Unemployment in Pakistan set to increase in 2014: ILO report

Published: January 22, 2014

As of 2013, Pakistan had an unemployment rate of 5.17%. PHOTO: ILO.ORG

The Global Employment Trends report issued by the International Labour Organisation (ILO) projected that Pakistan’s unemployment rate — 5.17% in 2013 — is set to rise slightly increase and then remain more or less the same for five more years due to the kind of political unrest plaguing the country.

For 2014, ILO claimed unemployment rate will likely rise to 5.29%.

The report stated that in the fifth year of the global recession, growth across the world decelerated and unemployment started to increase again, leaving an accumulated total of some 197 million people without a job in 2012.

ILO predicts only a slight increase in the unemployment rates of Pakistan. P = projected rates. PHOTO: ILO.ORG

Generally in South Asia, labour markets continued to suffer from high rates of informal, agricultural employment where jobs are poorly paid and unprotected. Domestic problems and political unrest in Pakistan dampened growth, whereas GDP grew in India, Sri Lanka and Bangladesh.

India’s unemployment report has also been predicted to stay constant at 3.8%. Compared to 2012′s numbers (5.04% for Pakistan and 3.58% for India), unemployment has increased in both countries.

In South-East Asia and the Pacific, employment expanded by 1.6% in 2013 and is projected to outpace growth in the working age population in the coming years.

Productivity

A separate World of Work report by the ILO stated that Pakistan was one of the countries in which the market situation and labour quality actually improved as compared to countries like India and Mexico.

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Pakistan’s labour productivity grew by 0.94% in 2013. PHOTO: ILO.ORG

Pakistan made it to the lower-middle-economies list, with about 55% of its population earning below $2, 43% earning between $2 and $6 and the remaining earning between $6 and $20 per day.

 

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PHOTO: ILO.ORG

Pakistan’s uncertain future

Pakistan’s future also relies partly on the overall scenario in the rest of South Asia where, because of the global slowdown, creating jobs should be difficult in 2014. The persistent uncertainty and political unrest implies that Pakistan’s economy may lag behind the progress-oriented countries in South Asia.

India is in the midst of tackling political hurdles and wavering investor sentiment in light of a high current and fiscal deficit. Bangladesh, on the other hand, has been relatively successful in creating jobs, particularly in the garments sector, which helped a large number of females secure jobs.

Reader Comments (16)

  • Ch. Allah Daad
    Jan 22, 2014 - 11:49PM

    5.17 % unemployment rate is wrong. In my opinion it’s more than 20%. Recommend

  • Ali Zaidi
    Jan 23, 2014 - 2:08AM

    @Ch. Allah Daad: 90% of the [more than 20%] are well employed with extortion, bhatta, mafia, kidnapping. So the 5% seems realistic.

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  • Assad
    Jan 23, 2014 - 2:18AM

    This is another area where musharraf government’s performance was way better than these useless leaders.

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  • Sodomite
    Jan 23, 2014 - 2:35AM

    This talented PMLN Govt will have unemployment of 0.1% when they are kicked out of office. The 0.1% will be themRecommend

  • Dhaka
    Jan 23, 2014 - 2:48AM

    Still again prove that bangladesh is much ahead than pakistan.Second super power in south asia.

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  • clarification
    Jan 23, 2014 - 4:00AM

    @Ch. Allah Daad:
    No, the 9 men puffing hookah in Interior Sindh on a “char-pai” while 2 women work on the fields are also considered “employed” in official statistics by Govt of Pakistan.

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  • Indian
    Jan 23, 2014 - 4:54AM

    We should stop considering what these american idiots think.Recommend

  • unbelievable
    Jan 23, 2014 - 6:42AM

    Ignores any impact of American pull out of Afghanistan and potential impact on relations with Pakistan – namely if the American’s are truly upset they may switch their textile orders over to India, Bangladesh and China who would be happy to have the business. The loss of your largest and highest margin customer would surely have an adverse impact on employment.

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  • Waqar Aziz
    Jan 23, 2014 - 6:59AM

    As usual ET take pleasure in putting bad news on the first page.

    Recommend

  • Nikki
    Jan 23, 2014 - 7:51AM

    @Indian:
    The reality must be accepted no matter where it comes.

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  • Jan 23, 2014 - 9:56AM

    @Ali Zaidi: Add to it corruption, which includes tax evasion, loan defaulting, squirrelling of development and aid funds, forgery, fraud, and whatever else there is that is considered illegal. Salams

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  • Jan 23, 2014 - 11:43AM

    Bravo. As the population grows and people still care nothing for birth control……..

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  • Iram
    Jan 23, 2014 - 2:04PM

    Qingqi rickshaw will be banned in great Punajb so unemployment rate will increase.

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  • Hasan
    Jan 26, 2014 - 6:35PM

    Believe me guys,,,having researched it by an international organisation doesn’t means they are right , believe me things will get better in 2014 & on-wards Insh Allah .the article is more related to labor class ,.(not a PMLN supporter)

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  • Marx
    Mar 18, 2014 - 4:51AM

    Its all the crisis of capitalism.

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  • May 14, 2014 - 8:58PM

    Actually our government is not use all the the sources available in Pakistan, due to this unemployment rate is going to increase.

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