Six Causes Of Unemployment In Pakistan in 2018

Six Causes Of Unemployment In Pakistan in 2018

Six Causes Of Unemployment In Pakistan in 2018

Six Causes Of Unemployment In Pakistan in 2018: Food, water and shelter; the basic necessities every individual needs to survive. The sad thing is many strive to survive but the odds always fall against them. The chain is pretty self explanatory, people work and earn and spend their earnings on necessities and savings on a later stage; the definition of an honest living. But misfortunes arise and the work factor does not exist for many in the survival equation. The causal effect leads to an increase in unemployment. Unemployment rate is basically the number of people actively looking for potential career paths divided by the actual workforce. End of the day we are just left with false promises of Roti, Kapra, Makan (food, water and shelter) and fraudulent messages from Benazir Income Support.

Our citizens may possess all the merits and talents, but what is the point if many of them can’t put it to good use. This is the reason many people move abroad to persuade and augment their career and finances. We would look at the current scenario in comparison to the past; reasons for unemployment and the potential paths to reduce it.

Current Unemployment rate in Pakistan

Pakistan has had its fare shares of ups and downs, and during the bad times a lot of people suffer. Unemployment may lead people towards a potential dark path, to avoid such circumstances we need to curb it (Six Causes Of Unemployment In Pakistan in 2018). The Current Unemployment rate of Pakistan as compared to the past and future forecasts is as Follows

Six Causes Of Unemployment In Pakistan in 2018

Current Rate 5.90%
Previous Rate 5.90%
Lowest Rate 3.10%
Highest Rate 7.80%
Q1/2018 6%
Q2/2018 6%
Q3/2018 5.72%
2020 5.70%

(Pakistan Unemployment Rate, 2017)

As per the given Scenario The Unemployment rate has been the same for the past year and 2017. The forecasted Unemployment rate predicts a slight rise  in 2018.  We need to consider mechanisms that reduce the rate much further than the rest of the world. The top 14 countries with the lowest Unemployment rate are as follows:

Six Causes Of Unemployment In Pakistan in 2018

  1. Japan 2.8%
  2. Iceland 2.8%
  3. Czech Republic 3.1%
  4. Mexico 3.5%
  5. Germany 3.6%
  6. South Korea 3.8%
  7. Malta 4.2%
  8. Norway 4.2%
  9. Hungary 4.3%
  10. UK 4.3%
  11. USA 4.4%
  12. New Zeland 4.9%
  13. Poland 4.7%
  14. Russia 4.9% (Hadzic, 2017)

Six Causes Of Unemployment In Pakistan

Supply is More than Demand

Pakistan has a high population rate, 39.1% of this population falls under Urban, where as the remaining 60.9% is Rural population. The overall population change is 2.4%; but the good thing is that in the recent years it has been increasing at a decreasing rate. The issue still remains that the supply of Labor force is ample due to a big size of inhabitants, but the available vacancies are less. The rural population is more as there is less awareness when it comes to contraceptives, education is not prioritized and many also keep having kids to have more sons.  This increase in population brings forward uneducated people seeking jobs and many of them don’t find a suitable role (Pakistan Population, 2017).

Lack of Foreign Direct Investment

There have been major threats in Pakistan from inside and outside terrorist activities. Due to lack of jobs, some of the many unemployed individuals become vulnerable and opt to earn via various crimes. some people also fall prey to ponzi schemes and lose a lot of their savings. This uncertainty leaves a void when it comes to foreign direct investment. People are reluctant in investing in a Pakistan, which is a gold mine with ample resources. Thanks to the All Mighty, the situation has become much better in the last year and we have seen an increase in investments. If people become more prone to invest in Pakistan, this would create many jobs for skilled and unskilled labor. A popular example of how FDI leads to jobs is Gawadar.

Fuel for the fire

Pakistan has an abundance in natural resources, the issue here is that we are not utilizing them properly as no one is on the same page. Greed and individualism is eating our society. If the government and people tap these needed resources a lot of industries can be set up thus creating jobs. Due to a lack of resources, basic necessities like electricity is not supplied as per the demand. This in turn keeps many factories either closing up or relying on expensive alternatives such as generators. Supplying proper electricity and Gas across the nation would also get the ball rolling in reducing unemployment.

Six Causes Of Unemployment In Pakistan in 2018

Educate to proliferate

The education system of Pakistan has always been in a bad state. The Urban population may be benefiting from the private school systems, but the government schools are far from the needed standards. The education board needs to implement certain standards across the country. A proper education system would lead to people from Rural and Urban population to gain proper education. If the system of Public schools is improved, the literacy rate and unemployment rate both would improve.

Disrupt the Corrupt

It’s no secret that are society is knee deep in corruption. Corruption is not just on the accounts of politicians and the wealthy business men, everyone plays some part. A politician swindling money, a taxpayer lying on his or her documents, or an employee accepting a bribe all fall under the same heading.  It’s simple, people are reluctant to pay taxes as they feel politicians would fill their pockets and it would go to waste. Politicians may reserve some of the public money for themselves and invest it in offshore companies to  avoid a trail. End of the day the money meant for the public does not exist. Proper regulations need to be placed so that people pay their taxes and those taxes are put to good use  The taxes need to be put in improving the infrastructure, which in turn would create a lot of jobs.

Merit over Nepotism

Nepotism in essence is favoritism towards an individual because of his or her legacy or because of his or her status. Due to people being chosen because of their references, many individuals who shine on merits are left behind. The only prerequisite to avail a job should be Merit and Nepotism should not leverage an application. The deserving should get the role in question, rather than the person who has a better connection. If this practice is applied unanimously, a lot of rightful people would get the jobs they deserve.  This in turn would increase productivity and create more jobs.

The Bottom Line

Overall the situation does seem better for people, but a lot of work needs to be done to create a stable environment for all individuals.  Many people who end up jobless but encompass the right set of skill sets and talent; end up becoming entrepreneurs. These entrepreneurs may succeed and eventually create jobs. There are many options online which we can opt for to start earning. I would be discussing few of the potential many options in this blog. The bottom line is such that there are many causes of Unemployment in Pakistan (Six Causes Of Unemployment In Pakistan), but some of the solutions to decrease the unemployment rate are:

  1. Educate the Rural as well as Urban Population on Family Planning and Safe Sex to reduce the Population growth rate.
  2. Make the law and order conditions better to increase investments from locals and foreigners
  3. Make the Public school system up to the mark as per the required international standards.
  4. Utilize our natural resources properly to create jobs and provide the people with proper electricity and Gas.
  5. Say no to corruption and use the public money for the public’s betterment.
  6. Merits should speak louder than connections when it comes to seeking potential candidates for jobs.
  7. Create unemployment benefits for those actively seeking work, to assure they don’t go the wrong way.
  8. Create more Human Resources departments.
  9. Decide on a retirement age and make sure that all companies adhere to a proper pension for the people retiring.


Hadzic, T. (2017, November 8). 15 Countries with the Lowest Unemployment Rates in the World in 2017. Retrieved from Insider Monkey:

Pakistan Population. (2017). Retrieved from Worldometers:

Pakistan Unemployment Rate. (2017). Retrieved from Trading Economics:






There are 2 comments

  1. Sumaira Khan

    Asalam-o-Alaikum . I read your blog six causes of unemployment but will you please help me in giving ideas for finishing the youth unemployment rate in Pakistan as i have presentation on it in Hult Prize in Islamabad infront of youth . Tell me or share something that can help those youth and they can reduce this unemployment rate . i will be highly thankful to you .

    Regards: Sumaira khan

    November 6, 2018, 5:11 pm