The job situation in Pakistan is currently challenging, with high unemployment rates, especially among youth and fresh graduates. The youth unemployment rate in Pakistan is particularly high, with estimates ranging from 10% to 15% in recent years. Many struggle to find suitable employment, often due to a mismatch between education and market demands.
Pakistan’s economy has been facing challenges, including inflation, currency devaluation, and a shrinking job market. These factors have affected both the public and private sectors’ ability to create new jobs. In many sectors, particularly in urban areas, there is a saturation of qualified candidates for a limited number of job opportunities, especially in fields like engineering, business, and social sciences.
With around 64% of Pakistan’s population under the age of 30, the competition for jobs is intense. Youth unemployment remains a significant issue, partly due to the education system not aligning with market needs and the lack of career counseling. Programs like the “Kamyab Jawan Program” and “Ehsaas Program” aim to tackle unemployment by providing loans and training for young entrepreneurs. However, the impact has been slow to materialize.
Many graduates lack the skills demanded by employers, leading to a gap between education and employment opportunities. Vocational training and skill development programs are slowly gaining traction. There has been growth in IT, e-commerce, and the startup ecosystem, offering opportunities in tech, freelancing, and digital entrepreneurship.
Pakistan’s economy has faced ongoing challenges such as slow economic growth, high inflation, currency devaluation, and political instability. These factors have led to reduced investments in both the public and private sectors, limiting job creation. COVID-19 worsened the situation, with businesses closing or scaling down, leading to job losses and reduced hiring.
A major issue is the skills mismatch between job seekers and market requirements. Many graduates possess degrees in fields that have limited job opportunities or lack the practical skills needed by employers. Vocational training and skill development are often underfunded or not aligned with industry needs.
A large portion of the workforce is employed in the informal sector, which accounts for more than 70% of jobs. These jobs, while numerous, offer little stability, social protection, or opportunities for career advancement. Many workers in the informal sector are considered underemployed, meaning they do not work the number of hours they would prefer or are not fully utilizing their skills.
The public sector, traditionally a major employer in Pakistan, has scaled back hiring due to budgetary constraints. Government jobs, which are highly sought after for their stability, have become harder to secure due to hiring freezes and limited openings.
Urban areas such as Karachi, Lahore, and Islamabad tend to have better employment opportunities compared to rural regions, where agriculture remains the primary source of income. In rural areas, unemployment and underemployment are more pronounced due to the seasonal nature of agricultural work and limited access to industrial or service sector jobs.
Female labor force participation remains low, with only around 22% of women participating in the workforce. Societal norms, cultural barriers, and safety concerns limit employment opportunities for women, particularly in rural areas.
Despite the challenges, the IT sector and freelancing offer hope for young professionals. Pakistan is among the top countries for freelancers, providing opportunities in areas like digital marketing, software development, and content creation. However, these opportunities are not widespread, and only a segment of the population benefits from them.
To address high unemployment, Pakistan needs to focus on economic reforms, skill development, entrepreneurship, and investment in high-growth sectors like technology, renewable energy, and manufacturing.