Unemployment rises to 7% as Pakistan struggles with job creation

Pakistan’s unemployment rate has surged to 7% from 1.5% over the past decade, according to a report by the Ministry of Planning. 

The report attributes the rising unemployment to insufficient GDP growth, which fails to meet the demands of the health and education sectors. 

The report highlights the country’s inability to generate enough jobs, particularly for women and youth, and notes that unemployment is higher in Pakistan than in India and Bangladesh.

With an annual population increase of 5 million, the country faces mounting challenges in addressing poverty and fulfilling essential needs. The Planning Commission estimates that Pakistan needs to create 1.5 million jobs annually to meet employment demands.

To combat the growing crisis, the Planning Commission recommends reducing youth unemployment by at least 6% and cutting women’s unemployment by 17%. The report also highlights the barriers faced by Pakistani women in accessing job opportunities compared to their counterparts in neighboring countries.

The report underscores the urgency for economic reforms to address unemployment and inflation, emphasizing the need for robust strategies to boost job creation and stabilize prices in the country.