Pakistan’s unemployment rate has risen to 7% from 1.5% over the past decade, according to a report by the Ministry of Planning.
The report attributes the high unemployment rates to insufficient GDP growth, which fails to meet the requirements of the health and education sectors.
The report highlights the country’s inability to generate enough jobs, especially for women and youth, and notes that unemployment is higher in Pakistan than in India and Bangladesh.
With an annual population increase of 5 million people, the country faces increasing challenges in addressing poverty and meeting basic needs. The Planning Commission estimates that Pakistan needs to create 1.5 million jobs annually to meet employment requirements.
To confront the worsening crisis, the Planning Committee recommends reducing youth unemployment by at least 6% and reducing unemployment among women by 17%. The report also highlights the barriers Pakistani women face in accessing employment opportunities compared to their counterparts in neighboring countries.
The report stresses the urgent need for economic reforms to address unemployment and inflation, stressing the need for strong strategies to enhance job creation and price stability in the country.