Unemployment In Pakistan: Reasons Behind This Persistent Issue

It is a hard fact that unemployment has become the number one problem of Pakistan. This is growing by leaps and bounds not only in rural areas but also in urban areas of Pakistan. Many top universities of Pakistan producing thousands of young graduates every year but failing to get a good job on completion of their degree. It is a fact that we hear from our friends or relatives who do not get a job even after graduation. Pakistan Bureau of Statistics reported that the unemployment rate has increased to 5.1 % to 5.7 % and it is still growing. This is a very alarming situation especially for the youth as they are looking to get a job as soon as they have a degree in their hands. But unfortunately, we are lacking to provide adequate measures to reduce this unemployment rate. To address this persistent issue we should dig deep into the reasons behind this prevailing unemployment. Although there are many causes of this constant issue, some of the major bases of the problems are following.

A rapid increase in population

The growth rate of Pakistan is considered to be one of the highest population proliferates. Rapid growth in population is also one of the major determinants of increasing the unemployment rate of Pakistan. There are several reasons for population growth; lack of family planning education, lack of women empowerment, poverty, preference to have more sons and many other constraints are there. These are the real threats of population growth and consequently a great cause of unemployment.

Constant recession

The current economic crisis of Pakistan are huge due to this there are many trade-offs we can see from the last couple of years. The global recession has affected Pakistan’s economy but unfortunately we failed to take extraordinary measures to get rid of with the crisis. IMF has approved a loan of $6 Billion to support Pakistan economic condition which may help to have sustainable growth in the country. It may also help to reduce the unemployment rate in the country.

Impact on inflation

A favorable economic growth, low unemployment can only help to maintain a low inflation rate. The increase in the general price level reduces the buying power of people. Monetary policy can be used to stabilize the general price level. The government should also take measures to improve employment, so consumer’s cost of living does not increase; hence there is a positive change in the economy and no increase in inflation.

Culture of Nepotism (Sifarish)

We can observe the culture of Nepotism everywhere in Pakistan. Irrespective of the fact, whether you are looking for a job in the private sector or public sector. The culture of Nepotism (Sifarish) exists there. Such social evils are also one of the major reasons for unemployment. People, who are hard working and are skilled, don’t find a good job because they don’t have any reference or sifarish. Such kind of preferential treatment should be eliminated from Pakistan and Jobs should be given on merit basis.

Lack of industries

In the current situation as Pakistan is facing serious financial crisis which is resulting in a rapid increase of dollar rate because of the insufficient balance of payments, Pakistan stock exchange is also facing a downfall. The demand for labor has decreased. Due to the backwardness, the industrial sector is accommodating only a small number of people. On the other end, insufficient growth in the industrial sector can be seen. The causes behind this are shortage of capital and investment in the country to build new industries. Less collection of taxes also hinders the government of Pakistan to establish new factories and industries in the country.

The solution to the problem

I would like to suggest that both the government and the private sector should take the initiative to solve this persistent issue of Pakistan. Proper economic planning, effective Government policies law and order situation in the country should be improved. The latest technologies should be used in the agriculture sector; the use of advance machinery can help in boosting agriculture output in Pakistan. Almost 44 % of people get jobs from agriculture, which is 20.9 % of the total GDP of the country. Therefore we seriously need to expand this sector.

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