Pakistan's Labor Market Challenges and Population Dynamics

Pakistan, a country in South Asia, is currently facing challenges in its labor market. According to the latest Economic Survey 2023-24, the unemployment rate stands at 6.3%, affecting 4.51 million individuals who are seeking employment opportunities. This data is based on the 2020-21 Labour Force Surveys, which indicate a total labor force of 71.76 million, with a significant portion residing in rural areas.

The employment landscape in Pakistan is evolving, with a noticeable transition from agriculture to industry and services. The services sector has emerged as the largest employer, absorbing 37.2% of the workforce in the past year. However, concerns persist regarding youth unemployment, particularly among individuals aged 15-24, where the rate is as high as 11.1%. Female unemployment rates, especially among the youth, also present a pressing issue that needs attention.

Moreover, over 13.53 million Pakistanis are currently employed abroad in various countries, with a substantial number working in Gulf Cooperation Council nations like Saudi Arabia and the UAE. This overseas employment plays a vital role in Pakistan's economy through remittances, contributing significantly to the country's financial well-being. In 2023, the registration of workers for overseas jobs witnessed a 4% increase compared to the previous year, as reported by the Bureau of Emigration and Overseas Employment and the Overseas Employment Corporation.

Shifting focus to Pakistan's population dynamics, the country's growth rate stands at 2.55%, with urban areas experiencing a higher rate of 3.65% compared to rural regions at 1.90%. This demographic trend has led to an increase in population density, rising from 260.88 persons per square kilometer in 2017 to 303 in 2023. Additionally, the average household size has slightly decreased over the years, reflecting changes in family structures and living arrangements.

The statistics on unemployment and population in Pakistan provide valuable insights into the country's economic and social landscape. While challenges exist, such as high youth and female unemployment rates, the growth of the services sector and overseas employment opportunities offer hope for a brighter future. As Pakistan continues to navigate these dynamics, addressing unemployment issues and managing population growth will be crucial for sustainable development and prosperity.