Pakistan’s unemployment rate rose to 7.1% in 2024-25, up from 6.3% a year earlier, even as the country’s economy returned to growth, according to the Pakistan Economic Survey 2025-26 released by the Finance Ministry on Thursday.
According to the latest Labour Force Survey 2024-25, released in the Economic Survey 2025-26, the working-age population increased from 159.8 million to 179.6 million, reflecting Pakistan’s expanding labour supply.
The employed labour force also rose from 67.25 million to 77.2 million, indicating an increase in employment opportunities during the period.
“At the same time, the number of unemployed persons increased from 4.51 million to 5.9 million, with the unemployment rate rising from 6.3% to 7.1%, highlighting the need to further accelerate job creation in line with labour force growth,” read the report.
The labour force participation rate also improved from 44.9% to 46.3%, indicating greater engagement of the population, including youth and women, in the labour market.
Agriculture, forestry, and fishing remained the largest source of employment, although their share declined from 37.4% to 33.1% as employment expanded in services, trade, construction, and other non-farm activities.
“This pattern is consistent with a developing economy in transition, while also underscoring the continued importance of agriculture for livelihoods and food security,” read the report.
Further, manufacturing employment remained almost unchanged, slightly decreasing from 14.9% to 14.8%.
This shows that the industrial sector has not expanded fast enough to absorb many workers.
In contrast, the construction sector showed modest growth, rising from 9.5% to 9.9%, likely due to infrastructure development, housing demand, and public investment projects.
The wholesale and retail trade sectors experienced noticeable growth, increasing from 14.5% to 16%. “This rise reflects expanding commercial activities, urbanisation, and the growth of small businesses and markets,” it added.
Similarly, transport, storage, and communication employment increased from 6.2% to 6.6%, indicating rising demand for logistics, delivery services, and communication networks in a more connected economy.
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