TABLE OF CONTENTS

INTRODUCTION: ............................................................................................................................................ 2
UNEMPLOYMENT: ......................................................................................................................................... 2
TYPES OF UNEMPLOYMENT: ......................................................................................................................... 2
CAUSES OF UNEMLOYMENT: ........................................................................................................................ 3
EFFECTS OF UNEMPLOYMENT: .................................................................................................................... 4
CURRENT UNEMPLOYMENT RATES IN PAKISTAN: ........................................................................................ 4
YOUTH UNEMPLOYMENT: ............................................................................................................................ 6
UNEMPLOYMENT AND POVERTY:................................................................................................................. 6
SOLUTIONS OF UNEMPLOYMENT: ................................................................................................................ 7

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INTRODUCTION:
Pakistan has been facing immense crises and problems since the time of its
independence, but today the number of problems has multiplied to an extent. As the
basic necessities like food, clothes and shelter, employment also plays its important role
in the society. Without employment society will not flourish. The foremost problem
world is facing lack of resources, growth population and poverty. Due to unemployment
the living standard of Pakistani is going down day by day.

UNEMPLOYMENT:
Unemployment occurs when a person tries to find out work but fails. The most frequent
measure of unemployment is the unemployment rate.

TYPES OF UNEMPLOYMENT:
There are four types of unemployment:
 Frictional Unemployment
 Seasonal Unemployment
 Structural Unemployment
 Cyclical Unemployment
 Classical Unemployment
 Demand deficient unemployment

Frictional Unemployment:
Friction unemployment means unemployed people who are
switching jobs or looking for other options or the first time.

Seasonal Unemployment:
Seasonal unemployment happens when people are out of
work due to season, especially in fields of agriculture.

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Structural Unemployment:
Structural unemployment is job which is becoming outdated
due to no longer needing a specific skillset

Cyclical Unemployment:
Cyclical unemployment means people are out of jobs as a result
of poor economy.

Classical Unemployment:
Classical unemployment is the view of unemployment that
put forward by classical economists . According to classical framework, wages and prices
are perfectly flexible so as to keep the economy at full-employment.

Demand Deficient Unemployment:

Demand-Deficient Unemployment refers to
unemployment where the aggregate demand level is below that necessary to achieve
full-employment. In Pakistan unemployment is of structural and cyclical nature.

There are more jobs than people willing to take them, he recalls, because most of the
girls opted for one reason or the other to stay away from the job market, and the boys
found the starting monthly salary to be too low at Rs 10,000. (Ishtiaq, 2017)

CAUSES OF UNEMLOYMENT:
 High Population Growth
 Lack of Employment opportunities
 Slow Developing Industries
 Inflation
 Precession
 Changes in Technology
 Willingness to Work
 Disability

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  Discriminate factors

EFFECTS OF UNEMPLOYMENT:

Economy society
Wasted production Standard of living
Financial costs Tension over taxes rise
Recession Insecurity amongst employees
Spending Power Crime and Violence
Less spending power of employed Employment gaps

CURRENT UNEMPLOYMENT RATES IN PAKISTAN:

Unemployment rates in Pakistan remained unchanged at 5.90% in 2016 from 5.90% in
2015

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 U1: the percentage of labor force unemployed for 15 weeks or longer.
 U2: the percentage of labor force who lost jobs or completed temporary work.
 U3: the official unemployment rate that occurs when people are without jobs and they
have actively looked for work within the past four weeks.
 U4: the individuals described in U3 plus “discouraged workers,” those who have
stopped looking for work because current economic conditions make them think that no
work is available for them.
 U5: the individuals described in U4 plus other “marginally attached workers,” “loosely
attached workers,” or those who “would like” and are able to work, but have not looked
for work recently.
 U6: the individuals described in U5 plus part-time workers who want to work full-time,
but cannot due to economic reasons, primarily underemployment.

If a reasonably good economic growth rate does not produce enough jobs, it is time to
review economic policies to remedy the situation (Bokhari, 2017)

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YOUTH UNEMPLOYMENT:
Youth unemployment is a significant problem with much
socio-economic implication. The unemployment rates are higher for urban persons at
unreliable age groups.

The unemployment rates have amplified for persons of different age groups during
1993-9412004-05. Thus, the occurrence of youth unemployment has an increasing
tendency and it is more delicate in urban areas. Special employment policies need to be
prepare to address the problem of youth unemployment. The level of education is
significant correlate of unemployment. There is a universal trut that levels of education
and unemployment rates are inversely related with each other.
Unemployment rates are higher for the educated workers. This is true for both male and
female workers, with in rural and urban areas. Illiterate person or workers through low
level of education that do not have sufficient employment options. Consequently, they
cannot meet the expense of to wait for a better employment opportunity

UNEMPLOYMENT AND POVERTY:

Unemployment and poverty exists at the same
time but not always associated with each other positively. Both are two imperative
problems of all developing countries. Growth facilitates countries to enhance the
accessibilities of basic goods and needs. For example: food shelter, health and
protection. It also permits countries to produce more jobs and better education
slandered, in that way growing the assortment of economic and social choices
obtainable to individuals. For the considerate how to attain growth and how we can

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 maintain it at high levels is the solution to understanding that how we can increase the
living standard of individuals and recover poverty on the continent so that people can
live happy life.

SOLUTIONS OF UNEMPLOYMENT:
Unemployment is one of the major concerns of the
society . Each and every day, more and more people are termed unemployed and this is
not good for any individual and also for the economy of a nation. There are several
reasons that makes any individual unemployed:

 High illiteracy levels

 Changes in seasons of production
 Having disabilities which may hinder you from doing a certain kind of job
 Political instability in a country
 Gender inequalities in certain jobs

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 Poor education system
 Being choosy when selecting a job
 Population explosion
 Increase in number of people being educated and failure of the industry to
expand along with the number
 High inflation rates