Pakistan Economic Survey fails to calculate unemployment rate for current year

ISLAMABAD: The Economic Survey 2024-25 failed to calculate the unemployment rate for the current year and instead cited the rate prevalent four years ago in 2020-21: 6.3 percent from Labour Force Survey (LFS) 2020-21.

The reason noted in the report is that the LFS for 2022-23 could not be undertaken due to the engagement of PBS with the 7th Population & Housing Census. However, work on LFS 2024-25 is under process.

The LFS survey reveals that in 2020-21 youth (aged 15-24) had the highest unemployment rate of 11.1 percent, with 10.0 percent for males and 14.4 percent for females. The second highest unemployment rate was seen amongst 25-34 year olds, with a rate of 7.3 percent.

PBS conducts first digital census: Around 7.8pc of total population unemployed

Among this group, 5.4 percent of males and 13.3 percent of females were unemployed leading to the conclusion that unemployment is more prevalent among females, especially those between 15 and 24 years of age.

The survey mentioned that during 2024, the BE&OE and the OEC registered 727,381 workers for overseas employment.

According to BE&OE, more than 62 percent (452,562) of Pakistani workers moved to Saudi Arabia for employment, followed by Oman (11 percent), to earn a living. UAE employed 64,130 Pakistani workers (9 percent) while Qatar offered jobs to 40,818 individuals (6 percent). Bahrain and Malaysia hosted 25,198 workers (3 percent) and 5,790 workers (1 percent), respectively.

In 2024, the highest number of workers who went abroad for employment was from Punjab (404,345), followed by Khyber Pakhtunkhwa (187,103), Sindh (60,424), and Tribal areas (29,937).

The skill composition of Pakistani emigrants in 2024 continues to be dominated by unskilled and semi-skilled labour, with relatively low representation from highly qualified and highly skilled professionals. According to the data, 50 percent of emigrants fall under the unskilled category (366,092), while 35 percent (255,706) are skilled workers. Although there has been a slight decline compared to 2023, unskilled labour remains in high demand globally, particularly in construction, domestic work, and agriculture sectors.

The total population of Pakistan according to Seventh Population and Housing Census (2023) has reached 241.5 million; growing at 2.55 percent annually. The population comprises 124.32 million (51.5%) males and 117.15 million (48.5) females.

A significant share of Pakistan’s population is young, with 26% aged 15-29 years, while 53.8% fall within the working-age group of 15-59 years. This demographic dividend presents a unique opportunity for economic expansion and development. However, to fully capitalize on this advantage, strategic investments in education, skill development, and vocational training are essential.

Copyright Business Recorder, 2025