Breaking the Cycle: Addressing the Unemployment in Pakistan.

By Gul-e-lala Ramzan

Unemployment refers to the lack of a job due to either a lack of skills or education that does not meet eligibility criteria. It is often said that “unemployment is the root cause of many problems that lead to suffering.” In Pakistan and other countries, unemployment can be categorized into frictional, structural, cyclical, seasonal, and underemployment. Frictional unemployment occurs when individuals are temporarily between jobs, such as when someone leaves a position to search for a better one or after completing a work contract. Structural unemployment arises when people’s skills do not align with job market demands. In Pakistan, many graduates face this issue because their education does not match the practical needs of employers. Cyclical unemployment happens during economic downturns when reduced demand forces companies to lay off workers. Seasonal unemployment is tied to specific periods, such as harvesting seasons in agriculture. Underemployment is when individuals are in roles that don’t utilize their full skills or when they work part-time but desire full-time employment.

Among the most pressing causes of unemployment are the lack of skills and the widespread practice of nepotism. Without relevant skills, individuals struggle to find stable employment, which is often exacerbated by a lack of motivation or poor academic performance. Nepotism, where individuals are hired based on personal connections rather than merit, excludes skilled and deserving candidates who lack influential references. Additionally, Pakistan’s high population growth places immense pressure on the job market, making it more competitive and limited. The education system also contributes to the problem, as it often fails to equip students with market-relevant skills. Economic instability, both domestic and global, further reduces job opportunities by discouraging investment. Frequent energy crises cause businesses to downsize or shut down, worsening the situation. A lack of industrialization beyond agriculture and technology curtails the creation of new jobs. Political instability deters investors, while limited access to finance prevents young entrepreneurs from starting new businesses. Social and cultural barriers, especially for women, restrict the workforce and prevent the full use of available human resources.

Tackling unemployment in Pakistan demands a broad strategy. This includes reforming the education system to align with industry needs, diversifying the economy beyond agriculture, ensuring political and economic stability, and confronting corruption. There should also be efforts to enhance access to financial resources and promote targeted skills development programs. The effects of unemployment are severe and widespread. Financial instability often pushes families into poverty. Social unrest increases as the unemployed become frustrated, leading to higher crime rates and societal tensions. Economic growth slows due to reduced productivity and consumer spending. On a personal level, unemployment leads to mental and physical health issues such as depression, anxiety, and substance abuse. Many job seekers choose to migrate abroad, which, while sometimes economically beneficial, causes emotional distress due to family separation and cultural adjustment challenges.

Over the past decade, Pakistan’s unemployment rate has fluctuated in response to domestic and global developments. According to data from the Pakistan Bureau of Statistics (PBS), the World Bank, and the International Labor Organization (ILO), unemployment has generally ranged between 4% and 7% from 2014 to 2024. For instance, PBS recorded a rate of approximately 6.3% for 2021–2022, while the World Bank reported it slightly higher at around 6.4%. These differences can be attributed to varying data collection methods. Nevertheless, most organizations agree that unemployment is disproportionately higher among youth and educated individuals.

One of the most effective solutions is implementing a merit-based hiring system that prioritizes skill and performance over connections. Encouraging students to acquire relevant skills—either technical, digital, or field-specific—can enhance employability. Parents and teachers should promote skill acquisition early on, and schools should introduce career counselling to guide students toward suitable professions. Often, students end up in careers that do not match their interests or aptitudes, leading to poor outcomes and joblessness.

Unemployment is a serious issue in Pakistan that affects both individuals and the broader economy. The main causes include lack of skills, nepotism, and economic instability. However, the cycle of unemployment can be broken through skill development, fair hiring practices, and career guidance. Governments, educators, and families must all play their role in shaping a skilled workforce ready to meet the demands of the modern job market. A stable and well-prepared workforce is essential for Pakistan’s progress and long-term prosperity.

One of the primary solutions to unemployment is implementing a system of merit-based hiring, where individuals are selected for jobs based on their qualifications and skills rather than personal connections. This approach ensures that competent and deserving candidates are given opportunities, reducing the influence of nepotism and favoritism in employment. Alongside this, it is vital for parents and teachers to encourage students to acquire additional skills, particularly those aligned with their chosen fields. These skills can significantly enhance a student’s chances of securing meaningful employment in a competitive job market.

Career counselling also plays a critical role in addressing unemployment. It helps students understand their strengths, interests, and the demands of the job market, guiding them toward more informed career choices. Without proper guidance, many students end up in academic or career paths that do not suit them, resulting in underdeveloped skills and ultimately, joblessness. When students receive the right support early on, they are better equipped to pursue professions that align with their capabilities and the market’s needs.

Unemployment remains a serious challenge in Pakistan, impacting individuals and the nation’s overall economic health. The root causes—lack of skills, nepotism, and economic instability—require targeted and sustainable solutions. Breaking this cycle demands a commitment to developing practical skills, promoting fair hiring practices, and providing comprehensive career guidance. All stakeholders, including the government, educators, and families, must contribute to preparing the youth for the demands of today’s workforce. With a stable economy and a skilled population, Pakistan can pave the way for long-term growth, opportunity, and prosperity.

The writer is the student of International Relations department at International Islamic University Islamabad (IIUI), Pakistan.