PBS rolls out Labour Force Survey 2024-25 under updated international standards

New methodology shifts employment classification; subsistence farming no longer counted as work


ISLAMABAD: The Pakistan Bureau of Statistics (PBS) has launched the Labour Force Survey (LFS) 2024-25 using the latest standards issued by the 19th International Conference of Labour Statisticians (ICLS), introducing significant changes to how the country measures employment.

The new survey replaces the older 13th ICLS framework, which Pakistan last used in 2020-21. Under the updated methodology, subsistence agriculture workers, individuals producing mainly for their own households, are no longer counted as employed. This definitional shift removes roughly 2.5 million people from the employed population.

As a result, the labour force now stands at 83.1 million under the new framework, compared with 85.6 million when measured under previous criteria.

At the launch event, Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal said the transition to the updated standards would provide a clearer picture of labour market trends. He noted that more than 120 countries have adopted the 19th ICLS methodology.

The survey reports an increase in labour force participation, rising from 44.9% in 2020-21 to 46.3% under the new method. The share of inactive working-age individuals declined from 55.1% to 52.4%. Had subsistence farming remained classified as employment, participation would have reached 47.7%, according to the minister.

Unemployment has risen from 6.3% in 2020-21 to 6.9% under the old definition and 7.1% under the revised standard. The data also shows a continued shift out of agriculture across provinces. Agricultural employment fell from 37.4% in 2021 to 33.1% in 2024, while the services sector expanded from 37.2% to 41.2%.

Average monthly wages increased from Rs24,000 to Rs39,000 over the period. The gap between male and female earnings narrowed, with the difference declining from Rs4,500 per month in 2020-21 to under Rs2,000 in 2024-25.

The survey indicates rising self-employment, including among women. The share of own-account workers increased from 35.5% to 36.1%, while female own-account participation grew from 19% to 25.2%. Unpaid contributing family workers declined from 21.1% to 19%.

For the first time, the LFS also measures participation in gig-based work. About 2.9% of workers hold gig-related primary jobs, while 10.6% are engaged in gig work as a secondary activity. Women show higher participation in secondary gig work (15%) compared with men (9.8%).

The survey includes new data on unpaid domestic and care work. Of the country’s 179.6 million working-age population, 117.4 million individuals are engaged in unpaid care or household responsibilities, including 50.7 million men and 66.7 million women.

The minister said recent economic stabilisation measures have slowed demand but aimed to support future investment and job creation. PBS has released parallel indicators under both the 13th and 19th ICLS methodologies to allow comparison across survey cycles.

Ghulam Abbas
Ghulam Abbas
The writer is a member of the staff at the Islamabad Bureau. He can be reached at [email protected]

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