Employment a challenge despite low unemployment rate: WB

ISLAMABAD: The World Bank (WB) has said employment is a challenge in Pakistan despite there being a low unemployment rate in the country.

The ‘Labour Market Analysis’ using data from a Pakistani online job portal finds that although there is an excess supply of highly educated workers, certain industries, such as information and communications technology (ICT), lack workers who have specialised skills and experience.

The WB stated that among the employed people, three-quarters work in informal sectors; 36 percent and 24 percent are self-employed and family workers, respectively; and only 12 percent are wage workers with a written contract.

One of the key findings is that there are insufficient jobs where bachelor and graduate degree holders are expected to use their acquired skills. The labour market tightness at the post-secondary level is low.

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The youth, despite being more educated, face a three times higher unemployment rate and are more likely to work in informal sectors than older people.

The online job portal reviewed represents a high-skill segment of the labour market in the country. Postings on the platform offer higher salaries than the national average, and job seekers are younger and better educated than the mean labour force.

The analysis of short-listing shows that matching between applicant qualifications and job requirements is important and that over qualification does not necessarily lead to any advantages.

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