Pakistan’s unemployment rate has climbed to 7.1 percent, leaving nearly 6 million people without jobs despite an increase in overall employment, highlighting a growing mismatch between workforce expansion and job creation.
The latest Economic Survey shows that while employment rose to 77.2 million, the labor market has struggled to absorb the rapidly growing working-age population. With more than half of Pakistan’s population now falling within the working-age bracket and a large youth population entering the job market every year, pressure on employment opportunities continues to intensify.
Economists warn that Pakistan’s demographic advantage could turn into a challenge if economic growth fails to generate sufficient quality jobs. The findings also raise concerns about the effectiveness of existing employment, skills training, and entrepreneurship programs in addressing labor market needs.
As the government focuses on AI training, digital skills, and youth development initiatives, experts stress that sustainable economic growth and private-sector investment will be critical to reducing unemployment and converting Pakistan’s young population into a productive economic asset.
