Unemployment in Pakistan Its Causes, Effects and Solution / Reduction

 You will learn today about Unemployment in Pakistan Its justification, Causes, Effects, and Solution to reduce the same issue. Basically, Unemployment is also known as joblessness and redundancy.  It is a situation when an individual is unemployed and he Is pursuing ways to get employed. It is the worst situation for the unemployed idle person who is actively searching for a job and unable to find work. Unemployment is one of the most important indicators of the economy. The rate of unemployment indicates the health of the economy.


Increasing Unemployment in Pakistan Its Causes, Effects, and Solution


In every economy of the world unemployment is a very serious problem. Pakistan is one of the developing countries and it also faces this big issue. With the gradual increase in population growth, the demand for jobs also increases. Various Governments tried to reduce or minimize unemployment in Pakistan. Recently Punjab Government announced the Loan through Punjab Employment Scheme 2023 to get a maximum of 10 million loan amount. Such schemes are really very effective if implemented properly.

                       Like all developing countries Pakistan Is also covering this problem.  The government of Pakistan is also taking it seriously and taking many steps to reduce the percentage of unemployment by providing job opportunities in various departments. Government always tries to produce opportunities for employment for not only well-educated candidates but also for candidates who are not well-educated but skilled and experienced in their fields.  In Pakistan almost 5% of the labor force is unemployed.  This labor force is available for work but they do not have any opportunity to do work and earn. The government of Pakistan announces various jobs to reduce the same. There are updated upcoming jobs PPSC vacancies 2023 that Commission will announce soon. , Punjab Govt will announce these jobs and many unemployed will get these jobs.


Justification and Reasons for Unemployment


Unemployment doesn’t mean the situation of those people who are seeking jobs or employment opportunities. But this term is used also for those people who are not ready to do any work.  They want to earn, eat and spend without doing anything. There are various reasons that cause unemployment. One of the most important reasons for unemployment is a global recession, education, and financial crisis. Global competition truly affects unemployment. The unemployment rate Is a constant measure of unemployment. Here are some basic causes and reasons for unemployment;


  1. Lack of Industries: Industries provide maximum employment opportunities.
  2. Limited institutions of technical and vocational education: This makes the people unskilled until they are not trained for specialized work.
  3. Lack of developed machinery used in the agriculture sector: Farmers are still using backward machinery.
  4. Unskilled labor force: Industries need a skilled labor force that can run innovative machinery. But, due to a lack of technical knowledge they are unable to use the latest machinery.
  5. Gender Discrimination: it is also the cause of unemployment. The maximum percentage of the Pakistani population is women. But still, women are treated as out of the workforce.


Effects of unemployment


As unemployment is considered a very important indicator of an economy. It can affect not so good   the economy of any country as it can affect:


  1. Reduce capital formation
  2. Reduction in labor productivity
  3. Low savings as low income
  4. The living standard of people starts to get low
  5. Less usage of human resources. As people do not find any Employment Opportunities so they have no means to earn money for their families and for themselves.


Suggestions to Reduce Un- Employment


Government can use many strategies to reduce the growing rate of unemployment. Following are some suggestions which government can use to increase the employment rate:


  1. Change in the Monetary Policy of the State Bank is also essential for increasing the employment rate. State Bank can cut the interest rates which helps to break through the aggregate demand. State Bank of Pakistan should also grant easy and interest free loans to youth and skilled workers.
  2. The provision of technical and vocational education to the people will also be effective. This will help them to start their own work in their specialized fields. They May be able to use the latest machinery in the industrial sector and in the agricultural sector.
  3. Encouraging investors to invest in miserable and pessimistic areas, can increase the employment rate in such areas.
  4. Government must expand the industrial sector in order to provide more employment opportunities
  5. Government has to Increase the geographical mobility of human resources so that more people can be benefitted from employment.




After discussion we conclude that unemployment is indeed a major issue of an economy but, we can reduce its rate by using many strategies discussed above and make the economy of the country healthy and strong.


You may also like: Key Issues of the Education Department in Punjab



Unemployment in Pakistan Its Causes, Effects and Solution

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