ACKNOWLEDGEMENT
We are grateful to Ms.Asma Hyder who was a great help in the project. She was always
available to help us with the problem areas. She took out time for us at all times, putting
her work aside therefore we thank her for the effort she has put into our project. Her
encouragement has always inspired us as she helped us whenever we needed her help. She
helped us in our problem areas all the time. It would have been a difficult task having to do
our project without her help.
Executive Summary:
This report starts with the introduction of unemployment followed by the explanations of
various types of unemployment. The report also contains the objective for doing the
project and motivation behind doing research on this particular topic. The major portion of
the report contains the data and its analysis which is done with the help of bar graphs .It
also contains the reasons for increased unemployment and the consequences that Pakistan
is facing due to increased unemployment. Some of the major governmental policies have
also been discussed in this report and the effect of those policies. In the end a brief
conclusion of the research work has also been given. The tables giving comparison of
unemployment with age, sex and provinces are provided in the annexure.
Table of Contents
INTRODUCTION: 4
PRESENT SITUATION 6
OBJECTIVE: 8
MOTIVATION BEHIND THE TOPIC: 8
ORGANIZATION OF THE STUDY: 9
LITERATURE REVIEW 10
DATA 12
Unemployment Rates: Sex and Age 13
Required data: 17
ANALYSIS 19
ANALYSIS OF UNEMPLOYMENT RATE VERSUS GDP GROWTH RATE 20
Comparison of GDP with unemployment using bar chart 21
ANALYSIS OF UNEMPLOYMENT RATE VERSUS INVESTMENT GROWTH RATE
22
Comparison of investment with unemployment using bar chart 22
ANALYSIS OF UNEMPLOYMENT RATE VERSUS EXPORT GROWTH RATE 23
ANALYSIS OF UNEMPLOYMENT RATE PROVINCE WISE 25
ANALYSIS OF UNEMPLOYMENT RATE RURAL/URBAN WISE 26
ANALYSIS OF UNEMPLOYMENT RATE AGE AND GENDER WISE 27
CONCLUSION: 30
GOVERNMENT POLICIES: 32
PROGRAMS INITIATED BY GOVERNMENT: 33
REFERENCES: 37
ANNEXURE 39
INTRODUCTION:
Unemployment refers to the inability for willing workers to find gainful employment. The
degree of unemployment in a nation is one indicator of the economic health of the country.
Many factors can negatively affect the unemployment rate including corporate downsizing,
mergers, implementation of automation technologies, and job outsourcing to other nations.
TYPES OF UNEMPLOYMENT:
Structural Unemployment
Structural unemployment is caused by a mismatch between jobs offered by employers and
potential workers. This may pertain to geographical location, skills, and many other
factors.
Cyclical Unemployment
Cyclical unemployment also known as demand deficient unemployment occurs when there
is not enough aggregate demand in the economy. This is caused by a business cycle
recession and wages not falling to meet the equilibrium rate.
Frictional Unemployment
It represents people who are temporarily unemployed because they are in between jobs.
Seasonal Unemployment
Seasonal unemployment occurs because of the seasonal nature of some jobs (fruit pickers)
Underemployed
It refers to people who are working less than full-time hours but would like to work longer
Long-term Unemployed
These are people who have been unemployed for longer than 12 months.
Hard core Unemployment: These are people who are unemployed due to their personal,
mental or physical characteristics.
Major Causes of Unemployment in PAKISTAN from Past to Present:
1. Employment in the private sector absolutely stopped because they shifted their capital to
other countries because of nationalization of industrial units which badly affected the
investment industrial sector.
2. The higher growth rate of population is the major cause of unemployment in Pakistan.
The resources of the country are limited because population has exceeded the optimum
level.
3. Karachi is the biggest industrial base of Pakistan, but investors are reluctant to invest
there because of unrest and violence.
4. Our educational system is also responsible for increasing unemployment rate among the
educated youth. The attitude of our youth towards the choice of a career is unrealistic and
unproductive. Rapid mechanization and computer technology also causing unemployment.
5. Lack of infrastructure and facilities in the field of energy, telecommunication and
transportation also prevent the industrialist from setting up new industries.
6. Lack of enough industries to employ ever increasing number of graduate in Pakistan
7. The government is not involving in capital expenditures which create more jobs.
8. Main issue of unemployment in our country is that when ever a new technology comes
as software or hardware then all the people start to learn that. Then at the end, you will see
tens of thousands of students of a particular field against about 5 to 10 job vacancies.
9. Things are not handled in appropriate manner, as the vacancies are less but job seekers
are more than that.
10. Opportunities are not enough and system of reference is so much indulged in our
society that if a company needs employees then workers of that company will provide
resume of their relatives and friends thereby influencing employment decisions, so in this
way many people dont get the opportunity to apply for those jobs.
11. Lastly, our countrys present law and order situation is proving very detrimental to the
investment climate and is one of the main hindrances for achieving employment goals
which need immediate remedy
PRESENT SITUATION:
Unemployment is a growing problem of every nation. Pakistan has reached a critical stage
and joblessness is increasing daily. Moreover, downsizing in many government offices and
within the private sector have exacerbated the problem
Economists caution that unemployment is likely to grow at a more rapid pace in the years
ahead. Half the population is below 18 years of age, So entry into the labour force is fairly
high and therefore the labour force growth numbers and the unemployment growth
numbers will be very high. Also the female participation in the labour force is amongst the
lowest in Asia and comparable only to Sub-Saharan Africa. According to the labour force
survey, the crude activity rate (which measures the percentage of labour force in the total
population) stands at 9.3 percent for women compared to 47.6 percent for men.
 Latest Unemployment Rates in Pakistan:
Unemployment RatesUsing Bar Chart:
Unemployment RatesUsing Line Chart:
OBJECTIVE:
This topic has been selected with the objective of finding out what are the reasons that are
behind increased unemployment in Pakistan. This objective led us towards the start of our
project because unemployment is not a single dilemma of our country it has deep influence
on other economic factors. Unemployment has a relation with inflation, GDP, countrys
export which we are aim to find how this impact is going to effect and had affected our
economy from past. Moreover our objective is to look at how we can improve the situation
and how can we create unemployment in our country which will not be beneficial at macro
but also effect at the micro level of our country.
MOTIVATION BEHIND THE TOPIC:
Unemployment is not a single problem it is related to many other problems that poorly
impact the economic growth. Unemployment affects the social cost which includes
increasing poverty, personal hardships, depression, decay of unused skills, and increase in
crime as well as family disputes. In a nutshell, level of dissatisfaction rises higher and
higher among unemployed people.
In order to reduce the percentage of unemployment from our society we have planned to
work on this issue as we have observed that the percentage of unemployment is increasing
remarkably in our rural as well as urban areas. Secondly we are motivated that may be we
provide our government and employers with some helpful suggestions that will increase
the employment ratio. Keeping in view the present economic conditions prevalent in
Pakistan in which country faces high inflation due to gap between revenues and expenses.
It is suggested that Pakistan should pursue generating enough revenues, so as to meet its
local and international commitments, needs to use its human resource or reduce
unemployment by setting up new projects which can generate economic stimulus and
thereby reduce gap between revenues and expenses which will impact other economic
fundamentals.
ORGANIZATION OF THE STUDY:
Total duration:
12-weeks
First Phase (3-weeks):
Research from the Secondary data sources such as research journals
HECs Digital Library
Online Directories
Economic Survey of Pakistan
National Bureau of Statistics etc.
Second Phase (5-weeks):
Analysis of the collected data which will include
Causes of Unemployment
Effects of Unemployment on Economy
Past trends how unemployment percentage increases and what are the factors behind them
Representation of the trends through charts.
Organization of the researched material
Application of Statistical tools on the collected secondary data
Third Phase (3-weeks):
Interpretation based on the Statistical Analysis
Conclusion
LITERATURE REVIEW
Kakwani, N., and H. Son. Hyun (2006). This paper deal with the method of
unemployment. The author say we should also take those people in account who are
earning below substances level of income in the labour market. The proposed methodology
was applied to Brazils unit record household survey for the period starting from 1995 to
2004. According to author those people who r underpaid also consider themselves
unemployed, because they are working only to survive. Unemployment is generally
defined as not working or working few hours but if a person works voluntarily but earns a
lot of money then he/she should not be considered as unemployed. In this article a new
method is introduced that combines two aspects of labour market (unemployment and
under employment) and arrives at a new index of unemployment that satisfy certain
desirable properties.
Marvin, D. Krohn (1999). This article is based on the correlation analyses of two variable
namely unequal distribution of income and the unemployment which are becoming the