Unemployment:: Major Causes of Unemployment in Pakistan
Unemployment:: Major Causes of Unemployment in Pakistan
Unemployment:: Major Causes of Unemployment in Pakistan
As defined by the International Labour Organization, occurs when people are without jobs and they have actively looked for work within the past four weeks.The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labour force.These theories argue against interventions imposed on the labour market from the outside, such as unionization, minimum wage laws, taxes, and other regulations that they claim discourage the hiring of workers. Keynesian economics emphasizes the cyclical nature of unemployment and potential interventions to reduce unemployment during recessions. These arguments focus on recurrent supply shocks that suddenly reduce aggregate demand for goods and services and thus reduce demand for workers. Keynesian models recommend government interventions designed to increase demand for workers; these can include financial stimuli, job creation, and expansionist monetary policies. Marxism focuses on the relations between the controlling owners and the subordinated proletariat whom the owners pit against one another in a constant struggle for jobs and higher wages. This struggle and the unemployment it produces benefit the system by reducing wage costs for the owners. For Marxists the causes of and solutions to unemployment require abolishing capitalism and shifting to socialism or communism. main types of unemployment include structural unemployment which focuses on structural problems in the economy and inefficiencies inherent in labour markets including a mismatch between the supply and demand of laborers with necessary skill sets. Structural arguments emphasize causes and solutions related to disruptive technologies and globalization Currently, unemployment is one of the major problems of Pakistan because when unemployment is high, resources are shattered and incomes of people are depressed. To create jobs in Pakistan for the increasing labor force, the socio economics system of Pakistan and institutions have failed. It is just because of lack of proper planning. Where unemployment is creating lots of problems it is also promoting extremism and terrorism in the society.
Major Causes of Unemployment in Pakistan:1. The basic cause of unemployment in Pakistan is its higher growth rate of population. Because of this reason government and other institutions are failing to create sufficient job opportunities in Pakistan. 2. Law and order situation in the country is also a big issue. Karachi is the business hub and the biggest city of Pakistan. However, due to uncertainty and violence in the city investors are reluctant to invest. 3. Political instability is another major reason for low or lack of jobs in Pakistan.
4. Our educational system is also guilty for mounting unemployment rate among the educated youth because the approach of our youth towards career choice is unrealistic and unproductive. 5. Lack of facilities and infrastructure in the energy sector also prevents the industrialists from setting up new industries in the country. 6. Policy makers have not handled things in appropriate manners, as a result jobs in Pakistan are less but job seekers are more than that.
How situation can be improved:1. In order to attract the foreign investment, government should take some revolutionary steps on the law and order situation of the country. 2. Government of Pakistan should announce the economic revival package for the stimulation of the industry sector, to stimulate production and investment. 3. Government should try to enhance exports through lowering the tax base and tariffs. 4. As Pakistans economy is agro based so the government should take revolutionary steps for the development of the agriculture sector. By doing this lots of jobs in Pakistan can be created. 5. A number of monetary measures should be taken to attract industrialists and particularly foreign investment. In this regard, our embassies can play a vital role as they can do road shows for promotional campaign to attract investment and to enhance exports. 6. Technical training programs should be started in the country. In this way unemployed people will get a chance to build or enhance their skills, which will help them to earn more reasonable income. Along with this government should provide loans on low interests to the unemployed people so that they can start their business. By working on these things, government can create lots of job opportunities in Pakistan. But for this continuation in the policies and political stability both are of utmost importance
Under employment
A situation in which a worker is employed, but not in the desired capacity, whether in terms of compensation, hours, or level of skill and experience. While not technically unemployed, the underemployed are often competing for available jobs. Underemployment can refer to:
1. "Over qualification" or "over education", or the employment of workers with high education, skill levels, and/or experience in jobs that do not require such abilities. For example, a trained medical doctor who works as a taxi driver would experience this type of underemployment. 2. "Involuntary part-time" work, where workers who could (and would like to) be working for a full work-week can only find part-time work. By extension, the term is also used in regional planning to describe regions where economic activity rates are unusually low, due to a lack of job opportunities, training opportunities, or due to a lack of services such as childcare and public transportation. 3. "Overstaffing" or "hidden unemployment" (also called "labor hoarding", the practice in which businesses or entire economies employ workers who are not fully occupied---for example, workers currently not being used to produce goods or services due to legal or social restrictions or because the work is highly seasonal.
Underemployment in Pakistan
In Pakistan, a large proportion of the employed labor force works less than 35 hours (see Figure S1) and may, therefore, be considered as being underemployed; without knowing how many were doing it voluntarily or involuntarily basis. This distinction is essential to compute the exact level of underemployment in the country. As defined in the Pakistan Labor Force Survey (LFS), employed persons working less than 35 hours are considered to be underemployed, but only if they are willing and available for additional work (for details see Box S1). However, data constraint in the LFS does not allow a clear computation of the underemployment rates directly, but some supporting LFS data does provide some insights. Based on available information, it appears that the underemployment has increased from 13.4 percent to 14.0 percent during FY02-04.
Thus, the underemployment in the male group was either at 7.3 percent or below during FY04. Looking at the economic status-wise data, the proportions of the employed
working less than the normal work hours were at the highest in unpaid family helpers and at the lowest in employers. Considering the region-wise data, both indicators, i.e. employed working less than 35 hours a week and those available for additional work, suggest that the underemployment is more prevalent in the rural sector
Fifthly, United States of America spent 368 billion in 2007 on research and development whereas Pakistans attention towards this sector is the least. By spending on education and research, we can create more specialized fields thus generating more jobs. In the 2010 budget, Pakistan has earmarked only 2% of its GDP on education which is the lowest in whole of the region. Sixthly, Population increase is also a cause of under employment in Pakistan. Till 2010, Pakistans population is 173.54 million whereas most of the population is unable to survive in the financial race because of illiteracy.