Unprecedented employment crisis and brain drain

The persistent brain drain and its impact on Pakistan’s social fabric have been a recurring topic in this space.

While seeking a better future abroad is not inherently wrong, the current situation where the most educated and skilled individuals are struggling to make ends meet and losing hope of finding decent employment is unprecedented.

In 2023 alone, the deteriorating economic conditions and high unemployment rates have driven 860,000 highly skilled Pakistanis to seek better prospects abroad. This alarming scale of migration, coupled with stagnant growth prospects, suggests that the situation will only worsen in the coming years.

The frustration among the youth is palpable. The unemployment rate for those aged 20-24 years has surged, leaving fresh graduates in a precarious position as they struggle to secure their first jobs.

The job market is not just saturated; it is fiercely competitive, creating a grim “employer market” where job-seekers have little to no leverage.

Despite holding qualifications and degrees, many young people find themselves either without work or trapped in positions that fail to match their skills and aspirations. This stark disconnect between education and employment opportunities is a powerful force driving the youth to seek opportunities abroad, further exacerbating the brain drain and painting a bleak picture of the future.

Even for those privileged enough to secure employment in Pakistan, the financial rewards are demoralisingly low. The Numbeo.com database reveals that the average monthly salary is approximately $184.90, placing Pakistan just above Egypt and Cuba in the global wage hierarchy.

In stark contrast, even neighbouring countries like Sri Lanka, Nepal, and Bangladesh exceed the $200 mark. These meagre salary levels not only diminish the living standards of individuals but also have far-reaching socio-economic implications.

Financial dissatisfaction leads to decreased productivity and engagement, as employees struggle to stay motivated in roles that fail to provide even a basic standard of living. This pervasive economic hardship underscores a grim reality for the country’s workforce, perpetuating a cycle of low morale and stagnation.

Low wages mean that many families struggle to meet basic needs such as food, healthcare and education. This situation perpetuates a cycle of poverty, where children from low-income families have limited access to quality education and healthcare, thereby reducing their future employment prospects and potential earnings.

The high cost of living, especially in urban areas, exacerbates these challenges. For many, the struggle to earn a livelihood is a daily battle, with little hope for substantial improvement in their financial situation.

The impact of low salaries extends beyond individual hardship. It affects the overall economic development of the country. When people have limited disposable income, they spend less on goods and services, which in turn hampers business growth and economic expansion.

Furthermore, low wages can lead to increased social unrest and crime rates, as people become desperate to make ends meet.

To address these pressing issues, both businesses and the government must take proactive measures. On the business front, companies need to invest in their workforce. This involves offering competitive salaries, benefits and opportunities for career advancement.

Businesses should focus on employee retention by creating a supportive and inclusive work environment. This not only enhances productivity but also reduces the brain drain as skilled workers find reasons to stay and grow within their own country.

Moreover, businesses can play a crucial role in bridging the gap between education and employment. By collaborating with educational institutions, companies can ensure that the curriculum is aligned with market needs.

Internship programmes, apprenticeships and on-the-job training can equip young people with the practical skills that enhance their employability.

Encouraging entrepreneurship is another vital strategy. By providing mentorship, funding and resources, businesses can help young entrepreneurs establish their ventures, thereby creating new job opportunities.

On the governmental front, policy reforms are essential to create a conducive environment for job creation and economic growth. The government must invest in education and vocational training to ensure that the workforce is equipped with the necessary skills for the job market.

Despite the tough financial situation, the government has to put in place some sort of social safety net for those struggling to find work or living on low wages. These measures can alleviate some of the immediate pressures on individuals and families, allowing them to focus on improving their skills and finding better job opportunities.

In conclusion, the struggle to earn a livelihood in Pakistan is a multifaceted issue influenced by high unemployment rates, low wages and the resulting brain drain. Addressing these challenges requires a concerted effort from both businesses and the government.

Collectively, we have to create a more prosperous and financially rewarding future for the youth, reducing the brain drain, improving the overall economic health of the nation and ensuring sustainable development.

The writer is a financial market enthusiast and is attached to Pakistan’s stocks, commodities and emerging technology