NewKerala.com

Pakistan's Real Unemployment Crisis: 22% Jobless Rate Exposed

A Pakistani media article reveals the country's severe unemployment crisis, with economist Dr Hafeez Pasha estimating the real rate at 22%, far higher than the official 7%. The economy is failing to create quality jobs, with millions trapped in informal work and the export sector stuck in low-value textiles. The education system is criticized for producing graduates with skills mismatched to market needs, leading to educated unemployment. The article warns that without drastic policy changes, Pakistan could have over 20 million unemployed by 2029, creating a permanent tinderbox for social unrest.

Key Points: Pakistan's 22% Unemployment Crisis & Economic Collapse Risk

  • Real unemployment near 22% vs official 7%
  • 8-9 million openly unemployed, 15-18 million underemployed
  • Economy stuck in low-value exports like textiles
  • Education system produces unemployable graduates
  • 20+ million jobless predicted by 2029
2 min read

'Pakistan reeling under mounting unemployment'

Economist reveals Pakistan's real unemployment is 22%, not 7%, with 8-9 million jobless and a looming crisis of 20+ million unemployed by 2029.

"This is not a temporary mismatch. It is a permanent and expanding backlog of wasted human potential, wilfully ignored by the state. - Business Recorder article"

New Delhi, Jan 4

The Pakistan government "continues to peddle a comforting unemployment rate of 7 per cent", yet, according to prominent economist Dr Hafeez Pasha, the real figure is closer to 22 per cent, according to an article in the Pakistani media.

"The ground reality is far grimmer: 8-9 million Pakistanis are openly unemployed. 15-18 million are underemployed, trapped in low-productivity, informal work. Over 2.2 million youth enter the labour force every year. GDP growth of 2.5-3.5per cent absorbs barely half of them. This is not a temporary mismatch. It is a permanent and expanding backlog of wasted human potential, wilfully ignored by the state," the article in the Karachi-headquartered Business Recorder said.

After two decades, Pakistan's export basket remains trapped in low-value textiles and commodities. Engineering, electronics, chemicals, and IT services remain marginal. Without value-chain migration, scalable job creation is a mirage, it observed.

The article highlighted that tariffs and subsidies protect rent-seeking incumbents instead of driving productivity. Pakistan does not lack factories; it lacks competitive factories. Labour-intensive manufacturing is sacrificed to monopolies.

The article also pointed out that the country's universities mass-produce degrees disconnected from market needs, while technical and vocational education is starved of funding and prestige. The outcome is educated unemployment-- the most volatile and politically dangerous form.

Pakistan's unemployment crisis is no accident of fate. It is not the result of global headwinds or temporary shocks. It is a direct, predictable, and manufactured outcome -- the consequence of deliberate policy choices made year after year, the article lamented.

The article painted a grim outlook ahead. Five years from now, if this blueprint remains unchanged, by 2029, Pakistan will be a country with 20+ million unemployed with an economy where 60 per cent of labour is informal and insecure. It would simultaneously face skilled labour shortages and mass joblessness, trapped in low exports, low productivity, and stagnant per-capita income. In other words, it will be a permanent tinderbox of social unrest, and at that stage, reform will no longer be policy-driven. It will be panic-driven, in the middle of systemic collapse, it added.

- IANS

Share this article:

Reader Comments

S
Sarah B
The article makes a crucial point about "educated unemployment." We see a similar trend in parts of India too, where degrees don't match job market needs. Investing in vocational training and aligning education with industry is so important. A lesson for all developing economies.
V
Vikram M
While the situation there is indeed grim, we must also focus on our own challenges. Our unemployment rates, especially among youth, are also a concern. Let's not view this with schadenfreude but as a cautionary tale. Stability in the region benefits everyone. 🙏
P
Priya S
"Permanent tinderbox of social unrest" – such a powerful and frightening phrase. When millions of young people have no hope or future, it creates immense instability. The leadership needs to prioritize job creation over everything else. Basic economics.
R
Rohit P
The comparison with India's IT and pharma sectors is stark. We had our challenges but managed to build some competitive industries. Their over-reliance on textiles and protection of monopolies is holding them back. Tough reforms are needed, but is there political will?
M
Michael C
A respectfully critical point: The article is from Pakistani media, which is good, but our own media should also introspect. Do we report our own unemployment data with such brutal honesty? Or do we also sometimes "peddle comforting" figures? Food for thought.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Leave a Comment

Minimum 50 characters 0/50