Pakistan’s unemployment rate is expected to rise to nearly 7% in 2024–25, according to preliminary findings of the latest Labour Force Survey, marking a significant shift from the previously recorded 6.3%. The increase comes after Pakistan adopted a new international labour measurement system that changes how employment is defined across the country.
The earlier survey from 2020–21 had placed the labour force at 71.76 million, with 42.1% of the population employed and a sharp gender divide in participation. Youth joblessness was the highest at 11.1%, especially among young women. But the newly updated survey uses modern ILO standards that exclude non-income activities such as unpaid family work, subsistence farming, and small-scale household production previously counted as employment.
Officials say this change is the biggest methodological update in decades, designed to better reflect “real” economic participation. However, experts have raised concerns about discrepancies particularly in Islamabad Capital Territory’s employment numbers though PBS has not responded to queries yet. The official report is expected next week.
With these new definitions, many rural women, unpaid helpers, and household producers may no longer qualify as employed, pushing the unemployment rate higher and reducing Pakistan’s overall labour force participation.
“The shift will reshape how we understand Pakistan’s labour market going forward,” an official familiar with the process said, adding that the updated data will offer a clearer picture of who is genuinely earning an income.