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Unemployment is a major economic issue in Pakistan, with the unemployment rate reaching 15% in 2011. It is caused by factors like a mismatch between the skills of workers and available jobs, as well as structural problems in the labor market. Both short-term frictional unemployment and long-term chronic unemployment exist in Pakistan. The government needs to stimulate economic growth and exports to generate more jobs as well as improve vocational training programs to equip workers with skills demanded by employers.

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Mübashir Khan
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45 views

Roll No:42

Unemployment is a major economic issue in Pakistan, with the unemployment rate reaching 15% in 2011. It is caused by factors like a mismatch between the skills of workers and available jobs, as well as structural problems in the labor market. Both short-term frictional unemployment and long-term chronic unemployment exist in Pakistan. The government needs to stimulate economic growth and exports to generate more jobs as well as improve vocational training programs to equip workers with skills demanded by employers.

Uploaded by

Mübashir Khan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Roll no :42

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Unemployment is an economic term. It means the percentage of labor force without job. It is a global problem. Unemployment is on its peak in Pakistan. According to the recent statistics, approximately 5.95 percent of labor force is unemployed in Pakistan. It is increasing day by day.

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Unemployment occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy. The most frequently cited measure of unemployment is the unemployment rate. This is the number of unemployed persons divided by the number of people in the labor force. Unemployment rate: Unemployment rate is percentage of labor force that is out of job .

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2012 YEARS 1998 1999 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011 6.5

RATE

6.3

7.8

7.7

8.3

6.6

6.5

7.4

14

15

5.6

Source: CIA World Fact book -

Chart Title
16 14 12 10 8 6 1998 1999 2001 2003 2004 2005 2006 2007 2008 2009 2010 2011

5.6
4 2 0 Pakistan

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It is short run unemployment ,which is associated with the process of matching workers with jobs. Cost of frictional unemployment are very low and may even the beneficial for the economy. Certain amount of frictional unemployment is essential to smooth functioning of the economy .

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The long term and chronic unemployment that exist even when the economy is producing at the normal rate .

Due to lack of skills language barriers or discrimination some workers may not find a stable long term job.
2ndly economic changes some time create a long term miss match , which means the skills of some workers does not match with available jobs .finally the structural features of labour market may act as barriers to get the job .

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It occur during period of recession .increase in cyclical unemployment are recently short lived but they result in significant decline in the real GDP or economically quite costly .

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It occur when an occupation is not in demand in certain season . Seasonal unemployment is a form of structural unemployment, as the structure of the economy changes from month to month.

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This law states that each extra % point of cyclical unemployment is associated with about 2 % point increase in the output gap measured in relation to potential output.

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There are numerous causes of unemployment in Pakistan.
Our education system is not according to the needs of our country. All the attention is paid to theoretical education and practical is ignored, thats why there is shortage of skilled hands in Pakistan.

Pakistan is a developing country, and needs skilled people for progress. We are not advance in industry, we cant absorb all the youth in factories.

Energy Crisis is one of the major problem of unemployment. Due to energy crisis business activities are very low, So unemployment occurs.

Our birth rate is very high. The resources of the country are not enough to maintain such a large and growing population. Jobs are less than the need of the people.

One important cause of unemployment is the behavior of our young people. They dont like manual work, they are dreaming of a good office job and a high social status. Negligence of our government is one of the major causes of unemployment in Pakistan. Its current polices and efforts are not enough to decrease and eliminate unemployment form Pakistan.

* I would like to suggest that with proper

economic planning, consistent policies of government, better law and order situation, abolishing energy crisis, sincerity with Pakistan and by adopting the Islamic economic system we can not only tackle the issue of unemployment but every economic problem of our country as well.

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1) Govt. should make efforts to push economic growth process. For this purpose Economic Revival Package should announce for the revival of industries sector, to stimulate production and investment. 2) Govt. should seriously try to boost exports through broadening the tax base and lowering tariffs. 3) Govt. should announce a package for the development of agriculture sector . 4) Beside this a number of fiscal and monetary measures should take to attract industrialists and particularly foreign investment. 5) More Technical and Vocational training facilities should be provided. In this way unemployed people will get the chance to enhance their skills and become able to earn reasonable income. 6) With a view to reduce educate unemployment, self-employment scheme should be encouraged in true manners.

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