World Economy

Pakistan Joblessness Rising

Pakistan Joblessness RisingPakistan Joblessness Rising

Economic growth is gradually picking up in Pakistan to respectable levels but is still unable to absorb the surging number of job-seekers entering the labor market, APP reported. The unemployment rate is on the rise, depriving a sizable segment of the population of its livelihood and preventing the harnessing of the real potential of both manpower and natural resources for development. According to the latest short-term IMF forecast, Pakistan’s economy will grow at 5% in FY2017 and 5.2% FY2018. The fund also projects a slight increase in unemployment ratio from the current 6% to 6.1% in the next fiscal year. This ratio was 5.9% in FY2015, much higher than the 5% considered by economists as ‘full employment’. This is growth without development. Foreign economists say that Pakistan needs a growth rate of 7-8% on a sustained basis to absorb the increasing number of jobless and clear the backlog. That target is not within easy reach. Much depends on the quality of growth that may or may not produce enough jobs, especially when growth comes from better capacity utilization rather than capacity expansion or greenfield projects.


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