Job Market Concerns in Pakistan

QriosityNet
5 min readMar 30, 2022

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According to an article published by Pakistan Today, ‘Unemployment in Pakistan and the Way out of it’, the Pakistani rate of unemployment has increased by 6.5 %, and we can say that one out of every 10 persons in the country is experiencing unemployment and lack of career opportunities.

Another article, ‘Job creation as the biggest challenge for Pakistan after Health Crisis’ published by ANI reflects that Pakistan strives to generate career prospects for 2.5 million individuals who have lost their jobs due to the COVID-19 epidemic, protecting and creating jobs has become the second-largest concern after the health crisis. Every year, nearly two million people enter the labour market, go through their concerned job test but remain jobless or underpaid, irrespective of being graduated from a renowned institute or having a remarkable academic profile.

The Pakistan Development Review’s research article, ‘Labour Market Issues in Pakistan’, puts forward that the economy of Pakistan is too weak to be able to absorb productively the job force and all indications point towards a worsening of job market conditions in the future.

On another level, the employment market scenario is critical too. The working conditions of individuals who are fortunate enough to find jobs or internships are not satisfactory, but rather deplorable and toxic. A large proportion of professional workplaces have long working hours and poor working conditions. A handful of them also poses workplace safety and health concerns. The issue is worsened by the fact that a huge proportion of workers are denied fundamental human rights. These inappropriate career circumstances impede and delay employers’ ability to carry out the responsibilities of their jobs effectively and efficiently. As a result, these unfavourable working conditions are not only unjust to employers but also to the quality and quantity of products delivered by the concerned firm.

Additionally speaking, those employed are underpaid for their work due to Pakistan’s poor economic status, highlighting the fact that Pakistan’s economy must grow by 7–8 % each year to provide job opportunities to nearly two million new entrants into the job market, as well as pay existing employees fairly in accordance with the work they deliver. This issue of being underpaid despite of excelling the job test can be gauged by the statistics established by the Danish Trade Union Development Agency Pakistan Labour Market Profile 2021/2022 according to which the latest minimum wage increase at the joint provincial level is PKR 17,500 (US$166) per month in 2019/2020 to some diverging levels in 2021: Punjab and Khyber Pakhtunkhwa reached PKR 21,000 (US$132) and Sindh listed a significant hike to PKR 25,000 (US$158). Meanwhile, Balochistan did not raise the minimum wage at jobs that stood flat since 2019. These salaries are set either in agreement with social partners or unilaterally at the provincial level.

On average, career income is barely adequate to cover half of a quarter of the employer’s livelihood expenditures due to which other family members are compelled to work and as a result organizations hire them at any wage and under any conditions to which they consent. Another gory fact is that existing jobs and employment rules aimed at protecting employees’ rights and promoting their well-being are ineffectively administered. Another issue is the strategies employed by the employers. They successfully deny employees’ legal rights in several situations, sometimes in collaboration with officials from the concerned departments. As a result, savings are made at the expense of worker wellbeing and poor working conditions.

It also proposes the concern that male employees in Pakistan earn about 18% more than their female counterparts on average across all sectors. This throws light on the sexist culture by which the professional world of employment is also infected. However, workers in the widespread informal economy often do not comply with the wage regulations due to a lack of awareness or due to being free from bearing the consequences of violating these set rules and regulations.

Furthermore, regardless of whether you work in the private or public sector, the culture of nepotism (sifarish) prevails due to which hardworking and talented individuals are unable to get decent jobs or internship opportunities due to a lack of references or sifarish. So, most organizations do not hire job or internship seekers on the basis of merit.

We must also pay attention to the current dire situation, in which jobless individuals, regardless of their socioeconomic status or moralistic values, are posing a threat to the nation’s well-being. This is because the underpaid but overworked or unemployed youngsters are becoming frustrated at their inability to satisfy their household’s needs and move on with their lives. As a consequence, drug addiction, theft, violence, and a variety of other social deviants are all emerging amongst these people.

Not only has unemployment or unjust conditions at jobs caused havoc and insecurity in the state but it has also caused psychological distress and suffering. People are becoming psychologically depressed, so much so that according to the statistics 136 people committed suicide just because they couldn’t cope with the tragedy of being unemployed and being unable to make both ends meet.

Simultaneously, we cannot deny that even besides being fresh qualified graduates, a significant number of youth lacks the practical skills which are required in the professional world of today’s advanced technological era. Considering this technological boom, up-skilling and re-skilling of the deployed staff are also required as part of the performance enhancement demanded in the digitized era of career today. This emphasis on today’s digitized and technologically advanced era also highlights a worrying aspect of unemployment which is the concentration of unemployment amongst the youth. Due to this technological advancement and updated requirements, professional work is now more dependent on digitized machinery and computer software for which organizations hire less number of employees for their handy skills because job seekers are required more for controlling and running this automated machinery. This has led to the under-utilisation of manpower and is being manifested in the form of under-employment. Due to the fast-paced automated processes, there is more than a tenth of the employed find their work unable to keep them busy for 35 hours a week [FBS (1994)].

According to an article published in Pakistan Today titled “Unemployment in Pakistan and the Way Out of It,” there are three key reasons for unemployment: economic, social, and financial. Advanced technology, agricultural mechanization, poor industrial development rates, and a drop in foreign employment are all economic issues that require an immediate response. The second category includes societal factors such as high population, widespread illiteracy, a lack of technical education, nepotism, and political instability. The third category of factors is financial, which includes a lack of funds and access to credit.

Considering all the issues faced by job seekers and job employees in today’s job market of Pakistan, these problems must be addressed in order to hire deserving individuals for their potential designations, to rid the job market of unjust recruiting attitudes, and to fill in productivity shortages in the organizations of Pakistan.

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QriosityNet
QriosityNet

Written by QriosityNet

A professional network for students that provides them career growth opportunities through internships, jobs, admissions, scholarships and career coaching.

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