Pakistan's Alarming Unemployment Crisis: A Deep Dive into Youth Disillusionment
Unemployment Rates in Pakistan
New Delhi: According to the nation’s inaugural digital census, Pakistan's unemployment rate is currently at 7.8%, equating to around 18.7 million people without jobs in a total population of 241.5 million.
The situation is even more concerning among the working-age demographic, where the unemployment rate escalates to 11% among 171.7 million individuals deemed economically active, as reported by a local media outlet.
The article emphasizes that the unemployment issue is more severe than it seems, with one-third of the youth aged 15 to 35 currently jobless.
Moreover, the reported unemployment rate does not reflect the millions of young individuals who are neither engaged in education nor employment, often referred to as NEET. This group includes those who have ceased job hunting, are involved in unpaid work, or are stuck in low-yield family businesses.
The participation of women in the labor force is alarmingly low, one of the lowest in the region, which further complicates the NEET situation and marginalizes half of the potential workforce.
The article also points out that structural unemployment is on the rise, as the skills of the workforce do not meet the changing demands of the economy. The education system in Pakistan, characterized by poor quality and outdated curricula, fails to provide students with the necessary skills for the job market. Limited vocational training and a preference among educated youth for scarce public sector jobs exacerbate the issue.
By 2025, Pakistan's unemployment rate is projected to reach 8%, with a total labor force of 85.18 million and approximately 6.81 million individuals unemployed. The employment rate is around 52.2%, indicating that nearly half of the working-age population is either jobless or underemployed.
Factors such as inflation, a foreign exchange crisis, and the impacts of the 2022 and 2025 floods have severely affected small businesses and local job markets. The World Bank's Post-Disaster Needs Assessment has revealed billions in damages, pushing millions back into poverty. Without timely and effective policy measures, these shocks could convert otherwise employable youth into long-term economic casualties.
The consequences of youth unemployment extend beyond mere economic factors. Disadvantaged youth are more vulnerable to poverty, forced migration, and recruitment into criminal or extremist groups. The psychological impact, leading to feelings of hopelessness and despair, is significant and damaging.
In less developed areas, young individuals are often trafficked into bonded labor, coerced into begging, or forced into the sex trade. The coal mines of Balochistan have become notorious for such exploitation, where workers face life-threatening conditions due to a lack of safety measures. Although these tragedies occasionally make headlines, they highlight a broader systemic failure to safeguard youth from exploitation. The absence of job opportunities also contributes to a rise in street crimes, as young men resort to theft at gunpoint.
In certain madrasas and on social media platforms, disenfranchised youth are attracted by the allure of respect and power, often symbolized by weapon possession. This radicalization poses not only a security threat but also reflects a societal failure to provide meaningful alternatives for its youth.