Islamabad: Unemployment Rate Rises from 1.5% to 7% in a Decade
A report by the Ministry of Planning highlights a concerning rise in Pakistan’s unemployment rate, which has surged from 1.5% to 7% over the past 10 years.
The report attributes the growing unemployment and economic strain to a rapidly increasing population, which grows by 5 million annually. In comparison, unemployment in India stands at 4.5%, while Bangladesh records over 5%, both showing better trends than Pakistan.
According to the Planning Commission, the employment rate for women in Pakistan has stagnated at 22% over the past 13 years, despite women constituting 46% of the population. This makes Pakistan the worst performer in female employment in the region.
Key Challenges Highlighted in the Report:
- Economic Growth: Pakistan’s GDP growth is insufficient to meet basic needs like health, education, and food.
- Job Creation: The country requires 1.5 million jobs annually to address unemployment effectively.
- Youth Unemployment: The youth unemployment rate must drop by 6% to create a stable labor market.
- Per Capita Income: At $1,680, Pakistan’s per capita income lags behind other regional nations.
Educational Crisis:
The report reveals that approximately 25.5 million children remain out of school, with literacy rates at just 61%. Punjab leads in out-of-school children (9.6 million), followed by Sindh (7.8 million), Khyber Pakhtunkhwa (4.9 million), and Balochistan (over 5 million). Pakistan ranks as the second-highest country globally for out-of-school children.
Housing Shortages:
The country faces a severe housing crisis, with 7.7 million of the 38.3 million houses being unpaved.
The findings call for urgent measures to address unemployment, population growth, and educational deficiencies to prevent further economic and social challenges.
