Crumbling labour market
The recent revelation by the International Labour Organisation regarding Pakistan’s labour market is nothing short of alarming. It paints a grim picture of a nation grappling with the far-reaching repercussions of the Covid-19 pandemic and the prevailing economic crisis, signaling a pressing need for immediate action and collaborative efforts to steer the country through these tumultuous times.
One of the most disheartening aspects of the report is the sheer scale of projected unemployment. With an estimated 5.6 million individuals expected to be unemployed in 2023 — a surge of 1.5 million since 2021 — Pakistan is facing a crisis of significant proportions. This situation has been exacerbated by the IMF’s projection of an 8.5% unemployment rate in 2023, up from 6.2% in 2021. These numbers are more than just statistics and represent real people, families and livelihoods at risk. Equally concerning is the gender gap in unemployment as Pakistan has struggled with a persistent disparity in unemployment rates between men and women. These labour market challenges do not emerge in isolation. They are the result of a series of economic shocks and crises that have rocked the nation. From the initial shockwaves of the pandemic to the devastating floods of 2022 and recent macroeconomic turmoil, Pakistan’s economy has been subjected to a relentless battering that have resisted industries from organically growing, in turn stagnating job opportunities.
We are now standing at the crossroads, and the decisions we make today will have immediate real-time repercussions. It is imperative for all stakeholders, from the government to civil society, to come together and devise comprehensive strategies to promote job creation, address gender disparities and restore economic stability. Apart from this, strong emphasis should be made on social dialogue and recovery strategies, particularly for the most vulnerable segments of our population.
Published in The Express Tribune, September 18th, 2023.
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