UNEMPLOYMENT IN PAKISTAN

Definition of unemployment

We might have listen to about unemployment from our friend and relative might not have got the job even after being effectively educated.

To most, the word unemployed means remain without work. Unemployment basically is define as ” The condition of having no job or being out of work or proportion of people which are able to work actively searching jobs but they are unable to find it.”

IMF report (1998) define as:-

‘unemployment is measured annually as percentage of labor force that can’t find a job’. Unemployment also refers to the number or proportion of people in the working population that are unemployed.

Unemployment is basically a persistent challenge that is facing Pakistan since its inception and it   is one of the biggest problems of Pakistan.. An unemployed person is one who is an active member of the labor force and he is able to and looks for work, but is unable to find work during a precise reference period that might be a week or a month or a year.

According to current situation in Pakistan more than 30 lack people are unemployed and unemployment ratio is more than 12%.

The unemployment issue of Pakistan is increasing more in rural areas where almost 70% of the Population is living. There livelihoods depend on rural economy. They have lack of basic necessities such as primary health care, education, job opportunities, social services and some other issues due to unemployment increasing day by day. . The biggest reason of unemployment in Pakistan is concerned with the backwardness of agriculture sector. Agriculture sector is the largest sector of Pakistan economy it contributes 20.9% to GDP and 44% people directly or indirectly get jobs opportunities from this sector. Unemployment in agriculture sector arises from two sides.

First reasons are due to the adoption of latest machinery and capital intensive technology. Due to this reasons, demand for labor has been decreased. Second is the backwardness of agriculture sector. There is less availability of quality seeds, pesticides, and fertilizers, absence of land reforms and lack of agriculture education. Due to all these factors agriculture sector is not expanding or flourishing and due to these problems there is general and disguised unemployment in the economy.

Industrial sector is the second largest sector of our economy and it contributes 19% to national income of economy. A large number of labor employed by this sectors. But due to backwardness in industrial sectors a small number of people are employing. Due to electricity breakdown it already established industry is deteriorating, resulting is the prevailing unemployment ratio. In Pakistan education system is very defective. There is no proper educational planning. There is lack of technical and vocational institutions. Public attitude towards education is no serious, they want to get their degrees in general and arts subjects. Nobody is ready to set up his own business without technical education. In Pakistan majority of the businessmen are less educated and unskilled. They don’t have proper knowledge and they don’t know how to run their businesses properly and effectively. So they become bankrupt in a country. This factor and reasons generates unemployment on a massive level.

Increase in unemployment can be stated the change in demographic structure, women participation in labor force, immigration from rural areas to town, economic crises in a society and technological unemployment. On the other hand unemployment is not only an economic problem but it is also a social problem and that may cause crimes and deform social fabric. The struggle against unemployment is not limited the unemployment rate in the economy but also to take a consideration into the relationship with macro economic variables such as we can take the example of economic growth, exchange rate and inflation natural unemployment In the economy can be summarized as change in demographic structure, oil crises, increase in Capitan intensive production, labor unions, loss of power, increase in productivity, productive growth, decrease in wages rise, firm structure .In the past 20year the rapid and wide spread diffusion of computer information technology at a work place is one of the most important and notable trend. This development has prompted both a great concern that its effects the employment and enhance the job skill requirement that increase the economic inequality and great deal of excitement that information technology serve as engine of economic growth.

Types of unemployment

Comprise studied the meaning of unemployment, now let us talk about the different types of unemployment. Generally, unemployment can be separated into two types: voluntary, and unemployment.

Voluntary and involuntary unemployment

Voluntary unemployment occur due to motive that are explicit to an individual, whereas involuntary unemployment is foundation by a large number of socio-economic factors for example level and aggregate demand, structure of the market, government intervention, and so on.

Therefore, the Unemployment has different kinds depending on the nature, origin, and period of unemployment. Let us now talk about various types of unemployment. Unemployment is broadly classified in following group.

There are different types of unemployment we can  them in five categories such as frictional unemployment, structural unemployment, cyclical unemployment, classical unemployment and demand deficit etc.

Frictional unemployment

Frictional unemployment includes those people that are unable to do work plus the stock of people moving between jobs. it occurs because of a discrepancy in the timing due to this people leave one job and starts job. Frictional unemployment pass on to a conversion period of looking for a new job, for different reason, such as looking for a better job, being passionate from a current job, or having voluntarily quit a current job. The period of time between the current to a new job is referred to known as frictional unemployment.

Seasonal unemployment

The other type of unemployment is Seasonal unemployment that is a type of frictional unemployment, it occurs in a definite activities or profession which is characterized by  work. An example of seasonal unemployment is the joblessness through non-cultivation in rural areas.

Reality im Pakistan

Structural unemployment

Structural unemployment occurs when there is the long-term changes happened in the patterns of production and demand within an economy This kind of unemployment takes place when there is several consumer demand and technology in the economy. For example, when computers were initiate many workers were displacing because of a divergence between the accessible skills of the workers and the obligation of the job. Though jobs were accessible, there was a demand for a new category of skill and qualification. So, persons with old skills did not get employment in the changed economic domination and stay unemployed. This is known a structural unemployment.