labor Force Pakistan

8/7/2019 labor Force Pakistan

1/21

235

Population, Labour Force

and Employment16

Pakistanistheworldssixthmostpopulouscountry1.Withanestimatedpopulationof169.9millionasat

endJune 2009, and an annual growth rate (revised) of 2.05 percent, it is expected that Pakistan will

becomethefourthlargestnationonearthinpopulationtermsby2050(Fig16.1).

Withamedianageofaround20years,Pakistanisalsoayoungcountry.Itisestimatedthatthereare

currentlyapproximately104millionPakistanisbelowtheageof30years.Totalworkingagepopulation

is121.01million,withthesizeoftheemployedlabourforceestimatedat52.71millionasof200809.

Table16.1:SelectedDemographicIndicators

2007 2008 2009 2010

TotalPopulation(million) 162.91 166.41 169.94 173.51

UrbanPopulation(million) 56.82 58.74 60.87 63.05

RuralPopulation(million) 106.09 107.67 109.07 110.46

TotalFertilityRate(TFR) 3.9 3.8 3.7 3.6

CrudeBirthRate(PerThousand) 29.1 28.7 28.4 28.0

CrudeDeathRate(PerThousand) 7.9 7.7 7.6 7.4

PopulationGrowthRate(Percent) 2.12 2.10 2.08 2.05

LifeExpectancy(Years) 63.4 63.7 64.1 64.5

Male 62.7 63 63.3 63.6

Female 64.1 64.5 65.0 65.4

Source:SubGroupIIonPopulationProjectionsforthe10th

FiveYearPeoplesPlan201015.

1Pakistanspopulationestimateshaveundergonearecentrevision.Latestestimatesarebasedonrecentprojectionscarried

outbytheSubGroup IIonPopulationProjectionsforthe10th

FiveYearPeoplesPlan201015.Thesewereofficiallyreleased

aftertheStatisticalportionoftheEconomicSurveywenttoprint.Therefore,thepopulationnumbersusedinthischapterwill

not tally with the Federal Bureau of Statistics estimates used to calculate percapita income in Table 1.5 of the Statistical

Appendix.

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

CHINA INDIA USA INDONESIA BRAZIL PAKISTAN

Thousands

Fig1:Actualversusprojectedpopulation,selectedcountries

ActualPopulation(2008)

ProjectedPopulation(2050)

Source:World Bank


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EconomicSurvey200910

236

Theproportionofpopulationresidinginurbancentreshasrisento36%.Since1950,itisestimatedthat

Pakistan'surbanpopulationhasexpandedoversevenfold.

Despite a gradual decline in the Total Fertility Rate (TFR), currently close to 4, Pakistan has been a

laggardinachievingabreakthroughonthisfront.

TheleveloffertilityinPakistanremainedconstantat6.8childrenperwomanfrom1961through1987,

population grew as life expectancy increased and fertility rate remained constant. Growth rate of

populationdeclinedduring19902000becausefertilityratedeclinedrapidlyduringthisperiodandlife

expectancystagnated.Fertilityratebeganbydecliningrapidlyinthedecadeof19912000,fallingfrom

6.3 to 4.8 children. The fertility decline started around 1988 with a reduction of approximately 2

childrenperwoman ineachdecade through2000and lateryears, thesubsequent decade 20002009

hasseenaslowingofthefertilitytransitionwithafallfrom4.8toabout4.0.

Thedraftpopulationpolicy200910envisagestoreducefertilitylevelfrom3.56(2009)to3.1birthsper

womanbytheyear2015.Toachievethiscontraceptiveprevalenceratehasto increasefrom30to60

per cent by 2030. Lately the rise in CPR was from 12 to 28 from 1991 to 199798, an average of 2

percentayear,therisefrom1998until2004is2833,lessthanonepercentayear.

Table16.2:TOTALFERTILITYRATESCOMPARISON(19702010)

Country197075 197580 198085 198590 199095

1995

2000200005 200510

Pakistan 7.00 6.80 6.60 6.45 5.67 4.98 4.44 4

Bangladesh 6.85 6.63 5.92 4.89 3.96 3.30 2.80 2.36

India 5.26 4.89 4.50 4.15 3.86 3.46 3.11 2.76

China 4.77 2.93 2.61 2.63 2.01 1.80 1.77 1.77

Source;PopulationDivisionoftheDepartmentofEconomicandSocialAffairsofUnitedNationsSecretariat, World

PopulationProspects:The2008Revision.

(ThetableaboveissourcedfromUnitedNationsstatistics,whichmaydifferfromothercitedfiguresusedelsewhere

inthedocument).

16.1 PopulationOverview

PopulationtrendsarebestexplainedbyCBR(Crudebirthrate),andCDR(Crudedeathrate).Theseshow

the growth and decline of a population per thousand births while IMR (Infant mortality rate) is the

0

1

2

3

4

5

6

7

197075 1984 198691 199296 199700 2006 2007 2009

Fig2: TrendinTotalFertilityRateinPakistan19702009

Source:NationalInstituteofPopulationStudies(NIPS)basedonPDSSurvey2007(FBS)


3/21

Population,LabourForceandEmployment

237

number of newborns dying under a year of age divided by the number of live births during the year

times1000.Theinfantmortalityrateisalsocalledtheinfantdeathrate.Itisthenumberofdeathsthat

occurinthefirstyearoflifefor1000livebirths.Alltheseindicatorshaveimprovedifweseethepattern

from the lastcensus in1998.CBRdeclinedby20.32%,CDRby12.79%and IMRby17.73% taking the

time period from 19992009. This analysis confirms the juncture we are at, in terms of demographic

transition.FertilityandmortalitybothareonthedeclineandwehaveanopportunitytoreapthewidelyacclaimedDemographicDividend.

Growth rates in the above parameters have been fluctuating since 1950. The period of demographic

transition when dependency ratio decreased is clearly marked as the demarcation towards lower

growthratesandthatoccurredfrom1990onwards.Thegrowthrateistodeclinefurtherbringinghope

thatthedemographicdividendwouldmaterialize.

16.2 RegionalDemographics

Pakistandoeswellamongst its immediateneighbours in termsofbasicdemographicsbut thegrowth

rateofPakistanisthehighestamongthecountriesunderreview.Populationgrowthisskewedtowards

theyoungandayouthbulgehasevolvedovertime.

Table16.3:Demographicsofselectedcountries

CountryBirthsper1,000

population

Deathsper1,000

population

Population

million

Growthrate

(percent)

CHINA 12.2 6.9 1,300 0.49

PAKISTAN 25.1 7.1 177.2 1.51

BANGLADESH 23.8 9.1 158.1 1.27

INDIA 21.3 7.5 1,100 1.38

Source:USCensusBureauInternationalDatabase,2010

0

20

40

60

80

100

120

1991 1992 1993 1994 1995 1996 1997 1999 2002 2003 2004 2006 2007 2008 2009

Fig3:TRENDSINCBR,CDR&IMR

CBR

CDR

IMR

Source:PlanningandDevelopmentDivision


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Economic

238

16.3 De

Thedem

growth d

populatio

working

age popu

conseque

whenthe

declines.

capita ri

demogra

Pakistan,

finalrepl

The life

economic

income

ainvestin

impacto

force is

dividend

boom in

economic

adult pr

decline b

structure

Combinin

deliverssonperca

growth i

percenti

hasreach

percentb

Theappr

inPakista

youngag

38perce

by2050.

respectivcountry i

projected

Themedi

fertilityle

country,

is more

populatio

urvey20091

ographicDi

graphicdivi

ue to a risi

n. The popu

gegroup,a

lation surpa

nt increase

fertilityrat

During this

ses. This

hic transiti

whenfertilit

cementleve

ycle consum

implication

nd

savings

aealth.Asth

the econo

ood for the

playeda rol

Ireland in t

growth.Thi

oducers tur

efore increa

ofthepopul

g the popul

trikingresultpitaincome

the share

thelate80

edalmost5

eforestartin

ximatelythr

n,according

inthetotal

t,theyoun

Lookingatt

ly,

would

condicate an i

toincrease

an ageof t

vel,thetren

hemediana

rapid. By 20

n.

0

idend

end isaris

g share of

lation bulge

d the rate

sses that of

in theworki

fallsandth

emographic

ccurs in t

n, a situati

isinthepro

l.

ptionmodel

s. The youn

d

at

old

agerelativesize

icbehaviou

economy pr

in the "eco

e 1990s. A

s isa times

n into dep

sing again a

tion,which

ation growth

s.Whilepoprowth,this

f the popul

toearly90s

9percent in

g todecline

eepercento

to themedi

population

population

e lowandh

mprise

youncreasing m

oanadult3

epopulatio

willcontinu

gewouldbe

50 Crude bi

intherate

orking age

enters and

fgrowthof

total popul

g age ratio.

eyouthdep

opportunity

e last sta

on about t

cessoffallin

suggests th

need inve

s

there

is

a

nofeachoft

r associated

ovided it is

nomicmirac

the propor

ecificwind

ndants as

fter year 20

ouldthenh

rate and t

ulationgrowffectiscoun

tion that is

,thepropor

2006.Thes

again, ther

ldagepopul

umvariants

ithdecreasi

isexpectedt

ighvariants

g

people

by

dian age of

yearsby20

inPakistan

einfuture.I

around29y

rth rate (CB

ofeconomic

people in a

stays in the

theworking

tion, with a

This occurs

ndencyrate

,outputper

ges of the

happen in

gtowardsits

at different

tment in h

eed

for

retireseagegro

withdiffere

put to use.

le"of theE

tion of wor

wofopport

time passes

45. This inc

aveabigger

he growth r

thhasalargteractedby

economicall

ionofworki

areofwork

asonbeing

tionshare

cenarioof t

ngfertility,

ocomprise

it isbelieved

2050.

These

the populat

0(medium

started to i

thedemogr

arsby2050,

R) is expect

age groups

alth and ed

ment

incompschangei

t ages also

Ithas been

stAsianTig

ers rises or

unity,and is

. Crude dea

rease would

proportiono

ate of the

andstatistiastatistically

y active.Wi

ngagepopul

ingagepop

thegrowing

ouldincreas

eUnitedN

illshowade

nly23perc

that18and

trends

in

ferion. From a

ariant).

ncrease in t

aphictransit

comparedt

ed to almos

in a populati

ucation, adu

e

and,

againthepopulat

changes. Th

argued that

rs,andeve

falls, so do

notgoing t

h rate (CDR

be due to

felderlypop

conomically

callysignificsignificantp

h the perce

ation(1564

lationwillp

shareofold

etoalmost1

tions (2005)

cliningtrend

ntoftheco

27percent

tility

and

momedian age

e1990s an

ionfollowsa

38yearsift

t half, at 1

on have dif

lts supply la

a

requiremion,theresp

us a larger l

the demogr

in theeco

opportuniti

last foreve

) will contin

the changin

lation.

active popu

ntnegative

ositiveeffect

tage share

years)inPa

eak in2045

ragepopul

0percentby

.Theshare

.Fromthec

untryspopu

ofthepopul

rtality

rates

iof 20 years

,withdecr

slowerpath

hefertilityd

births per

erent

bour,

nt

to

ctive

bour

aphic

omic

s for

.The

ue to

age

lation

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of 52

istan

to68

ation.

2050

f the

rrent

lation

ation,

n

the

, it is

asing

inthe

cline

1000


5/21


239

Pakistanisalsoexperiencingadwindlingdependencyratio.Reduceddependencyratiosmeanthatthe

proportionofthepopulation inworkingages(1564)continuestoincreasewhilethose intheyounger

ages (014) decrease. The proportion of the elderly in the total population is projected to show a

substantial increaseafter2025.Thedecline independencyratiocanaffectpercapitaoutput through

severalintermediatechannels.First,thenumberofproducerssurpassestheconsumerssecondlysavings

increase which can make capital more available and thus relatively cheaper. It facilitates increasedsavings and investment, at both micro and macro levels. At the micro level, parents with fewer

dependentchildrencanmorereadilyaffordproductive investments,andat themacro levelresources

otherwise needed tosupportan increasingpopulation can beput to directly productive investments.

Countriescanmovefrombeingheavilydependentonexternalfinancetoapositionofrelativefinancial

selfsufficiency.

A second channel is through improving the quality of human capital. Education affects mortality and

fertilityrates.Notonlythepopulationsizebuttheagecompositionisalsoalteredbyeducation.While

currentpopulationandreproductivehealthpoliciesonlyfocusonthegapbetweentheactualandthe

desiredfamilysize, femaleeducationcanfosterastrictlyvoluntaryfertilitydecline.TheTFRisexpected

to continue to fall, reaching a near replacement level by 2050, according to the medium variant

projections[UN(2005)].

The above discourse boils down to one point: capitalizing on the demographic dividend demands

focusedpolicy.Flexiblelabourmarkets,anopeneconomy,provisionofwelfareandpolicyforthefuture

ageingpopulation,areessentialrequirementsforthedemographicdividendtomaterialize.

Source:UScensusbureauInternationalDatabase


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240

The expansive typepopulation pyramid shown above depictsa greaterpreponderanceofyoung than

old in Pakistans population. The youth bulge has been described by some as a situation in which 20

percentormoreofapopulationis intheagegroup15to24years. Itistheresultofatransitionfrom

hightolowfertilityabout15yearsearlier.Theyouthbulgeconsistsoflargenumbersofadolescentsand

young adults who were born when fertility was high followed by declining numbers of children born

afterfertilitydeclined.

16.4 AgeCompositionofPopulation

Impactofchangingagecompositionshasalreadyoccurredbecauseofthegradualfertilitydeclinethat

hasbeenunderwayinPakistansincethelate1980sandearly1990s.A wayoflookingatthe changesin

agestructureistoexaminedependencyratios,i.e.,theratioofpersonsunder15andover64topersons

between15and64.Thisratio isan indicationofhowmuchoftheyoungpopulation is increasingand

thatofold isdecreasing.Thedependencyratiohasalreadydecreasedfrom0.86to0.75 inthefifteen

yearssincefertilitybegantodeclinein1990.Theratiowillcontinuetodeclineforseveralmoreyearsto

beyond2030,mainlybecauseofthereductionsintheproportionsofthepopulationattheyoungages

of 014, and a continuing increase in the working age population. Age is the foremost criteria of

harnessingthepotentialofeconomicgrowththroughthelabourforceparticipation.

Table16.4:PopulationbyAgeGroups;Pakistan Projection(000s)

AGEGROUP 2005 2010 2015 2020 2025 2030

TOTALM+F 155,772 173,383 192,262 211,397 229,377 246,272

MALES

04 9,562 11,886 12,429 12,711 12,350 12,062

59 10,047 9,287 11,631 12,205 12,513 12,180

1014 10,130 9,936 9,210 11,554 12,133 12,446

1519 9,897 10,047 9,878 9,161 11,503 12,084

2024 7,885 9,767 9,958 9,801 9,089 11,428

2529 6,240 7,729 9,655 9,859 9,706 9,001

30

34

5,077

6,099 7,627 9,555 9,763

9,6173539 4,460 4,957 6,008 7,536 9,459 9,673

4044 4,042 4,349 4,869 5,919 7,440 9,354

4549 3,465 3,926 4,249 4,770 5,812 7,320

5054 2,796 3,331 3,795 4,120 4,637 5,664

5559 2,035 2,633 3,155 3,609 3,932 4,440

6064 1,543 1,854 2,416 2,911 3,346 3,662

6569 1,199 1,341 1,625 2,133 2,587 2,992

7074 841 973 1,100 1,346 1,782 2,179

75+ 921 1,077 1,271 1,482 1,796 2,315

TOTAL 80,140 89,190 98,874 108,670 117,849 126,417

Source: WorldBank'sWorldDevelopmentIndicators(WDI)database

16.5 PopulationProjections

Below are the population projections for Pakistan through to 2030. The term Medium variant means

thatifthepopulationincreasegoesatabalancedpacethisscenariowouldunfold,Highandlowvariant

mean ifthechangeoccursatahighfertilityora lowfertilitypace.Constant fertilityvariantdescribes

stablefertilitychange.


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241

Table16.5:PakistanPopulation20102030 (Thousand)

YearMedium

variant

High

variant

Low

variant

Constant

fertility

variant

2010 184753 184753 184753 184753

2015

205

504

207

325

203

683

207

918

2020 226187 231276 221098 234354

2025 246286 255820 236751 263398

2030 265690 280054 251345 294812

Source:PopulationDivisionoftheDepartmentofEconomicandSocialAffairsoftheUnitedNationsSecretariat,

WorldPopulationProspects:The2008Revision

Agethatdividesthepopulationintwopartsofequalsizeiscalledmedianage,thatis,thereareasmany

personswithagesabovethemedianastherearewithagesbelowthemedianage.

Taking five year period of 201015 and 202530, it is predicted by the United Nations that life

expectancy

in

Pakistan

would

increase

from

68

to

71.9.

The

population

growth

rate

would

decrease

to

1.52, and total fertility rate to 2.70. The crude birth rate (CBR), crude death rate (CDR) and infant

mortalityrate(IMR)areprojectedunderthisscenariotodeclineto21.4,5.6and42.2respectively.

16.6 URBANIZATION

During 19502008, Pakistan's urban population

expanded over sevenfold, while the total

populationincreasedoverfourfold.Dramaticsocial

changes have led to rapid urbanization and the

emergence of megacities. Pakistan is the most

urbanized nation in South Asia with city dwellers

makingup36%of itspopulation, (2008).While the

urbanizationrate is3%(200510).Demographically,

urbanizationisgaugedbothinabsoluteandrelative

terms as growth of cities within a defined area.

According to base case projections, the year 2030

will be a major landmark in Pakistans

demographics. For the first time in its history, the

urbanpopulation in Pakistanwill constitute50% of

thetotal.

Itisbelievedthattherateishighestwhenindustrializationtakesplaceandthegraphshowsthatinthe

formativeyearsofPakistantheratewashighsincetheurbanpopulationhadampleopportunitiesand

thetrendcontinuedevenintheeighties.Theshifttourbanareasisstilltakingplacebutisconsideredto

besmallascomparedtothatinmanyotherpartsoftheworld.

Table16.6:MEDIANAGE

Pakistan

Medianage(years)

Mediumvariant20102030

Year Medianage

2010 21.3

2015 22.52020 23.7

2025 25.0

2030 26.4

Source:PopulationDivisionoftheDepartmentof

EconomicandSocialAffairsoftheUnitedNations

Secretariat,WorldPopulationProspects:The2008

Revision


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242

MostprojectionsareoftheviewthattherateofurbanizationinPakistanwillcontinuetoincrease.This

isduetotheinbuiltmomentumofpasthighgrowthrates.Morethanhalfofthetotalurbanpopulation

of Pakistan (2005) lived in eight urban areas: Karachi, Lahore, Faisalabad, Rawalpindi, Multan,

Hyderabad,GujranwalaandPeshawar.Between2000and2005,thesecitiesgrewattherateofaround

3percentperyear,anditisprojectedthatthisgrowthratewillcontinueforthenextdecade.

Table16.7:PopulationofMajorCitiesofPakistan

CITY 1998census 1981census CAGR(%) 2010

KARACHI 9,339,023 5,208,132 3.49 13,386,730

LAHORE

5,143,495

2,952,689

3.32

7,214,954

FAISALABAD 2,008,861 1,104,209 3.58 2,912,269

RAWALPINDI 1,409,768 794,834 3.43 2,013,876

MULTAN 1,197,384 732,070 2.93 1,610,180

HYDERABAD 1,166,894 751,529 2.62 1,521,231

GUJRANWALA 1,132,509 600,993 3.79 1,676,357

PESHAWAR 982,816 566,248 3.29 1,386,529

QUETTA 565,137 285,719 4.09 871,643

ISLAMABAD 529,180 204,364 5.7 972,669

Source:PopulationCensusOrganization,EAWing

16.7 MegaCities

Mega cities aredefinedashaving apopulation in excessof10million peopleoraminimum level for

populationdensity(at least2,000persons/squarekm).Thesemegacitiesarebeingagglomeratedata

highrate.In1950,only29.8percentofpeoplelivedinurbanareaswhereasby2020,anestimated57

percentwillliveincities.

0 10 20 30 40 50

2015

2020

2025

2030

Fig4:ProjectionsofpopulationinurbanareasofPak(%)(20152030)

Source:WorldUrbanizationProspects 2009


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243

Populationisnottheonlydistinguishingfeatureofmegacities;theirindispensablefunctionalityisalso

thecaseinpoint.Megacitiesaretheproductofthedemandsofcurrenteconomicera.Acriticalnumber

of cities are postindustrial production sites for the leading industries of our period, finance and

specializedservices,theyarenationalortransnationalmarketplaceswherefirmsandgovernmentscan

buyfinancialinstrumentsandspecializedservices,theyfunctionascentresforthecoordination,control

andservicingofglobalcapital.

According to Marshall (1890), the geographical concentration of economic activities can result in a

snowball effect, where new entrants tend to agglomerate as they benefit from higher diversity and

greaterspecializationinproductionprocesses.Workersalsobenefitfrombeinginanagglomerationas

theycanexpecthigherwagesandhaveaccesstoalargerchoicesetofemployers. Manynewmarkets

andinvestmentopportunitiesin,forexample,infrastructure,transportation,healthcare,educationand

recreation willunfold. Handledwell, urbanexpansioncanbe thekey to continuingeconomic success

(McKinsey).

The population of Karachi was about 105,000 inhabitants by the end of the 19th century, with a

cosmopolitanmixofdifferentnationalities.NongovernmentalandinternationalestimatesofKarachi's

populationrunanywherefrom12millionto18million.Thecity'spopulationisgrowingatabout5%per

year (mainly as a result of ruralurban internal migration), including an estimated 45,000 migrant

workers coming to the city every month from different parts of Pakistan while the overall rate of

urbanizationforPakistanis3%.

Table16.8:TOP15MEGACITIESOFTHEWORLDIN2010

RankOrder City CountryPopulation

(millions)

1 Tokyo Japan 36.67

2 Delhi India 22.16

3 SaoPaulo Brazil 20.26

4 Mumbai(Bombay) India 20.04

5 MexicoCity Mxico 19.46

6 NewYork UnitedStatesofAmerica 19.43

7 Shanghai China 16.58

8 Kolkata(Calcutta) India 15.55

9 Dhaka Bangladesh 14.65

10 Karachi Pakistan 13.12

11 BuenosAires Argentina 13.07

12 LosAngles UnitedStatesofAmerica 12.76

13 Beijing China 12.39

14 Riodejaneiro Brazil 11.95

15 Manila Philippines 11.63

Source:WorldUrbanizationProspects:The2009 Revision.

16.8 PakistaniDiaspora

There are approximately 7 million Pakistanis living abroad, remitting close to US$8 billion annually

through formal channels to Pakistan. Worker remittances are the second largest source of foreign

exchangeafterexports.ItisbelievedthateconomicmigrantsconstituteavastmajorityofthePakistani


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244

diaspora.

Remittances,whichareusuallysenttoimmediatefamilymemberswhohavestayedbehind,areamong

themostdirectbenefitsfrommigration;theirbenefitsspreadbroadly into localeconomies.Theyalso

serve as foreign exchange earnings for theorigin countries of migrants. In 2007,US$5,998million in

remittances

were

sent

to

Pakistan.

Average

remittances

per

person

were

US$

37,

compared

with

the

averageforSouthAsiaofUS$33.

Table16.10:Remittances

Totalremittanceinflows(US$millions) Remittancespercapita(US$)

India 35,262 Luxembourg 3,355

Bangladesh 6,562 SriLanka 131

Pakistan 5,998 Nepal 61

SriLanka 2,527 Bangladesh 41

Nepal 1,734 Pakistan 37

India 30

Iran

(Islamic

Republic

of)

16Globalaggregates

SouthAsia 53,201 SouthAsia 33

World 370,765 World 58

Source:HumanDevelopmentReport2009,UNDP

Most of the worlds 195 million international migrants have moved from one developing country to

anotherorbetweendevelopedcountries.Pakistanhasanemigrationrateof2.2%.Themajorcontinent

ofdestinationformigrantsfromPakistanisAsia,with72.5%ofemigrantslivingthere.

Table16.11:Emigrants

Originofmigrants Emigrationrate(%) Majorcontinentofdestinationformigrants (%)

Afghanistan 10.6 Asia 91.4

Nepal 3.9 Asia 95.0

Pakistan 2.2 Asia 72.5

Iran 1.3 NorthernAmerica 39.6

India 0.8 Asia 72.0

Globalaggregates

SouthAsia 1.6 Asia 78.0

World 3.0 Europe 33.4

Source;HumanDevelopmentReport2009,UNDP

The United States is host to nearly 40 million international migrants more than any other country

thoughasashareoftotalpopulationitisQatarwhichhasthemostmigrantsmorethan4inevery5

peoplearemigrants.InPakistan,thereare3,554thousandmigrantswhichrepresent2.1%ofthetotal

population.


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245

Table16.12:Immigrants

Destinationof

migrants

Immigrantstock

(thousands)Destinationofmigrants

Immigrantsasashareof

population(%)2005

UnitedStates 39,266.5 Qatar 80.5

India 5,886.9 Bhutan 5.7

Pakistan 3,554.0 Pakistan 2.1

Iran 2,062.2 Iran 2.9

Bangladesh 1,031.9 Nepal 3.0

Maldives 3.2 China 0.0

Afghanistan 0.4

Globalaggregates

SouthAsia 13,847.0 SouthAsia 0.9

World 195,245.4 World 3.0

Source;HumanDevelopmentReport2009,UNDP

16.9 PolicyInitiatives

KeyInitiatives:

Tocopewiththeevolvingdemographicchallenges,thedraftNationalPopulationPolicy2010seeksto;

PursuePopulationStabilizationgoalthroughearlycompletionoffertilitytransition.

Facilitate realization of demographic dividend by linking fertility transition process with skills

promotionandemploymentgenerationpolicies.

Attainabalancebetweenresourcesandsizeofpopulation.

Increaseawarenessoftheadverseconsequencesofrapidpopulationgrowthatalllevel.

Promotesmallfamilynorms.

Toachievethesegoals,thepolicyaimsatthefollowingkeyobjective.

ProvideaccessoffamilyplanningandReproductiveHealthServicestotheremotestandpoorest

areasofthecountryby2015.

Reduceunmetneedforfamilyplanningfrom25to20percentby2015.

Reducefertilitylevelfrom3.56(2009)to3.1birthsperwomanbytheyear2015.

Ensurecontraceptivecommoditysecurityforallpublicandprivatesectoroutletsby2015.

Improvematernalhealthby:

Encouragingbirthspacing(ofmorethan36months),

Reducingincidenceoffirstbirth(inageslessthan18),and

Reducingproportionofmothersgivinglatebirth(agesbeyond34)

Attainreplacementlevelfertilityi.e.2.1birthsperwomanby2030

Achieve universal access to safe and quality reproductive health/ family planning services by

2030

Reduceunmetneedforfamilyplanningfromexisting25to5percentby2030


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246

Achievecontraceptiveprevalenceratefrom30to60percentby2030

16.10 LabourForceAndEmployment

Introduction:

Pakistanisthe10thlargestcountryintheworldaccordingtothesizeofthelabourforce.Onthebasisof

aparticipationrateof32.8percent,asperthe latestLabourForceSurvey200809,the labourforce is

estimated at 53.72 million. Of the total labour force, 50.79 million are employed while 2.93 million

personsareunemployed,resultinginanunemploymentrateof5.5percent.

If we see the unemployment scenario in the past,

then compared to historical trend of 3 percent,

unemployment levels remained around 5 percent

post 19931999,butinFY02asharpincreaseof8.27

percent was seen. The rate fell during 200307.

However, reaching a low point of 5.2 percent in

200809 it rose again to 5.6 percent in FY09. There

hasbeenadeclineinunemploymentratesince2003

04 accompanied by a substantial rise in the unpaid

familyhelpersparticularlyfemales.

Economicgrowthcontributestorealwageincrease,povertyalleviationandreductioninunemployment

rate. In the labour market the forces of supplyand demand jointly determine price (in this case the

wagerate)andquantity(inthiscasethenumberofpeopleemployed).Itisinterestingtonotethatthe

triggers to labour demand have been remittances by overseas Pakistanis as well as the structure of

economyasrepresentedbyownershippatternoflandholdingsandcontroloverfinancialassets,bothof

whichhaveimplicationsforemployment.

With the demographic transition taking place in Pakistan, youth unemployment takes centre stage.

Youthshouldbeabsorbedproductivelywellbeforetheperiodwhenoldagedependencythreatensthis

potential.Consider that the labour force isgrowingeveryyearbut theopportunities foremployment

aredecliningandthattooatafastrate.Thegoodnewsthough isthatyouthunemployment isbelow

theglobalaverageinourcountry.

Trendsinagespecificunemploymentratesdifferconsiderablyformalesandfemalesinthelabourforce.

Male unemployment has increased in the last two decades whereas female unemployment has

decreased. The gap between the projected female working age population and the projected labour

force is likely to increase sharply over time. The reduction in this gap is desired. Although

unemployment among females has historically been higher than among males, the gender gap has

narrowedconsiderablyovertime.

16.11 KeyIndicators

In200809, theestimated labour force grew by3.7%.Thegrowth in female labour force wasgreater

thanmalelabourforceandconsequentlytheincreaseinfemaleemploymentwasgreater. Employment

comprisesallpersonstenyearsofageandabovewhoworkedat leastonehourduring thereference

periodandwereeitherpaidemployedorselfemployed.Thelabourforceisgrowingandthegrowth

inFY09isgreaterthanthatinFY08.

SIZEOFLABOURFORCE LABOURFORCE

RANK COUNTRY (million)

1 CHINA 812.7

2 INDIA 46.7

8 BANGLADESH 72.5

10 PAKISTAN 55.8

33 NEPAL 18

56 SRILANKA 8.1Source:CIAFactbook


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247

Indicators

LabourForce(Inmillions)

200708

200809

Total 51.78 53.72

Male 40.82 41.91

Female 10.96 11.81

Source:LabourForceSurvey200809

Unemploymentrateishigherascomparedtothelaststatistics.Thechangeisduetofemalethanmale

and

urban

than

rural

unemployment

rates.

Table16.13:CivilianLabourForce,EmployedandUnemployedforPakistan (inmillions)

0304 0506 0607 0708 0809

LabourForce 45.50 50.05 50.33 51.78 53.72

Employed 42.00 46.95 47.65 49.09 50.79

Unemployed 3.50 3.10 2.68 2.69 2.93

Source:VariousissuesofLabour ForceSurveyFederalBureauofStatistics

16.12 LabourForceParticipationRates

Labourforceparticipationrateisdividedintotwocategoriesi.ecrudeandrefined.Crudeactivityrateis

the currently active population expressed as percentage of the total population in Pakistan. Refined

activityrateisthecurrentlyactivepopulationexpressedasapercentageofthepopulation10yearsand

above.Thisrateenablesinternationalcomparisonbyfactoringintheeffectofagecomposition.Justas

crudeactivityrate,therefinedparticipationratealsohadnomajorchangeconsideringthe increasein

totalpopulation

Table16.14:EmploymentTrendandChangesfrom199697and200809(million)

YearPakistan Rural Urban

Employed Change Employed Change Employed Change

199900 36.32 2.19 25.55 1.68 10.77 0.01

200102 38.88 2.56 26.66 1.11 12.22 1.45

200304 42.00 3.12 28.81 2.15 13.19 0.97

2005

06

46.95

4.95

32.49 3.68 14.46

1.27200607 47.65 0.70 33.11 0.62 14.54 0.08

200708 49.09 1.44 34.48 1.37 14.61 0.07

200809 50.79 1.70 35.54 1.06 15.25 0.64


Augmented activity rate is based on probing questions from the persons not included in the

conventionalmeasureoflabourforce,tonetinmarginaleconomicactivitieslikesubsistenceagriculture,

0

10

20

30

40

50

60

2003-04 2005-06 2006-07 2007-08 2008-09

million

Fig-3: Labor force, Employed & Unemployed(2003-09)

Labor force Employed Unemployed

Source: Variousissuesoflabourforcesurveys,FBS


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248

ownconstructionofonesdwellings.Participationratesuggestsfractionalimprovementacrossareaand

gender.However,improvementismoreaccordingtoareai.einurbanthaninruralareasandbygender

i.einfemalesratherthaninmales.

Indicators 200708 200809 Indicators 200708 200809

Crude

Activity

(Participation)

Rates

(%) Refined

Activity

(Participation)

Rates

(%)Pakistan Pakistan

Total 32.2 32.8 Total 45.2 45.7

Male 49.3 49.6 Male 69.5 69.3

Female 14.0 14.9 Female 19.6 20.7

Augmented Augmented

Total 38.2 38.8 Total 53.6 53.9

Female 26.3 27.0 Female 36.7 37.5

Rural Rural

Total 33.8 34.3 Total 48.8 49.2

Male 49.1 49.2 Male 71.2 71.0

Female 17.9 18.5 Female 25.6 26.4

Augmented

AugmentedTotal 42.3 42.7 Total 61.0 61.2

Female 35.1 35.6 Female 50.2 50.7

Urban Urban

Total 28.9 29.9 Total 38.6 39.3

Male 49.9 50.4 Male 66.6 66.3

Female 6.2 7.6 Female 8.4 10.1

Augmented Augmented

Total 30.0 31.0 Total 40.1 40.8

Female 8.6 9.9 Female 11.5 13.1


Population growth and incidentally working age population growth occurred, due to demographictransition, according to which there appears to be a youth bulge and Pakistan has a considerable

numberofthepopulationwhichisnotdependant.Pakistan hasthecapacitybutisthereassimilation?

Table16.15:Population,LabourForceandLabour ForceParticipation(LFP)Rates

YearPopulation(million) Labour Force(million) LFPRate(percent)

Total Workingage* Total Increase Crude Refined

199798 130.58 88.52 38.20 1.90 29.3 43.3

199900 136.01 92.05 39.40 1.20 29.4 42.8

200102 145.80 99.60 42.39 2.99 29.6 43.3

200304 148.72 103.40 45.23 2.84 30.4 43.7

200506 155.37 108.79 50.05 4.82 32.2 46.0

200607 158.17 111.39 50.33 0.28 31.8 45.2200708 160.97 114.64 51.78 1.45 32.2 45.2

200809 163.76 116.63 52.68 0.90 32.8 45.7


*Population10yearsandaboveisconsideredasworkingagepopulation.

16.13 EmploymentbyStatus

Employmentbystatusindicatesthepositiononeoccupiesintheworkforce.StatusinEmploymentrefers


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249

to the type of explicit or implicit contract of employment of the person with other persons or

organization.Statusofaneconomicallyactiveindividualiswithrespecttohisemployment.Thereisless

changeinstatusduetothefactthatinPakistanthereisalargeinformalsector.

Table16.16:EmploymentStatusbyRegion (Millions)

2007

08 2008

09*

Total Urban Rural Total Urban Rural

Employers 0.46 0.34 0.12 0.47 0.34 0.13

Selfemployed 16.77 4.51 12.26 17.06 4.59 12.47

UnpaidfamilyHelpers 14.20 1.72 12.48 14.45 1.75 12.70

Employees 17.66 8.04 9.62 17.96 8.18 9.78

Total 49.09 14.61 34.48 49.94 14.86 35.08

Source:FederalbureauofStatistics *Estimated

Employmentcategoriesaredefinedandtheirchangeduringtheyearisasfollows:

Employeeisapersonwhoworksforapublicorprivateemployerandreceivesremunerationinwages,

salary, commission, tips, pay in kind. Employees are divided into: Regular paid employees with fixedwage,Casualpaidemployee,Paidworkerbyworkperformed,Paidnonfamilyapprentice.Overtheyear

200809employeesincreasedbothinruralandurbansettings.

Employer is a person working during the reference period, on ownaccount or with one or a few

partners at a selfemployment job with one or more employees engaged on a continuous basis.

Employersalmostremainedthesameduring200708and200809.

Selfemployment job isa jobwhere theremuneration isdirectlydependentupon theprofits,or the

potentialprofits,derivedfromthegoodsandservicesproduced.Selfemploymentincreasedin200809.

Thisreiteratesthefactthatinformalizationofoursectorsistakingplace.

Unpaidfamilyworkerisapersonwhoworkswithoutpayincashorinkindonandenterpriseoperated

byamemberofhis/herhouseholdorotherrelatedpersons.Thiscategoryalsoincreasedshowingthat

thisportionoftheworkforceisjustliketheunemployedonlyworseoff.

The increase inselfemployedpersonsaswellasunpaidfamilyworkers indicatesthatactivitiesatthe

household level are increasing. Employment status shows marginal changes i.e decrease in the

comparativeprofilesofemployeesandselfemployedworkerswhileincreaseinthecaseofemployers.

In the Table 16.17 can be observed that the selfemployed males have decreased while female self

employmenthasincreased.

Table16.17:EmploymentStatusbySex (%)

200708 200809

Total Male Female Total Male Female

Employers 0.9 1.2 NA 1.2 1.5 0.1

Selfemployed 34.2 39.6 12.8 33.3 38.7 13.1

UnpaidfamilyHelpers 28.9 19.7 65.0 29.7 20.2 65.0

Employees 36.0 39.5 22.2 35.8 39.6 21.8

Total 100.0 100.0 100.0 100.0 100.0 100.0



16/21

Economic

250

16.14 E

Agricultu

economy

verge of

residing i

towards

Consideri

and rela

sectors

Construct

showdec

Table16.1

Sector

Agriculture

Manufactu

Constructi

Transport

Services

Others

Total

16.15 E

Thefollo

seenthat

thatthisipercenta

expresse

Onecan

orsex.B

andSind

employe

Table16.1

AREA/PRO

Pakistan

Rural

Urban

Punjab

Sindh

KhyberPu

Balochista

urvey20091

ploymentb

ewasand s

but as pop

change an

n urban are

thersectors.

ng Table 16.

ed activitie

the figures

ion shows

line

: EmployedL

ring

n

ploymentb

ingtablegi

employedi

sinnowaycetermsand

asapercen

lanceatTab

tthechang

whileequi

personsisg

:Employed P

VINCE

htoonkhua

0

Sectors

till is the lar

ulation distr

50% of th

as emphasis

18, the incr

is evident

are close

ome increa

bourForceby

Total

44.6

13.0

6.3

5.5

13.7

2.3

100.00

Province

esacompar

dividualsinc

onnectedwiemployedt

tageofthec

leno16.19

ismorepro

alentlytobo

reatestinPu

akistanandPr

gest sector

ibution is o

e people w

is going to

ase inagric

while for

to each

se while se

Sectors(%)

200708

Male

36.9

13.3

7.8

6.8

14.4

2.9

100.00

isonbetwee

reasedinnu

hunemploytalisinmilli

rrentlyactiv

ndseethat

nouncedinr

thgendersi

jabthenSin

vinces

T

43

1

2

1

5

2

f the

n the

ill be

shift

lture

other

ther.

rvices

Female

75.0

11.8

0.4

0.2

10.6

0.2

100.00

Source:Labou

FY08andF

mberandso

entratewons.Unemp

epopulation

heemploye

uralthanur

nKhyberPu

dh,Khyber

2007

tal Ma

.09 39.

.48 25.

.61 13.

.97 22.

.26 10.

.73 4.6

.13 1.9

6.6

5.2

Fig

A

C

S

Total

45.1

13.0

6.6

5.2

13.66

0.10

100.00

rForceSurvey

09interms

didpopulati

ichincreaseloymentrate

.

totalison

anareaand

htoonkhua

ukhtookhua

EM

08

le Femal

6 10.039 8.69

7 1.34

7 6.9

3 1.83

5 1.08

1 0.22

13

13.66

4:EmployedLa

griculture Ma

o nstr uction Tra

ervices Ot

2008

Mal

37.3

13.3

8.3

6.6

11.1

2.9

100.0

00809 Feder

ofareaand

on.Itshould

duringtheistheunem

herise,beit

owesmore

ndBalochist

andtheleas

PLOYED

Total

50.79

35.54

15.25

29.95

12.72

5.97

2.15

Source:Labo

borforcebySe

nufacturing

nsport

hers

Sou

9

Fem

74.

11.

0.4

0.2

11.

0.3

100.

alBureauofSt

rovince.Itc

bebornein

eriodsinceiployedpopu

accordingt

omalesinP

an.Thecha

inBalochist

(

200809

Male

40.04

26.46

13.59

22.68

10.67

4.77

1.92

urForceSurve

45.1

0.1

tors(%)

rce:LabourForce

2

ale

0

tistics

anbe

mind

tisinlation

area

unjab

ge in

n.

illion)

Female

10.75

9.09

1.66

7.27

2.05

1.2

0.23

200809

Survey

00809


17/21


251

16.16 FORMALANDINFORMALSECTORS

During the past years it is observed that there has been a large amount of informalization in the

agriculture sector. There has been a trend of selfcultivation and a decline in share tenancy.

Informalizationisnotjustrestrictedtoagriculture,itisontheriseinnonagriculturesectorsaswell.The

shareofformalsectoremploymentshrunkfrom35percentto27percentincaseofmalesandfrom33

percent to 27 percent in case of females from 20002008. Trade and services in urban small scale

manufacturing areas attracted the labour market and enhanced informalization of the urban labour

market.

Table16.20supportsthefindingsthat informalization isrisingandthat it ismorepronounced inrural

thanurbanareas.Sametrendfollowsaccordingtogender,malesareshiftingfromtheformalsectorso

arefemales.

Table16.20:FormalandInformalSectorsDistributionofnonAgricultureworkers(%)

Sector 200708 200809

Total Male Female Total Male Female

Total 100.0 100.0 100.0 100.0 100.0 100.0

Formal 27.2 27.2 27.4 26.7 26.6 27.6

Informal 72.8 72.8 72.6 73.3 73.4 72.4

Rural 100.0 100.0 100.0 100.0 100.0 100.0

Formal 24.9 25.1 23.2 23.8 24.0 22.2

Informal 75.1 74.9 76.8 76.2 76.0 77.8

Urban 100.0 100.0 100.0 100.0 100.0 100.0

Formal 29.5 29.2 32.5 29.4 29.1 32.8

Informal 70.5 70.8 67.5 70.6 70.9 67.2

Source:Labour ForceSurvey200809FederalBureauofStatistics

16.17 Unemployment

The global economic turmoil has created

unemployment around the world and in Pakistan

2.93 million of the work force is unemployed.

Mismatch in job and skills as well as the temporary

natureofmostjobsisproblematic.Certainsegments

ofthelabourmarketdonotgivesecureemployment.

There has been a positive increase of employed

labour force in both urban and rural settings;

however it should be borne in mind that the

populationincreasehasbeentremendoustoo.

Unemployment rate is the unemployed population

expressed as a percentage of the currently active

population. while Currently Active Population

comprises all persons ten years of age and above

who fulfill the requirements for including among employed or unemployed during or unemployed

duringthereferenceperiodi.eoneweekprecedingthedateofinterview.Unemploymentratehasbeen

decreasingovertheyears.Theproportionofunemployedtothecurrentlyactivepopulationhasbeen

Table16.21:AgeSpecificUnemploymentRate(%)

AgeGroupTotal

200708 200809

1014 9.0 9.3

1519 8.7 9.5

2024 6.8 7.3

2529 4.1 4.3

3034 2.3 2.6

3539 1.5 1.7

4044 1.6 1.5

4549 2.5 2.4

50

54 3.7

4.65559 6.6 6.1

60yrs&above 12.5 12.7

Source:LabourForceSurvey,200809,

FederalBureauofStatistics


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252

decreasingwiththeexceptionof200102whenitincreased.Usuallyitisseenthatunemployedlabour

force decreased during the last decade with the exception of a few years. A slight shift in the norm

occurredin200809whenunemployedlabourforceincreased.

Unemploymentrategoesdownwithage,itisobservedthatmostparticipationinthelabourforceisin

age

group

20

50.

This

table

confirms

the

finding

that

unemployment

rate

goes

down

with

age

and

participationincreases(unlesstheageisabove50).

In200506,theunemployedlabourforce inyouth(1525years)was1.2million,whichwas0.4million

lowerthanthestockin200102.Ifthecurrentlevelofunemploymentprevailsforthenext20years,the

stockofyouthunemployedin2030willbearound6million.

Inreadingtable16.22wehavetomakeroomofthefactthatmostofthe labourforceisemployedin

theruralareasthustheunemploymentfiguresaretobeseenasafractionofthewhole.Unemployed

labour force is almost the same in both areas but unemployment rate is higher in urban areas. The

differenceisquitelarge.

Table16.22:UnemployedLabourForcebyArea

Years UnemployedLabour Force(Inmillions) UnemploymentRate(%)

Total Rural Urban Total Rural Urban

199900 3.0 1.9 1.1 7.8 6.9 9.9

200102 3.4 2.1 1.3 8.2 7.5 9.8

200304 3.5 2.0 1.4 7.6 6.7 9.7

200506 3.1 1.8 1.2 6.2 5.3 8.0

200607 2.6 1.6 1.0 5.3 4.7 6.6

200708 2.6 1.7 0.9 5.2 4.7 8.3

200809 2.9 1.7 1.1 5.5 4.7 7.1

Source:VariousissuesofLabour ForceSurveyFederalBureauofStatistics,

16.18 PolicyInitiatives

a)EmploymentPromotionPolicies

The policy focus of government is on creation of decent employment, and human resource

development.Theimportanceofthefactcanbegaugedbytheinitiativestakenbythegovernmentsuch

as National internship Program, Presidents Rozgar Program; credit is being provided for self

employmentbyNationalBankofPakistan(NBP),enhancementofresidentialfacilitiesbyconstructionof

one million housing units,doublingof ladyhealthworkers to cover Kachi Abadis, raisingof minimum

wage and pension of workers, restoration of Trade Unions. These steps are helpful in employment

generationandhumanresourcedevelopment.Thespecificpoliciesareasfollows:

b)

Accelerating

Investment

&

Economic

Growth

Economicgrowthhasdirectimplicationsforemployment.Productivityfosterscapitalintensiveactivities

thuscausinglayoffintheshortrunbutinthelongrunduetoproductdiversificationandgreateroutput

itcausesjobincrease.Thusgovernmentspriorityistotakethegrowthratetoanoptimumlevelforjob

creation.There isadistinctionbetween lowquality jobscontributingtotheincrease inthenumberof

workingpoorandqualityjobssoemphasisisalsoonthisaspectofthelabourforce.


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c)MinimumWage

Thegovernmenthasrecentlyannouncedaraiseof16%intheminimumwages.Thedegreetowhichthis

increasegeneratesanacceptablelivingstandardforwageearnershastobeassessedandtheextentto

whichithassharedthegrowthinGDPisalsotobegauged;itisatasktobeaccomplishedinfuturewage

legislation. Furthermore, the minimum wage fixation will be subjected to a tripartite deliberation

processatregularintervalstoprotectthelivingstandardsoftheworkersandwiderdispersalofgrowth

benefits.Implementationlapseswillbefocuseduponthroughstreamliningtheinspectionsystem.

d)InvestinginIncreasingWaterResources

Agriculture isthe largestsectorofPakistanseconomyemployingnearly45.1percentofthecountrys

workforcein200809.Morethantwo thirdsofthecountyspopulationlivesinruralareasanddepends

directlyorindirectlyonagriculturefortheirlivelihood.ThemajorconstraintinPakistansagriculturehas

beenthelackofavailabilityofsufficientirrigationwater.

e)CreditFacilityThroughSMEBank

SME Bank was established to provide financial assistance and business support to small and medium

enterprises.Upto31stDecember,2009SMEBankhasfinanced8,299SMEs,disbursedloansamounting

toRs.9,510millionto40,891beneficiariesinthecountry.

f)MicroCreditFacilitiesThroughKhushaliBank

TheKhushaliBankwasestablishedtoprovideloansuptoRs.30,000/ eachtounemployedpeopletoset

uptheirownbusiness.Upto31stDecember,2009,theKhushhaliBank(KBL)disbursedloansamounting

toRs.22,481millionto2,038,004beneficiaries.

g)PresidentsRozgarSchemeByNationalBankOfPakistan(NBP)

NationalBankofPakistanhasdevelopedafullrangeofproductsunderthepresidentsRozgarScheme

withabrandnameofNBPKAROBAR.Underthisscheme,aloanuptosizeofRs.100,000/ isgivenforamaximumperiodoffiveyearswithagraceperiodofthreemonthsforestablishingthebusiness.

h)PakistanSkillingProgramme

NationalVocationalandTechnicalEducationCommission(NAVTEC)hasbeenestablishedwithaviewto

overcoming lack of standardization, skill gaps, non availability of proper curricula. Poor quality of

instructionalstaff,inadequateaccreditation/certification,poorinfrastructureandtoencourageprivate

sector to enhance technical education and vocational training capacity and to bring harmony and

develop linkage between technical education and vocational training. Being a regulatory body, this

Commissionwillberesponsibleforlongtermplanninginthisparticularfield.Itwillalsoberesponsible

for setting standards for formulating the syllabus, accreditation, certification and trade testing, etc.

NAVTEC is giving Rs. 2000/ per month to each trainee during the training course. Presently, 1522technical institutes with anenrollment of 314,188areworking in the countryandproviding technical

skilltothelabourforce.Itisbeingplannedtoproduceonemillionskilledlabourperyear.

i)SkillDevelopmentCouncils

Inordertodevelopskilledlabourforceonmodernlines,LabourandManpowerDivisionhasestablished

fiveSkillDevelopmentCouncils (SDCs)oneeachat Islamabad,Karachi,Lahore,PeshawarandQuetta.

TheSDCsassessthetrainingneedsoftheirgeographicalareas,prioritizethemonthebasisofmarket


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demandand facilitate training of workers through trainingproviders in the public and private sector.

TheseCouncilhavemetthediversifiedtrainingneedsoftheindustrialandcommercialsectorsandhave

sofartrained46,674workers.

j)OverseasEmployment

Onefactorthatallowedcountriestoreducepovertyandtoimproveincomedistributiondespiteaweak

growthemploymentlinkageisoverseasemployment,whichhasbeenanimportantfeatureofPakistans

experience. In 2008, for example, the flow of workers abroad was over 400,000. This amounted to

around28per cent of the totaladdition in thesize of the domestic workforce between 200607 and

200708. In 2009, the flow of workers abroad reached 600,000 est. which is a major factor in the

increaseinremittances.

AseparateOverseasPakistaniDivisionhasbeenestablishedtofacilitateoverseasworkers.Community

WelfareAttaches(CWAs)havebeendeputed inalltheEmbassiesofPakistan, located inmajor labour

importingcountries,toprotecttherightsofPakistaniworkers.Boostingofoverseasemploymentmay

behelpfulinreducingpressureonjobmarket.

MinistryofLabour,Manpower&OverseasPakistanisismakingeffortstoboostoverseasemployment.

Inthisregard,MoUs/AgreementswithKuwiat,Malaysia,Korea,QatarandUAEhavebeensignedwhile

MoUs/AgreementswithseveralothercountriesareunderProcess.Exportofmanpowerisundertaken

byOverseasEmploymentPromoters(inPrivateSector)andOverseasEmploymentCorporation(inPublic

Sector).MorethansixbillionUSdollarswouldbeearnedduringthenextbudgetyear.The increasein

overseas migration is the result of revolutionary steps taken by the Government for the export of

manpower.MoUhasbeensignedwithMalaysiaforrecruitmentofPakistaniworkerssoastoopennew

jobopportunitiesforalargenumberofsemiskilledandunskilledworkers

MoU in the fieldofmanpowerhasalsobeensignedbetweenPakistanand Korea.According to MoU,

Pakistanwillsend itsworkerstoSouthKoreaonregularbasis.Firstbatchofworkers leftforKoreaon

22nd April, 2008. MoU in the field of manpower has also been signed between Pakistan and the

GovernmentofUnitedArabEmirates(U.A.E).MoUbetweenPakistanandLibyainthefieldofmanpower

exporthasalsobeensignedrecently.

k)InformationTechnology

Information Technology has enormous potential to create jobs for the educated unemployed in the

country.ThedevelopmentofITandTelecomsectorhascreatedenormousemploymentopportunities,

directly or indirectly, for educated unemployed in a wide range of areas like call centres, telecom

engineering telecom sales, customer services, finance and accounting etc. This is one of the fastest

growingsectorsoftheeconomy.TheallocationofRs.3.30billionhasbeenretainedforthissector.This

would further accelerate the activities in the next couple of years, creating more business and

employmentopportunitiesinthecountry.

l)LabourMarketInformationSystemandAnalysis

AProjectLabourMarketInformationSystemandAnalysishasbeenlaunchedintheHRDWingofthe

LabourandManpowerDivision.Theobjectiveoftheprojectistodevelopandconsolidatethecollection

and usage of Labour Market Data in Pakistan. An analysis of data will be made using internationally

recognized Key Indicators for Labour Market (KILMs). The system will yield regular statistics and

informationaboutemployment,underemploymentandunemploymentatnational,localandregional


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levels.Thecoverageofvulnerablegroupsuchaswomenwillbeensured.Changesinsocioeconomicand

educational characteristics of the employed and unemployed labour force, as well as, the changes in

occupationalandsectoralcompositionoftheemployedwillalsobeanalyzed,enablingthepolicymakers

to suggest policy initiatives for employment generation. Three reports under the project have been

releasedwhichhavebeenappreciatedbyallconcernedatnational,aswellas,internationallevel

m)NationalInternshipProgram

ThefirstphaseofNationalInternshipProgram(NIP)hasbeencompleted.Underthefirstphase,25826

applicantswereoffered internshipatFederal,ProvincialandDistrictGovernmentlevels.Secondphase

of NIP was launched in February, 2008. A total of 71,915 applications were received. So far 21138

applications have been verified by HEC and NADRA and are being placed in Ministries, Divisions,

DepartmentsandProvincialGovernmentsandatDistrictlevel.FinanceDivisionallocatedanamountof

Rs.1650millionforpaymentofstipendtointerneesduringthefinancialyear200809.

16.19 LabourPolicy2010:Salientfeatures

In an effort to apply principles of social Justice in the world of work, the government announced a

LabourPolicyon1stMay2010,withthefollowingrelevantfeatures:

1.Raising of Minimum Wages by 16% from Rs. 6000 of the previous year to Rs. 7000 per month.

Paymentofwagesshouldbemadethroughcheques/banktransfersinallestablishmentsregistered

underanylaw.

2.In order to monitor the implementation of labour laws pertaining to wage payments, working

environment and time, Tripartite Monitoring Committees will be set up at district, province and

federallevel.

3.LabourMarketinformationsystemwillbeestablishedthroughcreationofHumanResourceCentres

atdifferentcities.

4.Contractemployeeswithinpublicsectorwillberegularized.

5.Initiation of a comprehensive social insurance scheme on self registration/voluntary basis for all

workersandselfemployedintheeconomyforoldagebenefits.

6.Establishment of a Board to review the cases of workers dismissed under the Removal from

services(SpecialPower)Ordinance2000.

7.Schools run by Workers Welfare Fund (WWF) are to introduce Matric Technical Scheme for skill

development.

Documents

labor Force Pakistan