LFS 2024-25: Pakistan’s jobless rate rises to 7.1% under new global metrics

November 26, 2025 (MLN): Pakistan’s unemployment rate has reached 7.1% under the updated global labour standards adopted in the latest Labour Force Survey (LFS) 2024-25, showing a major shift in how employment is measured nationwide.

Under the older ICLS-13 methodology, the jobless rate stands slightly lower at 6.9%, compared with 6.3% recorded in the 2020-21 survey.

The rise is driven largely by Pakistan’s transition to the 19th International Conference of Labour Statisticians (ICLS) framework, which applies a stricter definition of employment by excluding subsistence agriculture workers and other own-use producers from the employed population.

As a result, 2.5m subsistence farmers are no longer counted as employed in 2024-25. The labour force under the new definition stands at 83.1m, compared with 85.6m under the older standard, according to the press release.

The shift also affects broader labour market indicators. The share of the inactive working-age population has fallen from 55.1% in 2020-21 to 52.4%.

Labour force participation has risen from 44.9% to 46.3%, despite the exclusion of subsistence farmers. Had they been included, participation would have reached 47.7%, suggesting gradually improving confidence in job prospects.

Historical unemployment trends show earlier progress followed by renewed pressure. Between 2013 and 2018, the jobless rate dipped from 6% to 5.8% during a period of stronger economic activity.

It rose again to 6.9% in 2018 and has since remained elevated amid slower growth and the impact of structural reforms carried out under the IMF programme.

Sectoral data shows Pakistan’s employment base continuing to shift away from agriculture.

The share of agriculture in total employment has dropped from 37.4% in 2021 to 33.1% in 2024, while the services sector has expanded from 37.2% to 41.2% over the same period. Industry’s share has remained comparatively stable.

Wage indicators in the latest survey point to strong nominal wage growth.

Average monthly wages have increased from Rs 24,000 to Rs 39,000 since 2020-21.

The gender wage gap has also narrowed significantly, falling from Rs 4,500 per month to less than Rs 2,000, driven by stronger labour market outcomes for women.

The LFS reports a notable rise in entrepreneurship, mostly led by women. The share of own-account workers has increased from 35.5% to 36.1%, while female entrepreneurship has climbed sharply from 19% to 25.2%.

Meanwhile, the share of contributing family workers a category dominated by unpaid women has declined from 21.1% to 19%, suggesting more women are entering paid employment.

For the first time, the survey also captures gig-economy participation. Around 2.9% of workers rely on gig work in their primary jobs, while 10.6% use gig platforms for secondary income.

Women play a larger role in secondary gig work: 15% of women with secondary jobs depend on gig-based tasks, compared with 9.8% of men.

The burden of unpaid domestic and care work remains substantial. Out of 179.6m working-age individuals, 117.4m including 50.7m men and 66.7m women are engaged in unpaid household and caregiving activities.

Women continue to shoulder a disproportionate share, with 76% performing unpaid work compared with 55% of men.

PBS has released all key labour indicators under both the old and new ICLS standards to ensure comparability across survey cycles, marking Pakistan’s full transition toward internationally aligned labour reporting practices.

The updated measurement framework, officials say, is intended to provide a clearer picture of employment, productivity, and labour market pressures as the government seeks to revive investment, strengthen industry, support exports, and create formal sector jobs.

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