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TOPIC

Unemployment in Pakistan
Causes and Way Forward

Presented by:
WAQAS MUNIR
Stenographer (15)
Motor Transport Officer-I, S&GAD

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 Definition of Unemployment
 Unemployment is defined by
the Bureau of Labor
Statistics as people who do
not have a job, have actively
looked for work in the past
four weeks, and are currently
available for work. Also,
people who were temporarily
laid off and were waiting to
be called back to that job are
included in
the unemployment
statistics.

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 What is Unemployment
 Unemployment is a
worldwide and global issue.
 Unemployment is the state
in which a person is without
work, available to work, and is
currently seeking work.
 Workless people are always
dangerous to country. They
are burden of country.

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Ratio of Unemployment in Pakistan
 Unemployment Ratio in Pakistan remained unchanged at 5.90 percent
in 2016 from 5.90 percent in 2015. Unemployment Ratio in Pakistan
averaged 5.47 percent from 1985 until 2016, reaching an all time high of
7.80 percent in 2002 and a record low of 3.10 percent in 1987.
 Pakistan is one of those countries that are facing this giant issue
through the whole economy is at the edge of destruction. According to
few surveys, there are about 2 million people are unemployed in
Pakistan which really dangerous sign for Pakistanis

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 Causes of Unemployment
There are some main causes of unemployment in Pakistan
which is as under:-

 Energy Crisis and Failure of Industries

 Economic Cause
 Financial Cause
 Faulty Education Lack of Vocational Institutes

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 Energy Crisis and Failure of Industries

More than 70% industrial units have been closed due to energy crises
According to media reports, the industrial production has gone downwards
since last two years due to energy crises in the country. Economy experts
believe that at a time when the country is plunged into difficulties, with the
energy shortages worsening; unemployment in the failing industrial sector is a
major concern.

 Economic Cause
The main cause of unemployment is very clear, even to the person who has not
read about the economic theories that because of unemployment people will
be not be having money to spend and their consumption will be less, means
less demand so there will be less production ultimately it will effect again on
employment.
 Low Industrial growth rate is 1.7% in Pakistan
 Number of industries is not increasing in Pakistan
 Lack of industries means less opportunities of employment

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 Financial Cause
It is difficult to manage the personal business and self employment due
to absence of easy credit facilities accordingly, shortage of credit
facilities is also a main cause of unemployment.
There is shortage of capital that leads to low level of saving and
investment in Pakistan. It results in low rate of capital formation and
caused in unemployment.
 Faulty Education, Lack of Vocational Institutes
Because of limited number of technical, vocational and professional
institutions, the people of Pakistan remain unemployed. About 5.5%
million children are out of school. Pakistan spends 2.4% GDP on
education. At national level, 89% education expenditure comprises of
current expenses such as teachers’ salaries, while only 11% comprises of
development expenditure which is not sufficient to raise quality of
education.

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 Way Forward
It is very difficult for Government to overcome Unemployment, but
according to me some steps that Government should have to take, or
simply we can say that the solutions of unemployment in Pakistan are:
 To run industries properly, Energy crisis should be demolished by making
dams and promoting nuclear plants.
 The people also should aware about the economic theories to spend their
money rightly in the market.
 The Government should take steps and to reduce unemployment is to do
proper planning regarding easy loan credit to the people who invest money
into their business.
 Institutions for training and technical skills should be established, where
people should be offered skilled program.
 The first thing that Government should have to do, in order to reduce
unemployment is to do proper planning regarding jobs.

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 Conclusion
 It is concluded that there are two important elements that
can reduce unemployment;
 To use Labor intensive industries more.
 Adapting the Self-Reliance policies.

 Country’s Prosperity and Progress is not possible without the

reduction in the unemployment.

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 Bibliography
 https://www.thebalance.com/what-is-unemployment-3306222
 https://www.investopedia.com/terms/u/unemployment.asp
 https://tradingeconomics.com/pakistan/unemployment-rate
 https://www.slideshare.net/HAMMAD96/unemployment-in-
pakistan-6447266?from_action=save
 https://nation.com.pk/16-May-2016/causes-and-effects-of-
unemployment
 http://www.ipripak.org/education-system-of-pakistan-issues-
problems-and-solutions/

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THANKS

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