Report by Engineering Post
The devastating 2022 floods, persisting political uncertainty, ongoing security situations , resurgence of terrorist activities and external shocks i.e. ongoing Russia-Ukraine War, ongoing Israel’s brutal attacks on Gaza/Palestine quite obviously have direct bearings on Pakistan’s overall macroeconomic stability and outlook.
All these developments resultantly had and continue to magnify the pressures on the country’s workforce and businesses paving a way for an alarming surge in the unemployment rates.
Unemployment means people above a specified age not being in paid employment or self-employment but currently available for work during the reference period.
Pakistan rank’s 9th in the labour force and 6th in population i.e. 241 million as per the Population Census 2023 with annual growth rate of 2.55 percent quite obviously echoed demographic expansion which may lead to increased unemployment rate further in the coming years.
The share of unemployed labour force comprising the youth which was is high as 64 percent of the total labour force of the country.
The major challenges faced by the labour force are the significant rate of youth, not in education, employment, or training (NEET) i.e. 33 per cent , the rate of the unemployed who hold degrees than uneducated ones’, mismatching of demand of skills, education and trainings than supply .
In order to enhance the potential of economic growth and sustainable development through youthful demographic dividend required a strategic emphasis on employment opportunities, skills development , and training.
Investing in Research and Development (R & D) was also quite essential for the long term success and growth of any country.
A mere 0.16 percent of Pakistan’s Gross Development Product (GDP) finds its way into the domestic R & D investment.
This minimal allocation merely reflected a pervasive pattern and raised a red flag on the federal government’s persistent commitment to fostering innovation and pushing industrial progress.
