Unemployment Surge Prompts Call for Industrial Revival

Karachi: The latest findings from the Pakistan Bureau of Statistics reveal a significant rise in unemployment, prompting calls for immediate industrialization to address the job deficit. The Labour Force Survey 2024-25 reports an increase in unemployment from 6.3% in 2020-21 to 7.1%, despite the creation of 10 million jobs over four years.

Mian Zahid Hussain, a prominent business leader, emphasized the urgent need for revitalizing the industrial sector to absorb the growing workforce. He noted a shift in labor from agriculture, with its employment share declining, while the services sector has expanded but often into low-productivity roles.

Hussain highlighted a rise in average monthly wages, from Rs 24,000 to Rs 39,000, driven more by inflation than productivity improvements. He expressed concern over the lack of industrial expansion, noting the workforce’s migration into the services sector.

Welcoming the growth in female entrepreneurship from 19% to 25.2%, Hussain identified this as a positive development. However, he pointed out that 76% of women remain in unpaid domestic roles, a significant loss to potential economic output.

The report also notes that 10.6% of secondary jobs are in the gig economy. Hussain urged government support for freelancers and IT exports to boost youth employment.

Hussain called for urgent measures to expand the manufacturing sector, citing high electricity and gas tariffs as barriers. He urged the government to lower business costs and trigger an industrial revolution to reduce the unemployment rate.