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Unemployment rate stands at 6.3%

Unemployment rate stands at 6.3%
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June 12, 2024 (MLN): Pakistan’s unemployment rate stands at 6.3%, with an unemployed population of 4.51 million, according to the Economic Survey 2023-24 released on Tuesday.

The survey said that according to the latest available Labour Force Surveys (LFS) 2020-21, the total labor force stands at 71.76m (48.5m rural and 23.2m urban).

While the employed labor force stands at 67.25m (45.7m rural and 21.5m urban).

To note, according to the 7th National Population and Housing Census, Pakistan's total population is 241.5m, showing an increase of 16.3% compared to the population in 2017.

It said that Pakistan Bureau of Statistics (PBS) has conducted Labour Force Surveys (LFS) since 1963.

However, LFS for 2022-23 could not be undertaken due to the engagement of PBS with the 7th Population & Housing Census.

However, work on LFS 2024-25 is under process, it added.

The employment structure in Pakistan has changed over the decades.

Due to technological transformation, the share of employment in the agriculture sector (37.4%) has shifted to industry and the services sector.

The services sector is the largest growing sector of the economy, and the share of employment in the services sector was 37.2% in 2020-21.

The unemployment profile, categorized by age and gender, reveals that the youth (aged 15-24) have the highest unemployment rate of 11.1%, with 10.0% for males and 14.4% for females.

The second highest unemployment rate is seen in the age group of 25-34 years, with a rate of 7.3%.

Among this group, 5.4% of males and 13.3% of females are unemployed.

Notably, unemployment is more prevalent among females, especially those between 15 and 24 years of age.

This situation forces the youth to wait for employment opportunities after entering the labor force, which restricts their learning opportunities and may lead to a rise in discouraged workers.

Overseas Employment

Pakistani workers play a crucial economic role by sending remittances to their home country.

These remittances serve as a vital source of income for many households in Pakistan, contributing to poverty alleviation, improving living standards, and stimulating consumption.

More than 13.53m Pakistanis have gone abroad through official procedures to work in over 50 countries until April 2024.

About 96% of Pakistani registered workers for overseas employment in Gulf Cooperation Council countries, especially Saudi Arabia and the United Arab Emirates.

They contribute to the development of Pakistan's economy by sending remittances, the primary source of foreign exchange after exports.

During 2023, the Bureau of Emigration and Overseas Employment (BE&OE) and Overseas Employment Corporation (OEC) have registered 862,625 workers for overseas employment.

An overall increasing trend (4%) was observed in terms of emigrants registered in 2023 (862,625) as compared to 2022 (832,339).

According to BE&OE, during 2023, more than 49.5% (426,951) of Pakistani workers moved to Saudi Arabia for employment, followed by the UAE (26.7%) to earn their livelihood.

Oman employed 60,046 Pakistani workers (7.0%), while Qatar offered jobs to 55,112 individuals (6.4%). Bahrain and Malaysia hosted 13,345 workers (1.5%) and 20,905 workers (2.4%).

The highly skilled persons who proceeded abroad for employment increased from 20,865 in 2022 to 45,687 in 2023.

Similarly, an increase of 26.6% and 2.28% was also observed in highly qualified and semi-skilled trades during 2023.

On the other hand, a rise of 8.7% was witnessed in unskilled categories.

However, number of skilled workers registered for overseas employment decreased from 347,733 in 2022 to 314,932 in 2023.

Upskilling and workforce certification are the pressing needs of the time to meet international standards and demand. In this regard, the role of NAVTTC and TEVTA is crucial to producing a skilled and qualified force.

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Posted on: 2024-06-12T11:50:54+05:00