ReportOnUnemployment

Submitted To:MamSarah RehmanSubmitted By:ShehrozAyaz (05)Syed Fahad (20)UsmanRasheed (15)UmairEjaz (16)Date of Submission:19November, 2014Masters of Business AdministrationPunjab Group of CollegesUniversity of Central Punjab Unemployment:

Unemployment is the number of people in the work force who want to work but do not have a job. It is generally stated as a percentage, and calculated by dividing the number of people who are unemployed by the total work force.

Problems & Solutions of Unemployment:1-Causes of Unemployment2-Effects of Unemployment3-Solutions of Unemployment

Causes of Unemployment in Pakistan: Growth of Population: One of the major problems regarding unemployment in Pakistan is uncontrolled growth of population. The population of Pakistan is increasing at very high rate this time. According to the statistical the population of Pakistan is increasing at the rate of 2.2%. There are plenty of factors responsible for over population such as early marriages, illiteracy, desires for sons, lack of awareness etc. Poor Education System: The education system in Pakistan has been really poor since the creation of Pakistan. Unfortunately any government since independence didnt take especial steps to make the education system good. Education system in Pakistan is unbalanced. It has been seen even talented students left study due to injustice of system. Violence and Terror Activities: Terrorist activities in Pakistan are on peak at this time especially in Karachi, therefore situation in Karachi is really threatening and alarming and due to this the nationals and as well as foreigners are frightened to invest in Pakistan. So when investors will not invest so how can job or earning opportunities are being created? Energy Crisis: There are many sources of producing of energy in Pakistan but due to lack of proper planning and efforts Pakistan is having problem of energy crisis. The government of Pakistan is unable to provide electricity to residential areas in Pakistan. High Age of Retirement: The age of retirement in Pakistan is 60 years and it is really high age of retirement The government of Pakistan is directly responsible for this factor. There are various educated people are in wait of jobs but high age of retirement is making young ones frustrated.

Poverty: The poverty rate is also on peak therefore uneducated and unskilled people can be found easily in Pakistan. Labor class is also affected by the unemployment. Due to unemployment the living standard of Pakistanis is going down with the passage of time. People are lacking from their basic needs. Advanced technology: Sometimes unemployment is a result of advanced technology, such as computers or robots, which replaces worker tasks with machines. If the workers are not retrained, they may not have the skills needed to get a new job. Job outsourcing: Unemployment can also be caused by job outsourcing, when a company moves its manufacturing or call centers to another country where labor costs are cheaper.

Effects of unemployment: Mental health: Mental health problems like: Law self-confidence, feeling unworthy, depression and hopelessness. With the lost income and the frustration involved in it, the recently unemployed may develop negative attitudes toward common things in life and may feel that all sense of purpose is lost. Frequent emotions could be low self-esteem, inadequateness and feeling dejected and hopeless. Health diseases: The unemployment overall tension can increase dramatically general health issues of individuals. Tension at home: Quarrels and arguments at home front which may lead to tension and increased numbers of divorces etc. Political issues: Loss of trust in administration and the government which may leads to political instability. Tension over taxes rise: Unemployment also brings up discontent and frustration amongst the tax paying citizens. In order to meet the demands of the unemployment fund the government many a times may have to increase the taxes. Insecurity amongst employees: The prevailing unemployment and the plight of the unemployed people and their families may create fear and insecurity even in the currently employed people. Crime and violence: Increase in the rate of crime. Suicide cases: Increase in the rate of suicide attempts and actual suicides as well. Social outing: Unemployment may bring a decrease in social outings and interactions with other people, including friends.

Stigma: Unemployment brings with more than just no work. It also brings with it the disgrace that the person has to bear. Nobody likes to be termed as unemployed.

Standard of leaving: In times of unemployment the competition for jobs and the negotiation power of the individual decreases. Thus also the living standard of people with the salaries packages and income reduced. Employment gaps: To further complicate the situation the longer the individual is out of job the more difficult it becomes to find one. Employers find employment gasps as a negative aspect. No one wants to hire a person who has been out of work for some time even when theres no fault of the individual per say. Lose of skills usage: The unemployed is not able to put his/her skills to use. And in a situation where it goes on for too long the person may have to lose some of his/her skills.

Solution of Unemployment in Pakistan: It will be tough ask for government to solve one of the major problems of Pakistan Unemployment due to huge population but still we have given some solutions to reduce the unemployment in Pakistan and we are hopeful by following these solutions the ratio of unemployment in Pakistan can be reduced or decreased. The first thing to do to reduce unemployment in Pakistan is the proper planning by the government of Pakistan. The education system of Pakistan should be equal and well managed. Well recognized training and technical institutions are need to be established where skills programs are offered. The age of retirement should be at least 55 years. Remove energy crisis so that investor comes to Pakistan thus job placement will automatically be created. There should be peace across the country so foreigners will not hesitate to invest in Pakistan. The agriculture sector should be developed. Jobs should be given purely on merits. Encourage multinational companies to business in Pakistan. Family planning centers should be opened to control the flow of over population.