PMS 2020 Solved Pakistan Affairs Past Papers | Note on Unemployment in Pakistan
The following question of PMS Pakistan Affairs 2020 is solved by Miss Iqra Ali, the best Pakistan Affairs Coach, on the guided pattern of Sir Syed Kazim Ali, which he taught to his students, scoring the highest marks in compulsory subjects for years. This solved past paper question is uploaded to help aspirants understand how to crack a topic or question, how to write relevantly, what coherence is, and how to include and connect ideas, opinions, and suggestions to score the maximum.
Outline
1-Introduction
2- Historical Background of Unemployment in Pakistan
3-Reasons for Unemployment in Pakistan
- ✓Small Economy
- ✓Skill Gap
- ✓Policy Inconsistency
- ✓Labor Market Saturation
- ✓Lack of Industrial Diversification
- ✓Entrepreneurial Barriers
- ✓Energy Crisis
4-Solutions to Mounting Unemployment in Pakistan
- ✓ Curriculum Reforms
- ✓ Economic Diversification and Industrial Growth
- ✓ Policy and Governance Reforms
- ✓ Access to Finance
- ✓ Digital Skills Training and Tech Startups
5-Conclusion
Answer to the Question
Introduction
Unemployment, and in particular the youth unemployment, is a common evil in developing countries, with Pakistan also one of the countries that suffers from massive unemployment. The reasons of unemployment in the country are quite diverse, including a small economy, a skill gap, policy inconsistency, labor market saturation, and a lack of industrial diversification. However, the issue of unemployment can be addressed by reforming curriculum, diversifying the economy, giving easy access to credit, and providing opportunities for digital skills training and tech startups. In short, the issue of unemployment has been haunting Pakistan for decades, but adopting the aforementioned measures can help the nation reduce its intensity.
Current Status of Unemployment in Pakistan
Unemployment in Pakistan currently stands approximately around 7-8% as of 2024. The figure does not effectively capture the extent of underemployment in the country and the employed individuals in the informal sector. The youth unemployment rate is even more shocking. According to the Economic Survey 2023-2024, the youth aged 15-24 have the highest unemployment rate of 11.1%, followed by 7.3% unemployment rate among individuals aged 25-34. Additionally, the unemployment rate among females is even greater with 14.4 % of females unemployed.
Reasons of Unemployment in Pakistan
- Small Economy
Pakistan has one of the lowest Gross Domestic Product (GDP) per capita in the South Asian region. Moreover, the slow economic growth has been one of the major reasons for the mounting unemployment in the country. Due to the low pace of economic growth, the country cannot accommodate the bulk of its citizens in the market. As a result, the state suffers from a high unemployment rate.
- Skill Gap
A significant disconnect exists between the education system and labor market requirements. As a result, many educated individuals cannot secure a job in the market as they do have theoretical knowledge but totally lack the practical skills for a job, leading to a high unemployment of educated individuals in the country.
- Policy Inconsistency
Frequent changes in government bring changes in the economic and industrial policies of the country, which, in turn, create an uncertain environment for businesses and foreign investors. As a result, new jobs are not created.
- Labor Market Saturation
With a population growth rate of approximately 2%, the labor market cannot accommodate the influx of a bulk of new entrants in the market. As a result, a greater portion of the new entrants stay unemployed.
- Lack of Industrial Diversification
Overreliance on agriculture and textiles, without expansion in other sectors, limits creation of new employment opportunities. So, the absence of diversified industrial base thwarts a country’s potential to create new employment opportunities that can accommodate the bulk of unemployed youth in the country.
- Entrepreneurial Barriers
Emerging entrepreneurs face difficulties in obtaining capital for their startups due to an underdeveloped financial sector. As a result, it is difficult for them to start and expand their small startups, which limits the creation of employment generation.
- Energy Crisis
Due to the frequent electricity and gas shortages, industrial and commercial activities have been disrupted, resulting in reduced production and frequent layoffs. Moreover, due to the rise in energy prices, the operational cost of running businesses has greatly increased, preventing expansion of established firms and new hirings.
Solutions to Mounting Unemployment in Pakistan
- Curriculum Reforms
There is a dire need to reform the curricula of education programs to align with the market needs, which can address the issue of skill match. Moreover, there is a need to embed entrepreneurship modules in the curricula to promote self-employment through small startups, which can also lead to increased job creation.
- Economic Diversification and Industrial Growth
There is a need to diversify the economy by investing in other sectors, like the manufacturing sector and the tourism sector, apart from the agriculture sector. Additionally, the state should lend financial and technical support to small and medium enterprises (SMEs) to boost production in order to create employment, particularly in rural areas.
- Policy and Governance Reforms
There is a need to have consistent economic policies in order to attract domestic and foreign investment in the country. Moreover, ensuring transparency and curbing corruption can build investors’ confidence, which will promote new business ventures in the country that will translate to economic growth and new job creation.
- Access to Finance
There is a need to increase microfinance services throughout the country to support emerging entrepreneurs, particularly women. An easy access to capital can encourage people to initiate small startups that can lead to big businesses in future, employing a great bulk of the unemployed section of the community.
- Digital Skills Training and Tech Startups
There is a need to provide digital literacy to the people and develop digital skills in the youth to help them get jobs in this technological era. Moreover, the state should create incubation centers to boost tech-based startups, which have the potential to generate a bulk of jobs in this era of science and technology.
Conclusion
Unemployment rate in the country is soaring day by day as its causation factors, such as the skill gap, policy inconsistency, labor market saturation, and lack of industrial diversification, continue to perpetuate. However, the issue can be addressed by adopting some prudent measures, like reforming curriculum in education systems to align with market needs, diversifying economy, bringing governance reforms, and providing easy access to finance, which will, in turn, create a bulk of jobs that can decelerate the surging rate of unemployment in the country.
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