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UNEMPLOYMENT
Workless people can always be dangerous to a country’s security.
• The frustrated youth of the country is falling a prey to drug-addiction, violence, theft, and many other social evils. Smugglers, drug-traffickers and terrorists are engaging them in heinous activities.
• A Working Definition of Unemployment:
“People able, available and willing to find work and actively seeking work – but not employed”
UNEMPLOYMENT IN PAKISTAN
Unemployment is one of the major issues confronted by our youth today. Every year many new graduates are added into the labor force but few of them get very good jobs; some others get a reasonable one but many keep on looking for jobs for a long time.
Recently, the unemployment rate of Pakistan increased to 6.5% and so it can be said that one out of every 10 people of the country are suffering from unemployment.
The unemployment rate in urban areas of Pakistan increased by 2% to 10.1%, whereas, the unemployment rate in rural areas increased from 4.3% to 5%.
According to Economic Survey of 2010-11, population of Pakistan is 177.1 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 %.
You will find so many graduates, master students, engineers and people of every profession being wasted due to unstable employment system in Pakistan
Not only educated people of Pakistan, but also the labor class is going through a rough phase and their daily life has become a living hell for them
UNEMPLOYMENT RATE IN PAKISTAN
1998 71999 62000 6.32001 7.82003 7.82004 7.72005 8.32006 6.62007 6.52008 7.42009 142010 152011 5.62012 6.5
SUICIDES CASES BY UNEMPLOYMENT
• Over the same period, 1,160 cases of attempted suicide were reported. According to the report;
469 people committed suicide for domestic
reasons
136 because they were unemployed
193 over disputes within families
74 over the rejection of marriage proposals
85 after fights with parents
97 because of poverty
159 for other reasons.
MAJOR CAUSES OF UNEMPLOYMENT IN PAKISTAN
• The causes are endless and countless. But the major causes of unemployment in Pakistan are as follows:-
1. Economic Causes2. Social Causes3. Financial Causes
ECONOMIC CAUSES
• Low Industrial Growth RateLow industrial growth rate is 1.7 % in Pakistan. Number of industries is not increasing in Pakistan. Lack of industries means less opportunities of employment.
• Mechanization of AgricultureDue to mechanization of agriculture there is less use of labor in agricultural sector. These unemployed persons move to cities to find jobs at less wage rate. Accordingly, use of modern techniques in agricultural sector is also a further cause of unemployment and under employment
• Reduction in Foreign Employment Due to illiteracy, ill training and lack of skill & efficiency demand for our labor in foreign market is decreasing. It also creates problem of unemployment.
• Use of Advanced TechnologyA poor country uses backward techniques of production and labor intensive technologies. But when it uses the advanced technology there spread more unemployment in the country
SOCIAL CAUSES
• High Population Growth RateThe population of Pakistan is increasing at a rate of 2.1 %. Due to this high rate about two million people enter into the labor market each year.
• Illiteracy & LiteracyIlliteracy and literacy both are the causes of unemployment in Pakistan. Due to Illiteracy people are not able to work and they remain unemployed. On the other hand number of educated is increasing annually but government is unable to create employment opportunities e.g., students of B. Com. are increasing at very fast speed but they cannot find jobs and admissions for higher education. Rate of illiteracy in Pakistan is 42.3 %.
• Follow New Trend of EducationStudents are that whenever there comes a new trend or a new technology, then everyone follows to study that specific subject only rather than differentiating themselves they all follow the same pattern. Later, when there are only 5-10 vacancies of that specific field the number of graduates of that field are in thousands.
• Under Govt. Educational Institutions
Around 80% of the educational institutions in Pakistan are under government. So, our educational and technical institutions do not equip the students properly to suit international and at times even local markets.
• Lack of Confidence in Educated PersonsA student may have a master’s degree ,but when he walks into an office for his interview, he lacks the confidence to carry himself for a formal conversation and in the end so many students of this type are rejected and left unemployed!
Lack of Technical EducationToday, literacy rate is 57.7 %. Number of students of every field especially of commerce, are so large but employment opportunities for them are few.
Rural-Urban MigrationPakistan an agricultural based economy, is currently undergoing the process of mechanization. Labor is being replaced by machines, creating unemployment in rural areas.
Political Instability
There is political instability in Pakistan, which creates less attraction for foreign investment. Due to political instability investor hesitates to invest.
• Afghan RefugeesThey create a bad effect on our labor market. They are ready to work more at less wage rate.
• Nepotism and FavoritismIt means selection according to relation, language, caste, sects not according to ability. Here deserving candidates do not get jobs and remain unemployed or under employed.
• Re-employmentRe-employment of higher rank civil and especially armed forces officers has decline the jobs for qualified young men in Pakistan
• Law and order situation of KarachiKarachi is the biggest and an ideal place in terms of industrial base of Pakistan. Sadly, investors are not willing to invest in Karachi due to violence that has taken over Karachi in the past few years
FINANCIAL CAUSES
• Lack of Credit FacilitiesIt is so difficult to manage the personal business and self-employment due to absence of easy credit facilities. Accordingly, shortage of credit facilities is also a main cause of unemployment
• Deficiency of CapitalThere is shortage of capital that leads to low level of saving and investment in Pakistan. It results in low rate of capital formation and caused in unemployment
STEPS OF GOVERNMENT OF PAKISTAN AGAINST UNEMPLOYMENT
• SMEDA (SMALL AND MEDIUM ENTERPRISES DEVELOPMENT) SMEDA provides loans to the deserving persons to establishment of Small and Medium industries.
• SKILL DEVELOPMENT COUNCILS Skill Development Council is play vital rule to educate the people who desired to improved their technical qualification in industrial and other organizations.
• OVERSEAS EMPLOYMENT CORPORATION (OEC)Overseas Employment Corporation (OEC)was established in 1976 by Govt. of Pakistan and is only employment promotion agency operating in public sector. During 37 years, sending more than 135,000 workers to 55 different countries across the world.
PRIME MINISTER’S YOUTH PROGRAMThe following Six Schemes are being launched
Prime Minister’s Scheme Loan per person
Candidates
Budg All
PM’s Qarz-e-Hasna Scheme 25,000 250,000 3.5 Billion
PM’s Small Business Loan Scheme 0.5 to 2.0 M 100,000 5 Billion
PM’s Youth Skill Development Scheme
3,000/six months
25,000 800 M
PM’s Scheme for provision of Laptop 40,000/laptop
100,000 4.0 Billion
PM’s Scheme for Reimbursement of Fee of Students from the Less Developed Areas
40,000 Tuition fee / year
30,000 1.2 Billion
NATIONAL INTERNSHIP PROGRAM (NIP)The educated youth of Federal Regions (ICT, FATA, GILGIT, BALTISTAN, and AJK), along with monthly stipend of Rs. 10,000/-.
RECOMMENDATIONS
• Establishment of Employment OfficesThere is not any single office for the information about employment opportunities in Pakistan. More and more employment offices should be established these would cause in reduction in unemployment.
• Population ControlFast growth rate of population should be controlled. Due to population control there will be more employment opportunities and reduction in unemployment
• Growth of Industrial SectorGovernment should provide basic infrastructure to established industries is rural areas. Growth of industrial sector is needed to reduce unemployment.
• Reduction in Retirement PeriodRetirement age is 60 years in Pakistan. It should be reduce to 55 years to provide more employment opportunities
. • Subsidies to Private Sector
Stable government is required to subsidize the private sector. Government should help the private sector to development. It will create more employment chances.
• Job on MeritGovernment should eliminate the nepotism and favoritism. Employment opportunities should be provided in accordance to skill and ability.
• Economic GrowthGovt. should make efforts to push economic growth process. For this purpose Economic Revival Package should announce for the revival of industries sector, to stimulate production and investment
• Fiscal and Monitory PoliciesBeside this a number of fiscal and monetary measures should take to attract industrialists and particularly foreign investment.
• Export more than importGovernment needs to motivate people to export more than import through broadening the tax base and by lowering down the tariff plans.
• Foreign Investment
The government need to make such policies that attracts foreign investment in our country which will lead to more job opportunities.
CONCLUSION
In conclusion, another erupting challenge standing before Pakistan is wide-spread unemployment. Thousands of educated graduates are jobless. Hundreds of thousands of unemployed workers are forced to lead their lives below their status. Large scale unemployment has serious effects on the country’s production also. Moreover, the country’s population has drastically increased during recent years. Therefore, every step taken to improve the living standard of common man proves to be futile and ineffective.
We conclude that there are two major elements, which can reduce the unemployment i. e., use of labor intensive industries and adoption of self-reliance policy. Progress and prosperity is impossible without the reduction in unemployment.
THANKS
