Unemployment in Pakistan and the way out of it

The Pakistani rate of unemployment increased by 6.5 percent, and we can say that one out of every 10 persons in the country are experiencing unemployment. The statisticss from the urban areas for the unemployment rate were taken and it increased by 2 percent to 10.1 percent and in rural areas it increased from 4.3 percent to 5 percent. In the year 2020, when the unemployment rate in Pakistan was approximately 4.45 percent, a minor decrease from 4.65 percent the previous year. According to the Trading Economics Global Macro Model and Analysts expectations, the unemployment rate is likely to reach 5.0 percent by the end of 2021. According to official information, the predicted growth of the economy has almost eliminated the informal sector in which three of every four people lost their livelihoods between April and July the previous year. According to a report, “Special Survey for Evaluating Socioeconomic Impact of COVID-19 on Wellbeing of People”, the labour market of Pakistan dropped by 13 percent in the April–June quarter of 2020, leaving 20.7 million people out of work and due to that those workers, who mostly affected by this were the low-skilled young workers.

Such an environment should be created by the government which makes the industrialist set up more and more industries. There are numerous such people of very creative mindset but who are facing high interest rates on personal loans in Pakistan. The government needs to start a scheme to encourage and promote them. The businessmen should be encouraged to start their own business or continue with their family businesses