Editorial
The Pakistan Bureau of Statistics (PBS) has revealed a shocking estimate in the 2023 Digital Population and Housing Census, showing the national unemployment rate has surged to a staggering 22%. This marks an alarming increase compared to the previous unemployment rate of 6.3% recorded in the 2020-21 Labour Force Survey. This dramatic rise points to a substantial 315% jump in unemployment within just three years, with the number of unemployed individuals increasing from 4.5 million to 18.7 million.
The labour force in Pakistan has grown by 6.7% annually, from 71.8 million in 2020-21 to 85 million in 2023. However, the number of employed individuals has decreased by 1.1 million, leading to a sharp rise in unemployment. This trend may be partly due to the lasting impacts of recent floods, particularly on rural areas, where the unemployment rate rose to 24.6%, a substantial increase from 5.8% in 2020-21.
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Gender disparities in the labor market are also stark. The unemployment rate for women has jumped to 39.3% in 2023, highlighting severe gender inequality in employment opportunities. Furthermore, the youth unemployment rate, particularly for individuals aged 15 to 24, reached 29%, with over 16 million youths neither participating in the labor force nor receiving education. This has led to an alarming increase in the number of “idle youth” to 22.7 million in 2023, representing a huge loss of potential human resources.
The dramatic rise in unemployment, especially in provinces like Balochistan and Khyber Pakhtunkhwa, and among females and youth, underscores the need for urgent attention. The PBS must provide a clear explanation for why Pakistan’s unemployment rate has reached such an unprecedented high.
