Muhammad Bilal Tanoli
The Clock Is Ticking: Why Pakistan Needs to Move Now on Youth Unemployment
Pakistan, a country bearing a significant proportion of youth, is at a crossroads as far as its economic growth is concerned. Having a mostly young population, the nation is faced with the grave issue of youth unemployment, one that is increasingly being forced into the spotlight due to its enormous significance to the economy and society in general. Youth unemployment in Pakistan has been a rising concern, fueled by a number of economic, social, as well as political reasons. This article addresses the magnitude of youth unemployment in Pakistan, its causes and consequences, and potential solutions, and critically examines government policies to control this trend.
The Current Situation of Youth Unemployment in Pakistan
According to the Pakistan Economic Survey 2023-24, there are nearly 4.5 million unemployed people in Pakistan, and the majority of them fall under the youth category of 15-24 years. The unemployment rate among this group is 11.1%. Dawn+2Business Recorder+2 This in itself gives one an image of how bad the employment level in the nation is and how the rate of unemployment among young people keeps rising, even though the possibility that they might be well-trained and educated exists. This requires urgent intervention not only to reduce the economic strain but also to prevent social unrest that will be caused if this issue is not stopped.
Causes of Youth Unemployment
One of the main reasons for youth unemployment in Pakistan is that there is a mismatch between what is being offered in institutions of learning and what the labor market requires. The education system, and indeed the higher education system, has come under very sharp criticism for lacking practical training and employer work-related skills. Graduates are not meeting employer demands, thus leading to an oversupply of highly educated graduates without work commensurate with the level of education. Consequently, most youths are underemployed or unemployed even though they have degrees.
Economic uncertainty is one of the primary causes leading to inflation in young people’s jobs. The Pakistan economy has not been stable for some twenty years, and inflation, rising poverty, and volatility in foreign investment have made business expansion difficult. Nobody, no home or overseas business entity, will expand the project or increase employee recruitment in the background of uncertain economic standing. This also impacts the young generation as the majority of the youth are denied an opportunity to participate in the labor market.
Moreover, a lack of diversification of industry in Pakistan limits job opportunities. The economy of the country relies heavily on the textile sector, while others, such as technology and services, are underdeveloped. This provides jobs to only part of the youth while the rest have to encounter the bitter truth of unemployment.
The second main cause of youth unemployment in Pakistan is that there are insufficient good vocational training schemes. While educational certificates are highly valued, they do not necessarily equip young people with the labour market’s required practical training. Less than half have even completed a single vocational qualification of any kind that would more directly lead into labour market careers like construction, computer science or information communication, or accommodation and hospitality services. The next generation, therefore, still remains ill-prepared to serve the requirements of the job market, and its unemployment statistics continue to soar.
Apart from that, gender inequality makes the issue of unemployment even more complex. In Pakistan, social roles and expectations of women disempower working women by keeping them out of the workforce or the professional sphere. This has also made female youth unemployment rates higher than those of men, further exacerbating the plight of already marginalized groups in the labor market.
The Implications of Youth Unemployment
The consequences of youth unemployment are more than economic. The effects of having surplus unemployed youth can be felt in nearly all aspects of society, particularly in social unrest. A generation of youth that never anticipates better employment will become disillusioned, and consequently, there will inevitably be increased crime, riots, and political unrest. This youth disillusionment is also viewed as disbelief in the government and even in the political process.
In economic terms, the inability of youth to enter the labor force results in human capital loss. The youth category is traditionally the driver of economic growth, and should this category does not work or is unemployed, the economy fails to achieve its full potential. Young joblessness is dragging aggregate productivity back, and so Pakistan cannot use its resources to their utmost level and realize its maximum economic output.
Brain drain is also a long-run outcome of joblessness among youngsters. With little scope within the country, youngsters are instead opting for migration out of the country, hoping to utilize better opportunities. Although this could be an advantage for the emigrant, this is a net loss for the country, which misses out on potential skilled human resources that otherwise could drive its growth and development. Brain drain worsens the problem of unemployment, and a vicious cycle is established whereby the brightest young minds are forced to seek jobs in other markets, thus causing a vacuum in Pakistan’s economy itself.
Government Policies and Initiatives
When the government recognized the magnitude of the problem, it implemented various policies and programs designed to decelerate youth unemployment. The Kamyab Jawan Scheme, introduced in 2019, was a move to train and fund youth so that they can initiate their own venture or go for internships. Business loans, technical training, and skill development training are offered to youth under the scheme.
The government also initiated the E-Rozgaar Program, whose vision is to train the youth with IT skills so that they would be able to utilize the expanding global digital economy. With the demand for online services continuing to grow, especially in the post-pandemic era, the program provides youth with an opportunity to be freelancers or entrepreneurs in the digital economy.
In addition to these initiatives, Pakistan has also seen the introduction of the Benazir Bhutto Shaheed Youth Development Program and the Prime Minister’s Youth Program, both of which are entrepreneurship and skill-development-oriented. Both these programs have been created with the aim to fill the skill gap and provide an opportunity to youth to become economy-citizens.
But even though the programs themselves are well-intentioned, there are quite a few problems in their execution and deployment of resources. No proper monitoring and evaluation system has been in place, and as a result, inefficiencies have been experienced, and political meddling and interruptions are seen in most of the programs. Also, despite government attempts, the size of the crisis of unemployment is so huge that, on an individual basis, these programs are not sufficient to handle the situation.
In order to be able to effectively tackle the youth unemployment issue in Pakistan, there needs to be an integrated strategy. There needs to be government reforms in education that align the curriculum with the requirements of the labor market and vocational training within mainstream education. By this method, the youth will be provided with the necessary capacities to enable them to function well within the labor market.
Apart from that, the economy also needs to invest more in new sectors such as technology, clean energy, and services. Diversification of the economy helps in providing different types of jobs for the youth. Through increased access to funding and entrepreneurship, along with mentorship, youth are incentivized by the government to develop their own employments, hiring not only themselves but also other individuals.
Apart from this, gender equality must be accorded more significance, and equal employment opportunities to which young women have access. All these are achievable with equality-promoting policies in the work environment, caring for working women, and creating a secure and inclusive environment in the workplace.
Lastly, to make Pakistan address youth unemployment in Pakistan, the country must boost its institutional capacity to monitor and assess job programs. It would assist in identifying performing programs and expand them, and exit non-performing ones. The government also needs to approach the private sector, civil society, and schools more forcefully in order to craft an integrated strategy to address youth unemployment.
Recommendations to Mitigate Youth Unemployment in Pakistan: A Way Forward
One of the largest issues presently facing Pakistan is youth unemployment. Both male and female youths are struggling to find safe, gainful jobs since a large portion of the population of the country falls in the 15 to 34 age group. This has implications not just on the personal future of the youths but on the economic development and national stability of the country at large. While the issue is of a multilateral kind, there are several practical suggestions through which youth unemployment can be reduced and a bright future ensured for the youth of Pakistan.
- Recasting the Educational System
The first prime solution to the issue of youth employment is rethinking/recasting the education system. There is a wide gap between the offerings of educational institutions and the current market demand. The government must put more focus on ensuring alignment of curriculum and market needs at academic levels, especially in information technology, engineering, and healthcare. Both practical skills and theoretical education should be emphasized, enabling the students to be well-suited to excel in the employment market. Moreover, integration of vocational and technical education at a lower level of education may allow students to gain the industry-based competencies needed. - Encouraging Vocational and Technical Education
Pakistan’s education system is academically focused with little emphasis on vocational and technical education. This results in a mismatch between graduates’ qualifications and the needs of the labor market, especially in sectors like manufacturing, construction, and services. The government must invest in the development of vocational training facilities and training programs that cover the evolving needs of the labor market. These facilities must be equipped with the latest technology and programs reviewed periodically, with the inclusion of industry representatives. With a focus on the development of skills with immediate practical use and career relevance, the government will be able to equip the youth with the capacity to pursue labor market opportunities in both formal and informal economies. Besides, integrating training in ICT skills such as web development, internet marketing, and programming software in vocational education is likely to offer alternative opportunities for the youth in the high-growth ICT industry. - Entrepreneurship
Promoting entrepreneurship and self-employment is one of the most critical means of addressing youth unemployment. Pakistan’s youth population has potential but lacks proper guidance and facilities to transform their imagination into innovative businesses. The government can step in by providing seed money, low-interest loan access, and mentorship under youth programs. These actions will reduce economic barriers in setting up a business and maximize opportunities for success for youth entrepreneur startups. Second, offering tax incentives, ease of registration of business, and reducing red tape to create an entrepreneurial environment will encourage a higher number of youth to become entrepreneurs. Initiatives such as “StartUp Pakistan” need to be intensified and advertised well enough so that the youth are provided with the facilities with which they can thrive in business. - Public-Private Partnerships
The government can also collaborate with the private sector in order to create jobs for the youth. Private enterprises can be engaged to start internship and apprenticeship programs to give youth the practical experience that will make them more employable. Private-enterprise firms can also help formulate industry-based training programs, which can fill in the gap between education and actual job market demand. Public-private partnerships may also be applied to launch programs of industry development, like technology, tourism, and agriculture, that can provide many jobs to young people. All such partnerships must be with the motive of providing sustainable long-term employment and not low-wage or temporary employment that would not be in the best interests of the country’s economic development as a whole. - Rural Area Investment
Youth unemployment is a more critical issue in rural areas, since job and educational opportunities are less easily available. The government must, therefore, invest in rural industry, training institutions, and infrastructure. Establishing Special Economic Zones (SEZs) and industrial parks will provide rural youth with stable job opportunities and boost the local economy. Besides these, rural entrepreneurship development in agriculture, food processing, and environmental tourism can offer rural community-based job opportunities. Entrepreneurship development initiatives to promote the youth in rural regions have the capability to counter brain drain of the youth towards urban cities for work purposes, thereby imparting balance in economic development throughout the country. - Women’s Empowerment in the Workplace
Gender sensitivity in the workplace is one of the most significant determinants of unemployment, particularly among young women. There are a number of constraints against work among young women in Pakistan, including social culture, mobility restrictions, and access to education and training. The government needs to ensure that employment policy is gender-sensitive through offering flexible terms of employment, childcare facilities, and the abolition of work discrimination. Additionally, initiatives aimed at empowering women entrepreneurs through advocacy programs, mentorship, and access to funding can significantly close the employment rate gap between males and females. Encouraging females into STEM through scholarship programs and advocacy campaigns can also contribute greatly to ensuring diverse and inclusive recruitment practices. - Tackling the Informal Economy
Most of Pakistan’s younger generations work in the informal economy, where job security, remuneration, and career progression opportunities are limited. To solve this issue, the government will need to implement policies that formalize informality by providing incentives to companies that move to the formal economy. These can be achieved in the form of tax exemptions, streamlined registration processes, and increased access to social security benefits for informal workers. Secondly, the government must introduce policies that will equip informal workers with skills that will enable them to move into more secure formal employment. In addition to improving employment security for young workers, this will also bring in additional revenue for the government to invest in job programs. - Strengthening Social Safety Nets
Youth unemployment normally results in social unrest and disorder, especially when youths feel they have no choice or hope; they can resort to adverse outcomes. To forestall this, the government may implement payment of unemployment benefits to youths who fail to find work. These could be followed by schemes of training for skills where youths can gain while on benefits. Moreover, young unemployed individuals need to be offered mental health interventions because prolonged unemployment can lead to depression, stress, and anxiety. Motivating youth during this critical stage will enable them to maintain a positive outlook and stay devoted to the recruitment process. - Constructing Labor Market Information and Job Matching
One of the most serious problems among young people is restricted access to current and relevant information regarding job vacancies. The government needs to make it easier to construct and maintain an internet database with job vacancy information, internships, apprenticeships, and training. The platform needs to be accessible and updated at regular intervals so that young people can access job vacancies in their areas of interest. Other than that, supply of job-matching services by way of employment agencies could help provide a connection between youths and prospective employers, reducing search time for finding a job and increasing chances of securing acceptable employment.
