Unemployment

Definition
• Often used as a measure of the health of economy
• The most frequent measure of the unemployment is the
unemployment rate, which is the number of unemployed people
divided by the number of people in the labor force
• Unemployment is one of the biggest problem of Pakistan
• That person is unemployed who has the ability to work & is willing to
do work but is unable to get job opportunities
• The current unemployment rate is around 6.9
Reason of unemployment in Pakistan
• The biggest reason for unemployment in Pakistan is concerned with
the backwardness of the agriculture sector
• Agriculture is the biggest sector of our economy that contributes
20.9% to GDP & 44% of people get jobs from this sector directly or
indirectly
Types of unemployment
• Seasonal unemployment
• Agricultural unemployment
• Frictional & technological unemployment
• Industrial unemployment
• Cyclical unemployment
• Educational unemployment
• Voluntary unemployment
• Involuntary unemployment (self employed working people are not working to their
capacity)
• Under-employment (people who are doing inferior jobs while they could do better
jobs, are not adequately employed
Causes of unemployment
• Free trade pursued by the British did not accelerate the process of
industrialization in the sub-continent, as a result employment
opportunities could not be generated on a large scale
• The unchecked growth of the population posed the problem of finding
jobs opportunities
• The decline of traditional skills & the decay of small scale & cottage
industries led to great pressure on land & this resulted in the greater
migration of the people from rural to the urban areas, this added to the
urban unemployment
• Low level of investment & the neglect of industrial sector could not help
the process of creating job opportunities
• Age factor fixes limitations on the choice of job opportunities, too
young & too old people are not eligible for many of the jobs
• One cannot find job of one’s selection
• Due to inborn disabilities or deficiencies some unemployed
throughout their life
• Population in Pakistan is growing at an alarming rate, all these people
who are eligible to work are not getting jobs
• Business field is subject to ups & downs due to the operation of the
trade cycle, sick industries compel their employees to become
unemployed
• Some of the young men & women are not prepared to undertake jobs
that are considered to be socially degrading or indecent, for example
• Occupational mobility & geographic mobility on the part of the
workers have increased the severity of the problem of unemployment
Effects of unemployment
• Unemployment is not only a societal problem it is also individual
problem
• An unemployed person losses self respect & faces discouraging and
disappointing attitude
• Unemployment causes physical hardships & mental torture not only
to the individual of the employable age but also to its family members
• If the breadwinner of the family losses the job, the entire family
suffers, in the absence of regular income the family has to fall back
upon its little savings and when that is exhausted it has to resort to
borrowings
• Unemployment if not checked or controlled may ultimately prepare
the way for social disorganization
• Due to the unemployment people fail to live up to the expectations of
society, some of them may even resort to anti-social activities,
criminal activities, gambling, drug addiction
• Unemployment causes incalculable economic losses, some
unemployed persons become parasites in a society they pose a big
economic burden
Remedial measures & suggestions
• Our population is growing on an average at the rate of 2.9% per year
• Job opportunities are not increasing at the same rate to accommodate the growing
population, hence the population growth has to be checked,
• Pay attention equally to agriculture & industry
• Construct major & minor irrigation projects, expansion & development of plantation,
• Development of forest & fisheries and encouragement of animal husbandry (dairy
farming, poultry, etc.) is a major step towards improving the agriculture sector
• Commercial crops can make agricultural tasks economically, attractive like fruits,
vegetables, tea, coffee, ginger etc.
• Planned development of industries
• Our education is not much job oriented it is degree oriented