42pc Pakistanis expect rise in unemployment in coming months, reveals Survey

More than 42 percent of Pakistanis expect unemployment to rise in the coming six months, as compared to only 30pc expecting the opposite as per the third report on Pakistan Consumer Confidence Index by Dun & Bradstreet and Gallup Pakistan.

As per the report, the Consumer Confidence Index (CCI) improved marginally by 1.8% in Q4 2020 as compared to Q3 2020. This was driven by a relative improvement in the current situation of household savings as well as household financial situation as expressed by the respondents. This can be largely attributed to the resumption of normalcy in business activities.

Overall CCI increased to 90.3 in Q4 from 79.0 in Q1, up 14.3% as the improvement in the current situation was magnified by a recovery from a low base.

However, consumers continue to be cautiously optimistic on account of prevailing uncertainty and resurgence in COVID-19 cases. Thus, future expectations have deteriorated for the first time since Q1 2020.

Optimism has improved for the household financial situation, country’s economic situation, and unemployment, while it has declined for household savings. This is primarily driven by consumers’ concerns about the future. This could have a cascading effect on asset-related investments in the country, and overall spending by consumers.

Overall household financial situation displayed the greatest optimism (NI = 109.3) in Q4 owing to an improvement in the current situation (NI = 96.2) after the lifting of the lockdown.

Consumers remain skeptical and concerned about unemployment in the country as overall confidence in the unemployment situation remains the lowest (NI = 72.3) amongst all parameters. However, unemployment is the only parameter with a marginal increase (1.4%) in future expectations in Q4.

Consumers’ sentiments regarding the price situation in the country are at its lowest since Q1 2020 on account of disrupted incomes and inflation. In contrast, consumers have highlighted optimism regarding future Income situations.

The recent survey was carried out among a sample of 1,634 men and women in urban and rural areas of all four provinces of the country, during December 2020.