UNEMPLOYMENTIN PAKISTAN………………………………..

Submitted by:-

Faiza Sarwar (1204196), Saima Sarwar (1204212), Muhammad Waseem (1204136)

UNEMPLOYMENT IN PAKISTAN

Unemployment in Pakistan is not only a topic but also a growing major problem in the economy of Pakistan.

Let’s starts from the root, now a days, you see for every single job opportunity, there is vast pool of candidates. Jobs, which pay a lot in developing countries, are paying a little in comparison if you see in Pakistan. Why is that so? What is influencing so many people to claim or to go for the single opportunity even through they are from different regions, cultures, environment, and backgrounds and even from different fields of education?

The biggest reason is unemployment in our beloved country now, before we further continue our topic unemployment in Pakistan. We need to know, what is unemployment? And before we continue to understand what unemployment is, we need to know labor force? The labor force is the actual number of people available for work.

Labor force 57.24 million (57,240,000)

Agriculture 45% & Manufacturing 13.7%

Here the only thing requiring concentration is the actual number of people available for work.

Before determining the actual number of people, we need to know the category or characteristics of people, some people are ignored or exempt from the labor force.

These people are:

Under 16 to mandatory age of retirement (which is 60 years in Pakistan).

Home makers : like housewives, househusbands, of course provide services for the family which means they work but they are excluded from Labor force.

Student: here I refer to the student, who studies full time, not the student, who is doing executive study or part time study like weekend programs. The student, who does a full time job is included in labor force.

Elderly: as we all know many people prior to mandatory retirement age work but they are not in labor force.

Military: is excluded from labor force the reason is that they are away from production side.

Institutionalized: Peoples who are in previous mental hospitals are not in the Labor force.

Disabled: Special peoples are not in the labor force.

UNEMPLOYMENT:

Unemployment or Joblessness occurs when people are without work and are actively seeking work that’s why slackers are major problem in determining the unemployment. Unemployment rate is calculated by dividing unemployed people by labor force and multiplying by 100.

Let’s continue the topic of unemployment in Pakistan. The population of Pakistan;

Population 184.27 million (184,270,000)

o Rural 114.4 million (114,400,000)

o Urban 69.87 million (69,870,000)

Unemployed

o Punjab 2.1 million (2,100,000)

o Sindh 0.7 million (700,000)

o K.P.K 0.53 million (530,000)

o Balouchistan 0.07 million (70,000)

Total unemployment 3,400,000

CAUSES OF UNEMPLOYMENT: The main causes of unemployment of skilled and unskilled persons are as follows:-

(1) High rate of population growth of 2.03% is the major factor of rising unemployment in the country

(2) Low level of saving and investment provides less opportunities for employment,(3) Mismatch in demand for and supply of laborer in various sector of the economy is

also an important causes of unemployment in rural areas is less than in urban areas (4) Declining employment opportunities in agriculture ,due to mechanization, the rate

of unemployment, therefore gas hone up (5) Absorption of persons in large scale industries, due to the installation of

improvement automatic machinery has gone down. This has also led to increase in the unemployed labor force.

(6) Rural urban migration. People from rural areas come to the cities for seeking jobs. Many of them remain unemployed/under-employed due to lack of employment potential in the urban areas.

(7) Political instability in the country. Political instability in the country has adversely affected all sectors of the economy the industrial expansion has slowed down. The prolonged ethnic troubles in Karachi too have created unfavorable environments for employment. All these factors have led to increasing unemployment rate in the country.

(8) Prevailing education system. The present educational system is not job or skill oriented. In the absence of vocational and technical education, a large number of educated youth remain jobless.

BENEFITS:

1. Vast pool of candidates per particular opportunity.

Where ever unemployment rate is higher you have more choices for recruitment.

Example: There are two jobs and in fist situation we have 8 candidates here the chance of getting effective & efficient human resource are very few may be you get a good employee may be you get a bad employee.

Now, in the second situation here is a job that nearly two hundred employed peoples want to attain here you have a large amount to choose, the chance of getting good employee are higher than first situation. Here you are more satisfied.

2. Declining work hours.

Whenever the unemployment rate is higher the government & companies try to decline work hours for recruitment of more talent.

EMPLOYMENT PROMOTION POLICIES:

The problem of unemployment is to be tackled on war footings in the Country. The following measures should be taken to minimize educated and uneducated unemployment in the country.

(1) Control over the population. Government is making serious efforts to reduce the rapidly rising population growth. This will greatly help in lessening the pressure from the supply side on the labor market.

(2) Establishment of industries in backward areas. Establishment of industries in backward areas by giving tax holidays, subsidy on industrial inputs will help in creating jobs in the backward areas.

(3) Focus on small scale industries. The small scale industries are to be promoted by providing liberal credit facilities. This will increase employment potential.

(4) Introduction of self employment schemes. The introduction of self employment schemes like VIPs (Youth investment promotion society) will greatly reduce the unemployment of educated persons.

(5) Skill formation. The vocational and technical institutions should be increased on larger scale to provide on the job training the unemployment of the technical persons will be greatly minimized.

(6) Construction industry. The construction of houses, roads should be encouraged in the private sector. This will create more jobs in the country.

(7) Purchase of locally manufactured goods. WAPDA, T&T and other government departments should be encouraged to purchase as far as possible locally manufactured engineering goods. This step will also generate employment in the country.

(8) Encouragement of agro industries. The encouragement of agro industries by providing technical, credit facilities will create additional employment in rural area.

(9) Rationalization of labor policy. In order to ensure labor discipline. The labor policy shall have to be rationalized. The businessmen and industrialists will be attracted to establish industries and increase employment opportunities.

(10) Sanctioning of loans to projects. The financial institutions should be directed to sanction loans for those projects which can create more job opportunities.

(11) Upgrading the quality of labor. For upgrading the quality of labor, human resource development fund should be created. The sill creation programmes will help in reducing cost of production, increasing sales and expanding marketability employment in the country.

(12) Appropriate monetary and fiscal policies. Appropriate fiscal and monetary policies can go long way in mobilizing resources for economic grouth and creating opportunities for employment, thus solving the acute problem of unemployment.

The government of Pakistan is taking following measures for providing employment, reducing poverty.(1) Expansion of family planning services in rural as well as urban areas.(2) Introducing and implementing employment promotion policies such as

establishment of “Khushali Bank, SME Bank etc.:(3) Establishing National Internship Programs(4) Launching of Rozgar Scheme.(5) Providing employment opportunities to skilled and non-skilled workers outside the

country.(6) Starting small public works programs such as Tameer-e-Pakistan and Khushal

Pakistan.(7) Establishing technology and business centres throughout the country.

MEMBERSOBTAINED

MARKSTOTAL MARKS REMARKS

TEACHER’S SIGNATURE

Faiza Sarwar

Saima Sarwar

Muhammad Waseem