The labor force of Pakistan is centered on various issues of shortage of resources, depressed incomes, and economic distress. The effects of which spill over from emotions and family lives of people to bringing economic impacts.
The existing population of Pakistan accounts for 27.46% of the labor force participation whereas the total labor force comes to 39.24 million. According to the Labor Force Survey 1996-97, the unemployment rate was 6.1%, and 5.4% as per the labor Force Survey 1994-95. According to surveys in 2015, the unemployment rate has fallen to 5.90% from 6% in 2014. With the estimates of the Pakistan Bureau of Statistics, the unemployment rate has decreased. But still, there are so many people who are actively looking for a job to earn a living for themselves.
The reason for this is that over the past decades, technological movements have benefitted individuals and economies across the globe. It has brought a lot of changes and has modified the labor market even in Pakistan by expanding the active job seeker market. In Pakistan, technological advancements have helped in creating more job opportunities for the unemployed but skilled labor. The market has become more acceptable for laborers whose skills are complementary to the latest technology such as workers who are educated in IT and engineering-related disciplines.
Pakistani Job Market:
Pakistan’s economy has become a turnaround story of the decade, according to research market research report by CLSA, economic growth has accelerated to 7%. Employers are now able to choose among a large number of competent people. There has begun intense competition in Pakistan among graduates to acquire the latest skills for becoming successful in the international market.
According to HEC, every year since 2010, Pakistani universities are producing half a million graduates including over 10,000 IT graduates. The number of university graduates in Pakistan increased from 380,773 in 2005-6 to 493,993 in 2008-09. There are 161 universities with 1.5 million students enrolled in Pakistan as of 2014. It is expected that this growing human capital will substantially increase. With almost 70% of the population below the age of 20, there is a need to employ the latest tools for addressing this young segment that is at ease with the continually advancing technology.
In order to keep this demographic bulge of young people in control, the state will have to employ tools to enhance employment opportunities. Organizations are embracing work arrangements other than typical employees. Entrepreneurship and freelancing are playing a vital role in job creation and are providing limitless opportunities to young people. It allows the young lot to follow their passion and start their own businesses instead of relying on typical job hiring.
The ambitions are particularly strong in Pakistan because it is a developing market and provide the right environment to enable aspiring and early-stage entrepreneurs and freelancers to succeed. But there is a need for the Government to create education policies that support future generations of young entrepreneurs and freelancers. There is a need to create a culture that is supportive of the youth unemployment problem. It will help millions of young individuals in Pakistan to make an impact and start their own enterprises.