The higher growth rate of population is one of the major cause of unemployment in Pakistan. The resources of the country are limited because population has exceeded the optimum level. It can be clearly seen the Pakistan is suffering from over population and the being an underdeveloped country it is very difficult to control this. It also affects the employment rate of Pakistan. The population has been increasing. Although the growth rate is decreasing by the actual figure of population has increased from 85.10 million in 1981 to 149.03 in 2003. This shows the rapid rate of increase in population. In order to minimize the unemployment problem, a strict population policy maybe introduced.
Our educational system is also responsible for increasing unemployment rate among the youth. The attitude of our youth towards the choice of a career is unrealistic and unproductive. Rapid mechanization and computer technology also causing unemployment. Less than three-quarters of its school-age population attends primary school. Nearly two-third of the total adult population can’t read or write. Expenditure on education as a percentage of GDP has been less than 2 % in the last decade.
The level of unemployment in Pakistan is moving up day by day. The socio economics system of Pakistan and institutions has failed to provide employment to the increasing labor force. The rate of expansion in industrial sector is very slow. In fact, the employment in the private sector has absolutely stopped because they shifted their capital to other countries because of the global economics condition and also as we are the front line state against war on terror. And investors are reluctant to invest here because of the political instability in the country, unrest and violence. The unemployment rate in Pakistan in the year 2007 and 2008 was estimated as 6.5% and 7.5% in the year 2007. In exact terms, it was 5.6% plus substantial underemployment in 2007 and 7.5% estimated in the year 2008. These facts are according to CIA world fact book which comprise of the percentage of labor force which is currently unemployed. According to the Human Development Report on South Asia, Pakistan’s labour force is growing at the rate of 2.4%, and the unemployment rate is growing at an alarming rate of 6% per anum in the last five years.
As we know that the Pakistan’s economy used to derive great benefit from overseas Pakistanis and expatriate labour abroad, especially the Gulf countries. This was traditionally unskilled labour engaged in the construction boom of the post-1973 oil price hike shock. However, the opportunities for unskilled labour in Arab countries have been reducing due to the economic changes taking place there.
With the decline in jobs abroad, the economy’s capacity to generate employment opportunities has been decreasing, which can be figured out from the low growth rates. With the high rate of population growth, rate is further expected to increase in near future because of the current financial crisis in the country.
