ISLAMABAD: In a troubling sign for the nation’s growing economic instability, Pakistan’s unemployment crisis has deepened, with the jobless rate climbing from 6.3 percent to 6.9 percent between FY2021 and FY2025, pushing an additional 1.4 million people into unemployment.
According to the Pakistan Bureau of Statistics (PBS), the LFS 2024-25 survey – conducted at the provincial level – shows the number of unemployed individuals has climbed from 4.5 million in 2020-21 to 5.9 million in 2024-25.
Of the 5.9 million jobless individuals, 3.8 million are males and 2.1 million are females, marking a particularly concerning gender disparity.
At the survey launch, Federal Minister for Planning Ahsan Iqbal highlighted that this year’s survey aligns Pakistan with global labour standards set by the 19th International Conference of Labour Statisticians (ICLS), with 120 out of 193 countries already on board. He stressed the importance of these standards for future labour reforms.
The data shows a sharp rise in unemployment across both urban and rural areas. While male unemployment has edged up from 5.5 percent to 5.9 percent, the female unemployment rate has surged from 8.9 percent to 9.7 percent over the past four years. The gender gap is widening, with women facing increasingly severe barriers to finding work.
Unemployment has risen across both urban and rural regions. In urban areas, the rate climbed from 7.3 percent to 8.0 percent, while rural unemployment grew from 5.8 percent to 6.3 percent.
Nationally, the unemployment rate stands at 7.1 percent, with 6.0 percent for men and a striking 10.5 percent for women. Urban areas face a higher unemployment rate of 8.2 percent, compared to 6.5 percent in rural areas.
The Labour Force Participation Rate (LFPR) has seen a modest rise, increasing from 44.9 percent in 2020-21 to 47.7 percent in 2024-25.
Male participation grew from 67.9 percent to 69.8 percent, while female participation rose from 21.4 percent to 24.4 percent. Rural areas saw a more significant jump, from 48.6 percent to 52.3 percent, while urban areas experienced a smaller increase, from 38.8 percent to 40.8 percent.
The labour force has grown significantly, expanding from 71.8 million in 2020-21 to 85.6 million in 2024-25, adding an average of 3.5 million people annually.
The number of employed individuals has increased by 12.4 million, from 67.3 million to 79.7 million, though this excludes 2.48 million “own-use producers,” bringing the total employed to 77.2 million. Of these, 59.4 million are male and 17.8 million are female.
Despite this overall employment growth, the number of unemployed individuals has also risen, with a net increase of 1.4 million jobless persons. As the workforce continues to expand, unemployment remains a persistent challenge.
The labour market has experienced notable shifts in sectoral employment. The share of workers in agriculture, forestry, and fishing has decreased from 37.4 percent to 35.1 percent, while sectors like construction, wholesale and retail trade, transport, and community services have seen growth.
Notably, employment in wholesale and retail trade has risen from 14.4 percent to 15.5 percent, and in community, social, and personal services from 16.0 percent to 17.4 percent.
Gender-wise, male employment is largely concentrated in wholesale and retail trade (20.1 percent) and agriculture (24.5 percent), while women dominate agriculture (61.4 percent) and community and social services (20.3 percent).
Copyright Business Recorder, 2025
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