imports - commodities:
Imports - partners:
China 15.35%, Saudi Arabia 10.54%, UAE 9.8%, US 4.81%, Kuwait 4.73%, Malaysia
4.43%, India 4.02% (2009)
Debt - external:
Exchange rates:
Pakistani rupees (PKR) per US dollar - 85.27 (2010), 81.7129 (2009), 70.64 (2008),
60.6295 (2007), 60.35 (2006)
http://www.gfmag.com/gdp-data-country-reports/204-pakistan-gdp-country-
report.html#axzz1Kuu33GaH
*Estimate **Forecast
First is due to the adoption of latest machinery and capital intensive technology. Due to
this, demand for labour has been decreased. Second is the backwardness of this
sector. There is less availability of fertilisers, pesticides, quality seeds, absence of land
reforms and lack of agriculture education. Due to all these factors agriculture sector is
not expanding and there is general and disguised unemployment.
ii. Industrial sector is the second largest sector of our economy and contributes 19% to
national income. This sector should employ a large number of labor. But due to
backwardness it is employing a small number of people. Due to electricity breakdown
already established industry is deteriorating, resulting in the prevailing unemployment
ratio.
iii. High cost and low quality are responsible for less demand for our agri and industrial
items. Because of less demand of such kinds of goods both the domestic and
international producers are losing their interest in production. That’s why people are
becoming unemployed.
v. Millions of people in Pakistan are poor. Due to poverty people are overburdened with
expenditures and their savings are very low. It is said that for the reasonable growth of
economy saving rate should be at least 25% in any country, but in Pakistan it is only 13
to 14% which is very low. Low investment level is due to less savings, ultimately there is
unemployment.
vi. In Pakistan majority of the businessmen are less educated. They do not know how to
run their businesses properly. So they become bankrupt. This factor generates
unemployment on a massive level.
vii. In Pakistan there is lack of every kind of planning. There is a huge difference
between the demand and supply for labor. There is absence of such kind of planning to
produce doctors, engineers, technical experts scientists etc, according to the need of
different sectors of the economy.
ix. In Pakistan, tax system is not satisfactory. Ratio of direct taxes is more than indirect
taxes. Tax evasion is common. Due to less income from the taxes, government cannot
start developmental projects. If there is no investment, then from where public would
find jobs. On the other side if government takes step to increase indirect taxes, it would
also affect investment and ultimately employment level.
xi. Pakistan’s population growth rate is 1.8% which is the highest in the region. Our
resources are limited. Different sectors of economy are unable to provide jobs to the
growing population. So there is unemployment.
xii. Fiscal and monetary policies are also responsible for unemployment. In view of fiscal
policy, Pakistan has less funds to invest in job providing projects. Every annual budget
shows deficit. Through the monetary policy if the government increases the rate of
interest, it discourages the investors from getting loans.
xiii. Political instability, bad law and order situation, army’s interference, bomb blasts,
terrorism, inconsistent economic policies etc are the factors which are disturbing
domestic and foreign investment. Pakistan investors are taking away their money to
Dubai and other countries of the world.
xiv. Due to 9/11 incident, Gulf war and the baseless allegations of terrorism the image of
Pakistan has been affected very badly at international level. So in the current scenario
Pakistan has limited job opportunities in other countries of the world.
xv. Craze for work only in government sector, instead of private sector and seasonal
firms, industries are also responsible for unemployment.
xvi. Since 1947, Pakistani rulers got loans from IMF, World Bank and many other
sources. Such loans were not utilised honestly. Current external debt of Pakistan is
more than 50 billion dollar. Government has to allocate a big amount for the repayment
of loans with interest. So due to less resources for developmental projects there is
unemployment.
Concluding, I would like to suggest that with proper economic planning, consistent
policies of government, better law and order situation, abolishing energy crisis, sincerity
with Pakistan and by adopting the Islamic economic system we can not only tackle the
issue of unemployment but every economic problem of our country as well.
http://www.opfblog.com/8449/reasons-for-growing-unemployment-in-pakistan/
http://www.indexmundi.com/pakistan/unemployment_rate.html