Unemployment In Pakistan Essay Pdf


Keynesian unemployment

Cyclical or Keynesian unemployment, also known as demanddeficient unemployment, occurs when there is not enoughaggregate demand for the labor. This is caused by a business cyclerecession and wages not falling to meet the equilibrium rate.



refers to people who are working less than full-time hours but wouldlike to work longer


Long-term unemployed

are people who have been unemployed for longer than 12 months.


Hard core unemployment

are people who are unemployed due to their personal, mental orphysical characteristics.

Relation to the goods market

According to economist Edmond Malinvaud, the type of unemployment that occurs depends on the situation at the goodsmarket, rather than that they belong to opposing economictheories. If the market for goods is a buyers' market, i.e. sales arerestricted by demand, Keynesian unemployment may ensue, while alimiting production capacity is more consistent with classicalunemployment.

Unemployment in Pakistan:

Now we see that in Pakistan what is the situation of unemploymentand what are its economic and social impacts.In Pakistan labor force include all persons who are of ten years andabove, and during the period are without work, currently availablefor work and seeking for work.In Pakistan unemployment is of structural and cyclical nature.According to Labor Force Survey 1996-97, the rate of openunemployment was 6.1 percent and 5.4 percent as per Labor ForceSurvey of 1994-95. This indicates that rate of unemployment hasincreased between these two surveys by 0.7 percent officially butunofficially unemployment is much larger than this rate.Unemployment rate in rural areas is greater as compared to urbanareas. Because of industries there are more chances of employmentin urban areas. In Rural areas businessmen are setting up industries


Essay On Unemployment In Pakistan Causes, Solution, The problem of unemployment on a vast scale, is a world phenomenon. It is not confined to Pakistan or developing countries along but certainly it is more serious and pronounced in developing and under developing countries of Asia, Africa and Latin America. Pakistan is the largest country in terms of population and manpower but because of the lack of proper opportunities for employment there is a huge waste of manpower. There are skilled, intelligent and trained hands but there is no suitable job for them. Unemployment causes frustration, indiscipline and crimes among people. Because of increasing unemployment there is appalling poverty, social evils and crimes. In Pakistan, the chronic problem of unemployment is widespread. There are thousands of men and women waiting for employment in cities and villages. There is huge unemployment among educated, trained and skilled people.

The two main and important reasons of this chronic and unmanageable unemployment problem are rapidly ever increasing population and defective education system. With such a huge population, Pakistan finds it difficult to make any significant success in the areas of employment, alleviation of poverty and backwardness. The parents spend huge sum of money on the education and training of their children. The students spare no efforts in successful completion of their courses and trainings and yet the jobs prove elusive because of our defective education system.

This is factual but sad commentary on our present education and training system and institutions. We need urgently a system of vocation education which is both competitive and make friendly. About 80 percent of educational institutions are under the government. Our schools and technical institutes do not equip the students properly to suit the market demands. The circular is outdated and sometimes even irrelevant. In this age of globalization, we need fundamental structural changes in our entire education system for improving the unemployment problem. In the final conclusion, education for its own sake it not desirable. It should be for employment and earning. As such, higher education in many cases is simply a waste valuable resource which a developing country like Pakistan can hardly afford. The indiscriminate expansion of education at college and higher levels should be discouraged. It is important that more attention should be given to elementary and secondary education. In short, we can say that the problem of unemployment in Pakistan can only be reduced if Pakistani government take proper measures.


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