Pakistan jobless rate rises to 7.1% as labour force expands to 179.6 Million

Pakistan’s unemployment rate increased to 7.1% in the 2024–25 fiscal year from 6.3% a year earlier, even as total employment and overall economic activity expanded, according to the Pakistan Economic Survey 2025–26 released on Thursday.

The Labour Force Survey 2024–25, included in the Economic Survey, showed that the working-age population rose significantly from 159.8 million to 179.6 million, indicating continued expansion in the country’s labour supply.

Over the same period, the employed labour force increased from 67.25 million to 77.2 million, reflecting gains in job creation across sectors. However, the number of unemployed persons also rose from 4.51 million to 5.9 million, pushing the unemployment rate higher.

The report noted that labour force participation improved from 44.9% to 46.3%, showing greater engagement in the job market, particularly among youth and women.

Agriculture, forestry and fishing remained the largest source of employment, although its share declined from 37.4% to 33.1% as workers gradually shifted toward non-farm sectors.

Manufacturing employment remained broadly unchanged, slipping marginally from 14.9% to 14.8%, indicating limited industrial absorption of new workers.

In contrast, the construction sector posted modest growth, rising from 9.5% to 9.9%, supported by infrastructure development, housing demand and public investment activity.

The wholesale and retail trade sector increased from 14.5% to 16%, reflecting expanding commercial activity and urbanisation trends.

Transport, storage and communication employment rose from 6.2% to 6.6%, driven by growth in logistics, delivery services and communications-linked work.

Overall, the survey said labour market trends reflected an economy in transition, with services and trade absorbing a larger share of workers while agriculture continued to play a dominant role in livelihoods.