UNEMPLOYMENT IN PAKISTAN
The term in unemployment means, ” A person is unemployed if he or she did not worked during the preceding week but made some effort to find working the past four weeks”. Unemployment is one of the major problems of Pakistan. The level of unemployment is moving up. The cause of unemployment in society was very important topic. Unemployment is political and social issue in all the countries. Unemployment is also depending on economic condition of our country. Now a day’s professional and technical education necessary for our society. Continuous efforts are required to get rid of this problem. Money should not be allowed to concentrate in a few hands. Agricultural produce should be increased. Continuous efforts are required to get rid of unemployment. Large scale smuggling which has flooded the market with cheaper goods poses a serious threat to the development of local industry. The problem of unemployment in Pakistan is that whenever a new technology comes as software or hardware then all the people starts studying about that.
Unemployment is an economic term. Employment means occupation. To be engaged in doing sometimes productive is to be employed. Begging is no employment because it does not contribute to production though it may provide livelihood to the beggars. Unemployment means the absence of employment .when persons are out of work, they are called unemployed. The socio economic system of the country and institutions has failed to provide employment to the increasing labor force. The rate of expansion in industrial sector is very slow. The increasing labor force has not been absorbed. The increasing output of general education institutions is the major cause of educated young men’s unemployment. Unemployment is world-wide problem. Even the developed countries like America, France and Britain are faced with this problem. In Pakistan, unemployment is a very serious problem. It is increasing day by day among the educated and the uneducated people. Even the highly qualified persons are wandering and laborers are unemployment both in villages and cities. Sometimes, they find some temporary job for a few days and then, they are gain jobless. Unemployment is one of the big and vital problems in all over the world. It is the common issue in developed as well as underdeveloped countries. It is the consistent problem facing by all industrially advance and as well as poor countries. Unemployment occurs when people are without jobs. Unemployment means people are able to work and actively finding job but fail to get a job.
Technical, professional and vocational institutions are limited in number. Nationalization of industrial units very badly affected the investment industrial sector. The private investor shifted their capital to other countries. Employment in the private sector absolutely stopped for many years. The higher growth rate of population is the major causes of unemployment. The population has exceeded the optimum level. The resources of the country are limited. Employment cannot be provided to the increasing labor force. The cottage industries in rural areas had been faded out by the machine made goods. The artisans have been rendered unemployed. Educated young man like white collar jobs. They do not like to perform manual labor. The higher age of retirement in government services has blocked the employment of educated young men. Reemployment of civil and military high ranking offices in government corporations and agencies deprives the qualified men from employment. The unemployment rate is a sensitive indicator of conditions in labor market unemployment is often associated with improving wages and working conditions as well as employers compete to attract retain workers.
Unemployment breeds many social evils in the society:
Unemployment is social evil of far –reaching consequences. It spells starvation, diseases and death on its victims. They have no education, no culture, and therefore, no concern for right and wrong, good and evil. In a society where population is unemployed on a large scale, dishonesty, corruption, crime, sin and vices of all kinds prevail. Politically unemployment breeds discontent in people. Revolutions and mob violence are the results of unemployment. Votes are bought and sold. Merit is not observed. The deserving persons remain jobless while the understanding persons get job through political influence. The unemployment persons resort to negative means to get wealth. They become dacoits. They may involve themselves in murdering innocent people for the sake of a few rupees. They play in the hands of narcotic traffickers, smugglers and professional terrorists. Thus, they cause horror chaos in the society. Today’s if a poor received a message from an unknown number that you can get 20,000 rupees from Benazir income Support. You will call this number for further information. Obviously the poor people happy and try best to get this amount. And they face many problems.
There are many causes of unemployment in Pakistan but four of them are very important.
The most important of these causes is a nonstop increasing population. Deteriorating law and order situation has slowed down the tempo of economic activity. Karachi is the biggest industrial base of our country. But investors are reluctant to invest there because of continuous unrest and violence. Our country is not much developed industry. We have only a few mills and factories. In our distant villages, there are no mills and factories. We cannot provide jobs to all jobless persons in mills and factories.
Wrong system of education:
Our education system does not fulfill the needs of the present age. It simply produces clerks. Pakistan is an advancing country and needs skilled persons in every field of life. Our young educated persons hate manual work. They always dream of high status in the society. Our educational system is also responsible for the high unemployment srate among the educated youth. They want to get only some white collar jobs.
Unjust distribution of wealth:
In our country a few privileged persons are keeping all the key industries to them. If work and leisure are equally distributed, all persons will have enough of work and enough of leisure. But, unfortunately the educated young men and common men have neither the capital nor the opportunities to try their luck in business. Unnecessary and frequent strikes in the factories have compelled the owners to go for automation and such technology as requires less manpower.
Lack of industry:
In Pakistan, there is a rapid increase in population the birth rate is higher than the death rate. If population goes on increase at the present rate, all efforts of the government to provide jobs to the unemployment will be fruitless. The resources of the country are not sufficient to maintain such a large population jobless persons are more and the jobs are few. The result is unemployment. Lack of infrastructure facilities, especially in the field of energy, telecommunication and transportation also prevent the industrialist from setting up new industries. Unemployed people should be ready to all sorts of work. The students who cannot get proper jobs after their studies are over should be ready to work manually in factories and on farms.
Unemployment is becoming the most important and critical issue in Pakistan. Dramatic increase in growth of high level of unemployment is big headache for less-developed as well as developed countries. High level of unemployment can create number of social problem. According to Economic Survey of 2010-11, population of Pakistan is 177.7 million. Total labor force is about 54.92 million out of which 51.87 million is employed and remaining 3.05 million is unemployed. Rate of male unemployment is 5.6% and female unemployment is 9.3 %. According to Census 1998, youth under the age of 29 constitute 70% of the total population. As much as 64.87% young population recites in rural areas and 35.13% in urban area. The census of 1998 counted 56 million children under the age of 15. There were another 13 million adolescents between the age of 15, 19 and 11 million youth age of between 20-24 years.
One of the primary aims of any government should be the elimination of unemployment. Although achieving zero level unemployment is not only “highly impossible” but also undesirable at various levels to check the inflationary trend. It is imperative that all governmental policies need to be directed towards achieving this goal. Identifying the problem is the first step towards successfully solving it. However, a look at officially compiled statistics shows that unemployment level in Pakistan is much higher than that portrayed by the government. This is the primarily due to the criteria used for the measurements of labor force, employment and unemployment. Unemployment is one of the common issues in all over the world. It is becoming a major problem for less developed and also for developed countries. It is very consistent problem and for many countries it remains difficult to manage.
In order to cope with this problem of unemployment, the government is taking some steps but they are insufficient. The system of education should be modernized education should be imparted to our boys and girls. So, that they may start their own business privately. Interest-free loans should be provided to them for setting up their business. A network of industries should be extended to the rural areas. So, that the jobless persons may be absorbed in them. The idea of family planning should be controlled. Merit should be observed. So, that the young educated persons may not suffer frustration. Birth rate of country must be kept with in the responsible limits. Education must be constructive and beneficial, so that the government should open different institutes for technical and professional educational. Selection of candidate must be fair. Working environment must be pleasant for encouraging females. Job level and salary must be according to the qualification. Bonus must be given on good performance in order to encourage the workers. Government should be provide job opportunities to skill-persons at small level. Government should make efforts to pus economics growth process. For this purpose economics revival package should announce for the revival of industries sector, to stimulate production and investment. Government should announce a package for the development of agriculture sector. Besides this a number of fiscal and monetary measures should take to attract industrialists and particularly foreign investment. Small (cottage) industries should be set up in villages. Increased industrial and agricultural production will cause an increase in the exports and trade of the country. A large number of unemployed people will get busy with export and trade.
- Aleksander, B., Guido Menzio, & Wright, R. (2009). Inflation and Unemployment in the Long Run.
- Bhorat, H. (2007). Unemployment in South Africa: Descriptors and Determinants. Washington DC.: World Bank.
- Blomstrom, M., Fors, G., & Lipsey, R. E. (1997). Foreign Direct Investment and Employment: Home Country Experience in the United States and Sweden. The Economic Journal, 107 1787-1797.
- (1993). Direct Foreign Investment, Crowding Out, and Underemployment in the Dualistic Economy. Oxford Economic Papers, 45(4), 639-667.
- Chang, S.-C. (2006). The dynamic interactions among foreign direct investment, economic growth, exports and unemployment: evidence from Taiwan. Economic Change(38), 235-256.
- Elmeskov, J., Martin, J. P., & Scarpetta, S. (1998). Unemployment and Labor Market Rigidities in OECD Countries – The Impact of Taxes. Swedish Economic Policy Review, 5(2), 207-258.
- Foley, M. C. (1997). Determinants of Unemployment in Russia University. Center Discussion Paper. Yale. Kalim, R. (2003). Population and Unemployment: A Dilemma to Resolve. The IUP Journal of Applied Economics, 2(3), 7-15.
- Kingdon, G., & Knight, J. (2001). Race and the Incidence of Unemployment in South Africa. Centre for the Study of African Economies Working Papers. Kupets, O. V. (2005). Determinants of unemployment duration in Ukraine-Moscow. : EERC.” Economics Education and Research Consortium.
- Lippman, S., & McCall, J. (1976). The Economics of Job Search: A Survey (Vol. 14, pp. 155-189): Economic Inquiry.
- .M.Rafiq, Ahmad, I., ullah, A., & Khan, Z. (2009). DETERMINANTS OF UNEMPLOYMENT: A CASESTUDY OF PAKISTAN ECONOMY (1998-2008)Abasyn Journal of Social Sciences, 3(1).
- Marika Karanassou, Hector Sala, & Salvador, P. F. (2007). Capital Accumulation and Unemployment: Capital Accumulation and Unemployment: new insights on the Nordic, experience. Economics review, 90(2), 1223-1322.
- Mortensen, D. (1970). Job Search, the Duration of Unemployment and the Phillips Curve. American Economic Review, 30(847-862.
- Ozturk, L., & Akhtar, I. (2009). Can Unemployment be Cured by Economic Growth and Foreign Direct Investment in TURKEY? International Research Journal of Finance and Economics, 27, 1450-2887.
- Rizvi, S. Z. A., & Nishat, D. M. (2009). The Impact of Foreign Direct Investment on Employment Opportunities: Panel Data Analysis,Empirical Evidence from Pakistan, India and China.
- Hussain, Siddiqi, M. W., & Iqbal, A. (2010). A Coherent Relationship between Economic Growth and Unemployment: An Empirical Evidence from Pakistan. International Journal of Human and Social Sciences, 5(5). United, N., & Population Division. (2010). World Population Prospects Walterskirchen, E. (2008). THE RELATIONSHIP BETWEEN GROWTH, EMPLOYMENT ANDUNEMPLOYMENT IN THE EU. Vienna: Austrian Institute of Economic Research.