A study on the causes of youth unemployment in Pakistan

Wazir Arif Hussain

School of Public Administration

China University of Geosciences, Wuhan

Arifwazir218@.cug.edu.cn

Abstract

Youth unemployment is a big issue of Pakistan, it is need to find out the causes of youth unemployment. The data for this paper was collected from secondary sources using previous researches, official’s documents, newspapers and journal articles. The purpose of the paper is to investigate the major causes of youth unemployment and the important factors of youth unemployment in Pakistan. The research gives information of various causes of youth unemployment in Pakistan. The causes of high rate of youth unemployment’s are , the lack of properskills, low level education, poverty ,lack of capital ,corruption, favouritism in politics and high rate of population growth in pakistan.so it is strongly recommend to government should prepare plan for the provision of proper skill ,to motivate people for investment ,government should create labour market which will better for youths employment, provide vocation training to improve youth skills and government should invest on education to produce good product which fulfil the industry requirement.

Key words: youth unemployment, causes of unemployment, effects, solutions.

Introduction

Youth unemployment is a global issue, there are 185 million people unemployed around the world and half of youth unemployment age between 15 to 24 years. (Blessio 2016). According to the World Bank the definition of youth unemployment “Youth unemployment refers to the share of the labor force ages 15-24 without work but available for and seeking employment”. The youth unemployment rate is increasing in Pakistan, in 2015 the rate of youth unemployment was 6.82%, and in 2016 it was 7.3% and in 2017 reached at 7.68%.(T. w. Bank 2018).The individual who has ability and the will to do work, but they do not get job due to lack of opportunities are in the category of unemployed. The latest situation, Pakistan is facing large number of problems, one of the main problem is unemployment. In Pakistan the ratio of unemployed persons are more than 12% which means 113 million peoples. The unemployment rate is increasing day by day, according to the survey of labour force for, 2008-09 the unemployment rate increased from 52% to 55% unemployment rate as 15%. (Sumera Akram 2012).

In 2011 the Federal Bureau of Statistics conducted survey by the collaboration of Labour Force Survey, according to the survey of federal bureau of statistics,both males and female’sunemployment has been increased from 5.6% in 2009 to 6% in 2011. According to the( LBF survey ,2011) females unemployment rate is increase as compare to males, females unemployed 8.9% and males 5.1%. There are many reasons of youth unemployment in Pakistan, one of the reason of unemployment in Pakistan is rapidly increasing population growth in Pakistan. Pakistan is one of the highest population growth country in the world. The annual rate of papulation growth rate of Pakistan is 2.1% which is highest population growth rate in the world. Resources are decreasing day by day and population is increasing. (khaleek 2013).

One of the main reason of unemployment in Pakistan is the insufficient methods of production system in agriculture. According to the World Bank Pakistan GDP share of agriculture is decreasing, in 2013 GDP share of agriculture was 23.8%, in 2014 23.6% and in 2017 22.9%.(Bank 2018).Pakistan is agricultural country, the agriculture plays an important role in Pakistan economy, and there are two important factor of unemployment in agriculture sector in Pakistan. Firstly, there is no latest technology in agriculture sector in Pakistan. Secondly due to the low budget there is no proper training system in agriculture sector in Pakistan. (Sumera Akram, Unemployment Reasons and Its Impact on Pakistan Economy 2012).

In developing countries it is big problem the qualified educated person didn’t job easily they have to wait for long time to get job. Corruption is the main factor of youth unemployment in Pakistan. (Blaug 1970). One of the main reason of educated unemployed is due to the lack of career orientations.

Pritchard studied says that during the 1974-90 in England the suicide ratio was very much, the study found that the reason of increase suicides as a result of socioeconomic changes. During 1990 in British male suicide is increase as compared to female due the unemployment. (Khan 2016).

Aims and objective

Ø To investigate the major causes of youth unemployment in Pakistan.

Ø To analysis the government policy about youth unemployment in Pakistan.

Ø To find the factors of youth unemployment in Pakistan

Research Methodology

For the purpose of the paper data has been collected from the secondarysources of precious researchers, government’s documents, newspapers and journal articles.

The concept of unemployment

Every economy is divided in two category by both the active and inactive populations. According to the international labour organization (ILO) the numbers of the economically active population who are want to do work but there is no opportunity to get job is called unemployed. Fajana said that, unemployment is a situation where people are ready and capable of working are unable to get job. It include in one of the macro economic problems for every government and government is expected to monitor and regulate. (P.S.O. Uddin 2013).

Types of unemployment.

The purpose of this part is deals with the various types of unemployment which is used by different researcher and scholars.

Frictional Unemployment

It is the changes in the individual market in the cost of frictional or temporary unemployment, frictional unemployment arise when a person is in between job.it will take more time when it left and find another job. Friction unemployment is happened due to the mismatch of youth skills, education, and experiences with the demands of company’s requirements.(Aleandri 2013)

Structural Unemployment

When there is job opportunity but individual have not their require skill and education, the pattern of the job is different from the individual workers skills.

Cyclical unemployment

It is occur due to the business cycle itself. It is increase during the recessionary periods and, decrees during the period of economic growth.

Causes of youth unemployment in Pakistan

In the study of the youth unemployment in Pakistan, (Sumera Akram 2012), (khaleek 2013), (Khan 2016) have identified the main causes of youth unemployment in Pakistan.

Rapid population growth: according to the united Nation estimates on 26 December 2018, the current population of Pakistan is 202,612,306. Pakistan rank on 6^th in the world on the basis of population, the population growth rate of Pakistan is 2.10 which is one of the highest rate in the world.(worldometer 2018). So it is argued that the increases population growth rate has resulted in the rapid growth of the labour force which is far outstripping the supply of job. The increases growth of population on Pakistan’s unemployment problem is complicated.

Rural Urban Migration: it is big problem in Pakistan, the trend of rural urban migration is increasing in Pakistan, due to the lack of facilities peoples moves towards urban, so the population of urban is much bigger and its pull towards urban life unattractive. The rural areas are neglected in the allocation of social and economic opportunities that is why they movers towards urban.

One of the major cause of unemployment in Pakistan is the economic depression ,due to the combined with the terror of America, the industrial activity in Pakistan is reduced, it has defaced Pakistan’s image in the international arena .so now others countries are not ready to investment in Pakistan.(Akram 2012).

Pakistan is a-agriculture country, agriculture sector is the 2^nd major sector for the job provision inPakistan, but due to the shortage of water, climate changes and old technologies agriculture is decline to provide job.it is already facing several problems and challenges. There are more than 62% has directly or indirectly relation with agriculture sector.in 2009-10 the production growth rate of agriculture was 3.8% but only success to get 2%. Industry is the largest and biggest sector economy inPakistan, the industrial sector provide 18.5% gross domestic product and 13% total employment depends on industrial sector. Education is the real weapon to develop any country, in Pakistan only 2% GDP spent on education which is very small amount. Due to low budget the education system in Pakistan is not good, there is a big gap between educated people skill and industry requirement skills.(Akram 2012)

Pakistan’s Status of Unemployment

The economy, of Pakistan has created much benefits from the foreign exparaatriates specifically the gulf countries. Now, there are some economic changes occurred in the Arab countries due to this the economy does not allow to employment opportunities the opportunities of unskilled labour has been declined because of decrease in jobs abroad ,the population rate of Pakistan is very high and opportunities are going to decreases.

The literacy rate of Pakistan is one of the lowest in the world, expenditure on education is very low only 2% GDP , education system is not producing industry require product.in Pakistan industry demand for skills does not match the supply for skills that is why youth unemployment is increasing day by day in Pakistan.(Akram 2012).

Youth unemployment in Pakistan

The problem of unemployment exist all along the world, Pakistan is one of the country who is suffering since its inception, so it kept an crucial problem in the country, therefore Pakistan’s youth is much suffering from this problem. There are many causes behind the youth unemployment in Pakistan. Following are the main causes of youth unemployment in Pakistan.

The education system is not good which are not prepare the youth to meet the market demand.

There is not opportunity for youth in market.

There are favouritism in politics.

Less industrialization.

There is no budget for youth development programme.

Due to population explosion, there is youth unemployment in Pakistan.

Political interferer in education institutions is also one main cause of youth unemployment in Pakistan.

Weak public policy means mismanagement or insufficient economic plan is also one of the main reason for youth unemployment in Pakistan.

Effect of unemployment on youth in Pakistan.

The youth are suffering to various social evils, diseases and commit suicide. The ratio of youth crime is increases. Street killing, kidnapping, child rape, robbing are increasing in the community. For temporary satisfaction youth doing undesirable activities like smuggling, sale of heroin, drinking wine etc. Youth talent is going to spoil due to the effects on unemployment in Pakistan. Which is the hope of family and future of Pakistan.

Solutions to youth unemployment in Pakistan

First the government of Pakistan must play its constitutional role by creating enabling political environmental, socio-economic which includes the provision of infrastructure to make industrial climate investment friendly. This will increase the investor to invest and by creating the more job opportunity for unemployment youth in Pakistan. Recently the Prime Minister Imran khan has visited in china and offered to bilateral trade it’s a good step.

Conclusion

The purpose of this paper is to finding the causes of youth’s unemployment in Pakistan. The present scenario of youth unemployment in Pakistan shows a gloomy picture of the future. In Pakistan the educated youth are facing so many problem to finding jobs. The result of the study show that the most important reasons of youth unemployment in Pakistan are high population rate, favouritism in politics, poverty , lack of skills, corruption ,low level education, and no proper policy for the development of youth. Due to the lack of opportunity in Pakistan the educated youth are trying to go foreign countries.

Recommendations:

Anti-corruption should find the causes of corruption and should give high punishment for corrupt people.

Government should launch youth development programme.

Government should invest heavily on education in Pakistan.

Try to create labour market it’s better to work for youth.

Make good environment for investment.

References

Akram, Sumera. 2012. "Unemployment Reasons and Its Impact on Pakistan Economy." City University Research Journal 3.

Blaug. 1970. "eduction and the employment problem in developin countries." ILO Geneva.

Blessio, Bhebhe Thomas.Bhebhe Ruth and Bhebhe. 2016. "AN INVESTIGATION INTO THE CAUSES OF UNEMPLOYMENT AMONG." Global Journal of Arts, Humanities and Social Sciences ,Vol.4, No.2, pp.90-102. 13.

khaleek, Mian Muhammad Ahmed Iqbal and Shahid quyyam. 2013. "CAUSES OF UNEMPLOYMENT AMONG THE EDUCATED YOUTH IN PAKISTAN." The international journal of social sciences,Voll.11 No.1 7.

Khan, Zaheer Ahmad Ahmad and Jangraiz. 2016. "An Analysis of the Causes and consequences of unemployemnt in district peshawar." Munich Personal RePEc Archive 15.

P.S.O. Uddin. 2013. "Causes, Effects and Solutions to Youth Unemployment problems in Nigeria ." Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 4(4):397-402 6.

Sumera Akram, Shahzad Khan, Muhammad Nawab Khan & Muhammad Tufail. 2012. "Unemployment Reasons and Its Impact on Pakistan Economy." City University Research Journal 3.

2018. worldometer. december wednesday. http://www.worldometers.info/world-population/pakistan-population/.