Unemployment Rate in Pakistan Climbs to 7.1%

Pakistan’s unemployment rate has risen to 7.1% in the past four years, according to the latest data released by the Pakistan Bureau of Statistics (PBS). This marks an increase from the 6.3% recorded in the 2020-21 Labor Force Survey.

Pressure on Pakistan’s Job Market

The data, which was collected online for the first time, sheds light on the growing pressure on the country’s job market. Despite a significant increase in average wages, the jobless rate has risen, reflecting mounting challenges in securing employment. The survey estimates that around 8 million Pakistanis are currently unemployed, marking a 0.8 percentage point rise in the jobless rate over the past five years.

Labor Force and Employment Breakdown

With a total population of 241.5 million, more than 77.2 million people are part of the labor force. Around 43% of the population is of working age, while 53.8% remains inactive. The services sector continues to be the largest employer in Pakistan, providing jobs to 41.7% of the workforce, which translates to approximately 31.8 million people. The agricultural sector follows with 33.1% of the workforce, or 25.5 million people, while industry accounts for 25.7%, employing about 19.9 million individuals.

Growth in Employment, Despite Decline in Agriculture

The survey, which covers individuals aged 10 and above, shows that Pakistan’s unemployment rate stood at 6.9% in 2018-19. Over the last four years, nearly 10 million people have found employment annually, with both male and female employment rates rising. However, the report highlights a notable decline in the proportion of workers in the agricultural sector.

Increase in Average Wages, but Wage Disparities Persist

The survey reveals a sharp rise in average monthly wages, now standing at Rs. 39,042, up by Rs. 15,014 from Rs. 24,028 in 2020-21. Despite this increase, there are still significant wage disparities. On average, men earn Rs. 39,302 per month, while women earn Rs. 37,347.

Formal vs. Informal Employment

The formal sector now accounts for 27.9% of the workforce, while the informal sector remains dominant, employing 72.1% of workers. Among informal sector workers, 73% are men, and 66% are women, showing gender disparities within this sector as well.

Government Plans to Meet IMF Requirements

Chief Statistician Dr. Naeem-ul-Zafar stated that the government is on track to meet key International Monetary Fund (IMF) requirements by the end of 2025. The labor force survey, livestock census, and an upcoming household income survey are crucial components of the ongoing reform agenda.