Professional Documents
Culture Documents
Submitted to:
Sir Abdul Farooq
Submitted by:
Muzammil Shahid (10)
Hajra Fazal(29)
Adeel Abid(08)
(F005-BBA)
Date:
11, December 2006
Contents
1. Introduction 3
1.1 Statement of problem 3
1.2 Objectives of Study 6
1.3 Methodology and source 7
1.4 Organization 7
2. Review of literature 8
3. Analysis of Data 23
3.1 Global Causes of Unemployment 23
3.2 Costs and effects of Unemployment
24
3.3 Situation of Unemployment in South Asia 26
3.4 Situation in Pakistan 29
3.5 Role of Pakistan Government 31
6. References 38
List of Illustrations
Table 1 27
Table 2 28
Table 3 30
Figure 1 27
Figure 2 38
Appendix A 36
Appendix B 37
2
1. Intr od uct io n
These are only the few obstacles out of long list of problematic
Unemployment or Underemployment.
3
debts, and/or medical costs, where the availability of health
of inefficiency.
In year 2005 labor force worldwide was mixed, with more people
At the end of 2005, 2.85 billion people aged 15 and older were in
work, up 1.5 per cent over the previous year, and up 16.5 percent
since 1995.
4
education. Among adults (aged 25 years and older) the global
between 1995 and 2005. Examining the adult age range by sex
80.8 per cent, the share of the adult female population that was
employed, compared with 51.7 per cent in 1995. The gap in the
increase of 2.2 million since 2004 and 34.4 million since 1995.
per cent of the working age population. Young people are more
and South-East Asia and the Pacific’s unemployment rate was 6.1
populated region with 1.4 billion people, 60 per cent of whom are
5
in the working-age group. Two, labor force participation is only
discuss:
6
1.3 Methodology and Sources of Data
Most of the data is collected from internet for this term paper.
1.4 Organization
7
2. R evie w o f lit er atur e
of the world's new urban population. These people will need jobs
worldwide.
urban, Nigeria 35% and India 27%, the urban areas in all three
8
employment in G7 countries was 15 %. Among the larger EU
as one of the most direct causes. By the year 2000, the ranks of
The ILO estimates that there will be 1.2 billion new participants
to the world labor market by the year 2025. Most of the new jobs
9
now accounts for 40 per cent of all employment in developing
countries.
the more people there are looking for work, the more people
there are looking for work then the more likely they are to put up
with poor working conditions and poor pay, they more willing
they are to put up with poor conditions and pay the easier it is for
paying out and use it to further there own goals. Any company
does not call in sick, is not late, does not need breaks, can work
all day and all night, and is generally reliable. Finally once
company has paid for the machine it no longer needs to pay more
(other than electricity etc). This means that this money can be
until only few are left in place. The companies are aiming for the
highest output for the cheapest cost and not even governments
10
employed; rather they must beg the companies to do it and offer
them tax incentives, money which is later taken from the pocket
Syed M. Aslam (1999) writes that after fifty years, in Pakistan the
There are many seekers but few jobs. In a society where ‘who
you know’ has replaced ‘what you know’ as the major criteria for
11
issue has taken a global viewpoint. Many of the developed
civil peace and the rule of the law weaken the very basis of all
Miss: Samina Khalil and Rao Noman Saleem (1999) from Applied
12
emotions and family lives. In Pakistan 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
13
Kerstin Marx (2000) reported that the fallout from the financial
14
within the region, according to the UN report. The crisis has now
Mr. Johann Van Rooyen (2001) writes about the cost and causes
hardly hit by it. To the people of poor countries job means access
to the society. The physical and mental strain may push the
15
economy. When referring to structural causes of unemployment
region with 1.4 billion people, 60 per cent of whom are in the
growth rates are lower than both GDP and labor force growth
this sector has been suffering from lack of investment and low
16
population is illiterate. South Asia's labor market is
labor force. The survey claims that the WTO failed to generate
have raised from 2.9 per cent in 1995 to 3.4 per cent in 2001.
17
between the unemployment rates of men and women 3.5 times
jobs. HDC notes that adult literacy has raised, it adds that there
18
weight. India exports food grains now, yet nutritional data
Lankan research body, "The high literacy rate among women and
the private sector has delayed the marriage age for women."
19
of international aid for the most helpless youth in order to bring
can young people get the chance to work them out of poverty.
there were more than 300 million youth who were living below
the US $2 per day poverty line, notes a report by ILO. The highest
the Pacific 15.8 per cent. The European Union prides itself with
13.1 per cent and East Asia with only 7.8% (officially). It is
women more rapidly than men when fewer job opportunities are
20
Central and South America it was 21 percent. In the developed
especially youth are mostly effected by this. ILO says that the
rapid increase in the GDP of the most of the economies could not
turn that economic growth into job creation and increasing of the
but even this could not decrease the unemployment rate. This
cure by itself. There were 191.8 million jobless people at the end
age population. The report says that only in service sector the
21
Mr. Somavia, ILO (2006) said, in many countries, agricultural
those areas who are already poor. This report suggests concept
that poverty can only be reduced by the rout of more and better
programs. The cost of this for a nation is not only the lost GDP
22
3. A na l ysi s o f Da ta
23
which more than one cause is involved in the production of the
people there are looking for work, the more people there are
looking for work then the more likely they are to put up with poor
working conditions and poor pay, they more willing they are to
put up with poor conditions and poor pay the easier it is for big
unemployment.
different and more than one causes but the need is to control
these situations.
24
Unemployment is potentially very damaging. Its knock-on effects
finding a decent job in the future. This is how child labor birth
generations.
have produced are lost for ever. With rise in unemployment GDP
for the State that the cost of unemployment does not only
25
consist of the loss of potential income-derived from taxation, it
countries
youth and the educated; working poor who do not get sufficient
social attitudes.
levels have raised from 2.9 per cent in 1995 to 3.4 per cent in
26
Data from the Asian Development Bank (ADB) show that
Unemployment rates,
1999-2001 (%)
Countries Rates
Bangladesh 3.3
Bhutan 1.4
Maldives 2.0
India 7.3
Nepal 1.1
Pakistan 7.8
Sri Lanka 8.2
Table 1 .Source: ILO
9
8
7
6
5
Uem ploym ent rate
4
3
2
1
0
Bangladesh India Pakistan Sri Lanka Nepal
Figure 1
27
The figures reveal that in most South Asian countries the
28
Table 2. Source: ILO
15
10
fem ale unem ploym ent (%)
5 m ale unem ployment (%)
0
Pakistan India
Figure 2
1951 defined the labor force as all persons of 12 years and above
ten years and above who were working for profit or wages or
helping their family members. Not only the change lowered the
29
age but it also included the unpaid family members in the
persons of ten years of age and above who worked at least one
hour during the reference period [the year] and were either ‘paid
today and a participation rate of 28.7 per cent, the total labor
were employed. This also shows that only 2.4 million persons
30
unskilled workers whose share is 22.9 per cent.
Gr oup No . %a ge S har e
Legislators, senior officials and
3.1 m 8.6%
managers
Professionals 1.3 m 3.6%
Technicians and Associate
1m 2.8%
Professionals
Clerks 1.1 m 3%
Service Workers and Shop and Market
2.8 7.7%
Sales Workers
Skilled Agricultural and Fishery
13.3m 36.8%
Workers
Craft and Related Trade Workers 3.6 m 9.9%
Plant and Machine Operators and
1.7 m 4.7%
Assemblers
Unskilled 8.3 m 22.9%
Total 36.2 m 100%
country.
31
created hurdles for a common man. The Yellow Cab scheme was
drifted by the elite class, which had their sources in the banks.
After taking the cars as taxi in their name, they converted them
into private cars and most of those deserved to get benefit from
persons.
schemes in Pakistan
During the year 1998 about 104,000 persons have been sent
schemes.
32
Pr esident Musha raf recently launched self-employment
delivery and small Utility Stores. It is for the poorest of the poor
all.
33
4. Suggestions and conclusions
complemented for this. Civil society can play its role through
poverty instead of false figures. This data can help devise plans
34
look for options and possibilities that can divert our huge
the job creation should be on easy and real terms and not just
investment.
35
2) Govt. should seriously try to boost exports through broadening
agriculture sector.
APPENDIX A
36
Source: ILO, Global Employment Trends Model, 2005
Appendix B
37
Source: ILO, Global Employment Trends Model, 2005
2005 figures are preliminary estimate
References
38
Syed M. Aslam, UNEMPLOYMENT — A NIGHTMARE
Samina Khalil and Rao Noman Saleem, Applied Economics Research Centre
Unemployment Situation in Pakistan
Websites
www.ilo.org
www.pakistaneconomist.com
www.sarid.net
www.pakistanobserver.com
www.google.com
www.wikipedia.com
39