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 A PROJECT PRESENTATION ON UNEMPLOYMENT AND ITS IMPACT
ON THE ECONOMIC GROWTH OF PAKISTAN
AKHUWAT COLLEGE FOR WOMEN CHAKWAL

PRESENTED BY :
 Ayesha Sadiqa

 Uha-Mustafa

 Huma Mazhar
 CONTENT

 Unemployment
 Causes Of unemployment
 Types Of unemployment
 Unemployment Rate in
Pakistan
 Case Studies (Its impact on
economy Of Pakistan)
 Literature Reviews
 Literature Gap Overview
 Conclusion
 First Question that arise is What is unemployment?

 Our country faces problems like any

other country in the world. Poverty,
crimes left unsolved, environmental
issues, etc.
 most of these were easy to solve if it
was immediately prevented. But these
were not prevented, and many more
problems stopped from this. One of
these problems is unemployment.
 Unemployment occurs when a person
who is actively searching for
employment is unable to find work.
UNEMPLOYMENT
Meaning of unemployment:
 Unemployment is an economic
phenomenon that people who want and
are able to work cannot work because of
the shortage of work (job places).
 Unemployment describes the state of a
worker who is able and willing to take but
cannot find it.
 A high unemployment rate generally
indicates an economy, in recession with
few job opportunities, while a low
unemployment rate points to an
economy running at or near full
accelerator.
 Causes Of Unemployment

Education system.
Faulty planning.
Hardworking deficiency
Profession selection
Agricultural application
Lack of skills and work experience
Growth of population
Technology advancement
TYPES OF UNEMPLOYMENT

1. STRUCTURAL UNEMPLOYMENT

2.FRICTIONAL UNEMPLOYMENT

3.CYCLICAL UNEMPLOYMENT

4.SEASONAL UNEMPLOYMENT
UNEMPLOYMENT RATE IN PAKISTAN 1999-
2020
 Impact of unemployment on Economic Growth Rate

The empirical findings from the study show

that unemployment and inflation rates both show a
negative relationship with economic growth and are
significant statistically. The population growth rate has a
positive and statistically significant impact on economic growth
LITERATURE REVIEWS
First Case Study:
Umar and Raza (2013), studied experiential relationship between GDP and
Unemployment rates of Pakistan Economy. They also used time series data
from time period of 2000-2010. Data is taken from National website of
Pakistan of last ten years from 2000-2010. Correlation, Regression analysis
and t-test is used in order to show the relation of unemployment and its
impact on economy of Pakistan. The unemployment is a V-shaped first
decreasing and then increasing from 2000-2010. It can be seen that minimum
and maximum values of unemployment have a large gap in ten years
comparatively the variation of GDP is low. Descriptive Statistics about GDP
and unemployment shows the correlation between GDP and unemployment
has been insignificant with unimpressive value of 0. 196.The conclusive
outcome of the research study is that unemployment is found insignificantly
influential for GDP of Pakistan.
Second Case Study On unemployment & Its Determinants

S. Zulfiqar and Sabiha Parveen et.al (2022), examined the impact of

unemployment on the growth rate of Pakistan from 1974-2020. Empirical
investigation is carried out by using ADRL method (Unit root test). The
secondary data is collected during the year from 1974-2020, collected
from World Development Indicators (WDI) and Economic survey of
Pakistan. The variables GDP, Inflation rate, Population Growth rate,
unemployment rate and Government expenditure are used. GDP is
dependent while rest of all are independent variables. This studies shows
that in long run, there is a negative relation between unemployment and
GDP, increase in unemployment can significantly decreased Growth of
country while inflation shows a negative impact on GDP while in short run
the investment and population has a positive relationship with GDP growth
rate. Results suggest that government should go for development
expenditure and should provide employment facilities to the people living in
urban and rural areas of Pakistan.
Third Case Study On Gender Discrepancy and unemployment

Atta Muhammad Asif et al. (2015), examined the statistical analysis

of factors affecting the women employment in Pakistan.
Questionaries and suggestion is used in this study. This study utilizes
the secondary data which was collected from the nationally
representative Pakistan Demographic and Health Survey. For
national and Provincial level Population and Health indicators was
used to provide information from 2012-2013 is the primary objective
of this survey. This study showed that that out of 13,558 women
10,833 are unemployed which means 20% of women are employed
and doing job while 80% are unemployed at the time of survey. The
other thing that's matter is the status of women .The women with a
rich wealth status has 68% chances of being unemployed and
women belonging to lower middle class has 40% chances of
unemployment. This study shows that if the opportunities for women
employment increases economy of countries will be better that now.
Fourth Case Study On Inflation, GDP & Unemployment

A.R Cheema et al. (2014),This study is focused on the experiential relationship between
inflation, GDP and unemployment rates of the Pakistani economy. The data is taken from the
national statistic website of the Pakistan. The period for the present study is from 2000-2010.
For the research study data has been gathered from the financial reports of the national
statistic website of the Pakistan of the last ten years from 2000-2010. Ten years are taken
because it will provide us a sound analytical position for observing inflation, GDP and
unemployment rates at the national level of the Pakistani economy. The research study would
be carried out on the basis of correlation, regression analysis, t-test and ANOVA model. The
findings of the research study would provide statistical facts for examining the stated
phenomena numerically The data of the present study was fed into SPSS 16 for examination
mathematical calculation. All the data has been refined from the financial reports of the last
ten years (2000-2010). The initiatives are to be taken in a logically acceptable format to
understand the working position affectively. The results of the quantitative outcome proved
that inflation is one of vibrant and influential phenomenon in the economy of Pakistan. The
inflation needs to be considered as one of the important factor for the economies to consider it
towards strategic economic decisions. The quantitative factors of the economies are mainly to
be considered for the strategic decision to lead the rational approaches in the economic
decision.
LITERATURE GAP
Unemployment which is a curse, persists not only in
Pakistan but covers the whole world. . According to
this study economic growth and unemployment
shows that there is a high correlation between the
economic growth rate and decrease in the
unemployment rates. . The role played by
employers in reducing unemployment for redundant
workers, and the effects on unemployment spells
and transition on the labor market, are neglected in
both social policy and HRM literatures. Researches
should use different methods and measures such as
U-3 (which is the most commonly cite measure that
tracks the percentage of people who are actively
seeking work) to know about the unemployment rate
more precisely and also have to work for promoting
the awareness to reduce it.
. Researchers should also pay attention towards the
variables, all Part-Time and Temporary Work, as
well as regular Full-time employment hours to study
more deeply and precisely. In addition to this,
Government also have to make Policies that can
help to cop up with the unemployment problems that
are prevailing in Pakistan as root of tree. Policies to
reduce unemployment in Pakistan are promoting
education and training institutes ,Reduction of the
Power trades unions, Improvement of , Labor
Market, Remove Gender Discrepancy, Work to
promote the contribution of women in labor market
and other factors of production, improve the
investment rate, Tax free trade and Mobility and
increasing the maximum working hours. This can
improve the economy of Pakistan and Increase the
economic Growth of Pakistan.
 As this studies show that that the impact of
unemployment is worst on the Pakistan economy as
the GDP of Pakistan is 40.01 Billion USD (1990)
and the unemployment rate is 3.6% according to
population the GDP of Pakistan is now 292.00 USD
Billion and unemployment rate sank by 18.92%. It’s
shows that the reduction in unemployment rate
increase the economy of Pakistan so we have to
work for reducing unemployment from Pakistan
regarding both Males and Females by improving
their education and Training.
 CONCLUSION
 These Studies Shows that unemployment has
worse impact on our economy & GDP rate.
 Govt. Should make Policies that will help to cop
up with the problem of unemployment in
Pakistan
 The Determinants of unemployment i.e.
Population, Lack of Education, Down Currency,
Inflation have to be controlled and needs
favorable attention.
 Moreover establishment of institutes that will
provide basic skills to youth so that they will run
businesses instead of seeking a job.
 It will help to increase Growth Rate of Pakistan.