Archive for Jobless

Pakistan Unemployment – Causes and Solutions

Posted in Unemployment In Pakistan with tags , on August 31, 2010 by aboutpakistaniculture

Unemployment is a central problem of Pakistan because when unemployment is high, resources are wasted and people’s incomes are depressed; during such periods, economics distress also spills over to affect people’s emotions and family lives. The socio economics system of Pakistan and institutions has failed to provide employment to the increasing labor force. Labor force include all persons who are of ten years and above , and during the period are without work, currently available for work and seeking for work. About 2.4 million persons of labor force were estimated as unemployed in 1999, as construction and transport sectors have an absorbed 11.2 percent, 6.8 and 5.7 percent as compared to 10.5percent, 7.2 and 5.0 percent respectively in 1994-1995.

Major Causes of Unemployment:

1. Employment in the private sector absolutely stopped because they shifted their capital to other countries because of nationalization of industrial units badly affected the investment industrial sector.
2. The higher growth rate of population is the major cause of unemployment in Pakistan. The resources of the country are limited because population has exceeded the optimum level.
3. Karachi is the biggest industrial base of Pakistan, but investors are reluctant to invest there because of unrest and violence.
4. Our educational system is also responsible for increasing unemployment rate among the educated youth. The attitude of our youth towards the choice of a career is unrealistic and unproductive. Rapid mechanization and computer technology also causing unemployment.
5. Lack of infrastructure and facilities in the field of energy, telecommunication and transportation also prevent the industrialist from setting up new industries.
6. Lack of enough industries to employ ever increasing number of graduate in Pakistan
7. The government is not involving in capital expenditures which create more jobs.
8. Main issue of unemployment in our country is that when ever a new technology comes as software or hardware then all the people starts studying about that. Then at the end, you will see ten thousand students of a particular field about 5 to 10 job vacancies.
9. Things are not handled in appropriate manner, as the vacancies are less but job seekers are more than that.
10. Opportunities are not enough and system of reference is so much indulged in our society that if a company needs employees then workers of that company will provide some resume to them of their relatives and friends so in this way many people don’t get the opportunity to apply for those jobs.

Suggestions:

1. Economic Revival package should announce by the government for the revival of industries sector, to stimulate production and investment.
2. Government should try to boost exports through broadening the tax base and lowering tariffs.
3. Government should announce multiple packages for the development of agriculture sector.
4. A number of fiscal and monetary measures should take attract industrialists and particularly foreign investment.
5. Technical training facilities should be provided. In this way unemployed people will get a chance to enhance their skills and become able to earn more reason able income.

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