Causes of youth unemployment in Pakistan & its solution
UNEMPLOYMENT among young people is one of the major issues in any developing or underdeveloped country. Pakistan is currently facing a similar challenge. It is critical to address these underlying causes in order to reduce youth unemployment and promote the country’s economic and social development. According to the World Bank, Pakistan has one of the highest rates of youth unemployment in the world. This alarming unemployment rate has far-reaching economic and social consequences linked to the formation of criminals. In developing nations, a famine of government spending in the economy is a major contributor to unemployment. The government is unable to generate jobs to keep up with the increasing number of young people joining the labour market. Access to funding, economic growth and infrastructure initiatives have made it even more difficult to create jobs.
Growing populace also contributes significantly to youth unemployment. As the population grows, fewer opportunities become accessible. Consequently, work rivalry is fierce and young people are having difficulty in finding gainful employment. This unemployment impacts both rural and urban areas across the country. This has severe consequences for Pakistan’s future, progress and socioeconomic development. Pakistan’s youth population is believed to be around 62 million, ranking it sixth on the globe. Unfortunately, the young unemployment rate in Pakistan is believed to be as high as 50 percent. According to the World Bank, the unemployment rate for the 15-24 age group in Pakistan was estimated to be around 24.4% in 2018. This makes Pakistan one of the countries with the highest level of youth unemployment.
One of the primary reasons for youth unemployment in Pakistan is a lack of adequate education. Only 43% of Pakistan’s populace has a formal education. Due to a lack of access to excellent education, many young people are unable to find employment that fits their talents and qualifications. Consequently, there are a significant number of unemployed teenagers in the nation. Due to a dearth of excellent education and vocational training programs, young people have poor levels of economic productivity and skill development. The majority of young people are unable to find meaningful work, resulting in long-term unemployment.
According to the Human Development Index, Pakistan’s youth literacy rate is only 57%. This means that only 57% of the population between the ages of 15 and 24 is literate. This is significantly lower than the global average of 91%. A lack of necessary skills also contributes to youth unemployment. For example, in Pakistan, agriculture is one of the largest and most important sectors of the economy, but most of the youth lack the necessary skills to work in it. Also, the country does not have an adequate system of apprenticeship or on-the-job training programs. Therefore, many youths are unable to find jobs even after completing their education even in skilled agriculture education.
Pakistan has one of the lowest GDP per capita in South Asia. This means that there is less money available for job creation. This reduces the number of potential job opportunities for the youth and contributes to higher levels of youth unemployment in Pakistan. Another major cause of youth unemployment is a lack of job opportunities in the informal sector which is largely unregulated. Pakistan has an extremely weak labour market with low wages and job security. Many young people have been forced to take low-paying, insecure jobs which are frequently insufficient to adequately provide for themselves or their families. The informal sector dominates the economy which does not provide the necessary job opportunities for the youth. Furthermore, many formal job opportunities are restricted to specific professions and locations, making it difficult for many young people to find suitable employment. The youth unemployment rate is much higher than that of other age groups. This is primarily due to the majority of available jobs being in the informal sector which is poorly paid and frequently unstable. According to the International Labour Organization, Pakistan has a staggering 37.2% youth unemployment rate. This is higher than the country’s overall unemployment rate of 6.7%.
Another significant cause of young unemployment in Pakistan is political unrest. In recent years, the nation has encountered several political crises, making business and investment more difficult. Consequently, there are fewer work openings and greater percentages of youth unemployment. Access to resources is a significant problem in Pakistan. Many young people do not have access to tools such as money, technology and mentors that would help them find meaningful work. Government’s underinvestment in the industrial and agricultural areas has also resulted in fewer employment possibilities. Therefore, private industry has little motivation to generate jobs, contributing to the young unemployment. The country’s poverty percentage is believed to be around 32%.
Lesser financing opportunities for youths are also a major cause of youth unemployment. Because the country’s financial sector is undeveloped, it is difficult for young people to acquire loans and other forms of money. Consequently, entrepreneurship or investing in career possibilities is challenging for them. Furthermore, most young people lack the necessary financial literacy to handle their existing money. The latest pandemic (COVID-19) and economic catastrophe have worsened Pakistan’s young unemployment issue. In the lockdown, many companies have been compelled to shutter, resulting in widespread employment losses. This leads to decreased GDP all over the globe and Pakistan had no exception.
Consequently, it is clear that a multiplicity of factors have contributed to Pakistan’s current youth unemployment crisis. To address this issue, the government must address both its underlying causes as well as its immediate consequences. Investing in quality education and vocational training programmes, creating a more secure job market, combating nepotism and cronyism as well as investing in the industrial and agricultural sectors. Pakistan should also secure its borders and create a welcoming environment for international investors and create incentives for investors to start creating more jobs countrywide. The government and other stakeholders must prioritize youth education and job possibilities. Only then can Pakistan hope to have a more promising economic future.
—The writer is Editor-in-Chief, Inverge Journal of Social Sciences (IJSS), Islamabad
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