Unemployment in Pakistan, few Reasons !!
Admin 17 July 2019 0 comments
The unemployment in Pakistan is very high and a major cause for some illegal activities to take place in our country. Unemployment in Pakistan has decreased from 7.7% from 2003 to 5.2% in 2007 but it increased in 2013-14 to a huge percentage of 6.0% and is now hanging at 5.9% from 2015 till now.
Female unemployment has taken a rise of 9.0% and the participation rate of the female has been 22% while it is falling but still, it is higher than expected and with the rise of dollar rate and with the taxes and with the expensiveness (excess price) this percent is far very high.
The foreigners provide any kind of job to its young generation but in Pakistan, the young generation mainly focuses on either engineering or medical which later on results in unemployment due to many people already in this field. The unemployment in Pakistan is one of those problems which needs to be solved as soon as possible because due to the unemployment rise in the crime rate is to be expected at any time.
The main causes of unemployment are:
Poor Education System:
Pakistan has one of the lowest literacy rates and the second largest out of school population (5.1 million children) after Nigeria. KPK having 53.3% literacy rate, Punjab 64.72%, Sindh 62.2% and Balochistan with a 55.5% lower rate. With the poor education system, there would be high chances of unemployment as youth won't know what to choose for the future goals. As Pakistan provides limited fields to study than their jobs are also limited making the job available for limited people. On one seat available for a job there would be 100 plus applications submitted as one would be selected and the others would have to do something else for themselves.
Education is a must thing and the youth should be properly educated about what to choose for life and employment is not all about choosing medical and engineering. There are many out there unemployed with an engineering degree or medical degree so our education system should be perfected.
Growth In Population:
The population of Pakistan is very large and it’s increasing by a devastating amount of 2.2% per annum. Pakistan has achieved the sixth position for being the most populated with a population exceeding 197 million (212,742,631 people). One of the main reasons for unemployment, with the increase in population there would be more people for a job so limited jobs for limited people and the left out would be unemployed. Our growth rate is a devastating one, there are many reasons for this increase in population e.g. lack of awareness etc. It is not possible for the government to employ such a huge populace.
High age of retirement:
Another reason for unemployment is the high age of retirement that is 60 years. With the high age factor, there would be fewer opportunities provided for a lot of deserving people. The government is held responsible for this factor. The youth, as well as those who have graduated and higher degree holders, are in wait of these jobs.
Due to terrorism, the foreign investors fear to invest in our country and as Karachi being the business center (business hub) the terrorism rate is higher there that is target killing, murder, and illegal activities. Though these have been reduced still street crime is still there which is making life harder for those who are residing in Karachi and foreigners who visit are targeted. Foreign investors have a thinking of being a target every time and that their investment would be at a loss if they are targeted so they invest less and fewer industries meaning fewer chances and high risks of unemployment.
Lack of industries:
Another reason for unemployment is that the number of industries is not increasing in Pakistan. The shortage of capital is an important cause of unemployment in developing countries like Pakistan. Low savings leads to low investment, which ultimately results in low capital formation. When the rate of capital accumulation is low, unemployment will be the natural outcome of the situation.