Population of Pakistan is about 154 million whereas the growth rate of population is about 2.6 percent per year. The total labor force is 47.67 million, out of which 44.01 million, is employed and 3.66 million is unemployed. The main cause of unemployment is as under:
1. High Population Growth Rate
Due to rapid increase in population unemployment rate is increasing very fast.
2. Low Rate of Investment
In Pakistan, per capital income is very low, therefore savings are very low, hence investments are less. Due to low investment are employment opportunities are not coming up.
3. Mechanization of Agriculture
Agriculture is under process of mechanization. Machines are replacing labor and creating unemployment. Migration from villages to cities is also a cause of increase in unemployment, as cities have already reached to the saturated level and could not absorb new job seekers.
4. Sick Industries and Privatization
Industries are facing many problems. Many of them are at the verge of collapse due to lack of availability of imported raw material, short of demand in local market, reduction in their exports and competition with foreign imported goods. Number of sick industries is increasing day by day which is causing unemployment in the country. Moreover due to privatization policy of the government, state owned industries are being sold out to private sector, where labor is being reduced thus causing unemployment in the country.
5. Decrease in Foreign Employment Opportunities
Due to war between Iraq and Kuwait, attack on Afghanistan and Iraq economic crises in Middle East and in other European countries, Pakistani workers have been removed from their jobs thus creating unemployment situation in the country.
Read more: Resources of Pakistan http://www.friendsmania.net/forum/b-com-part-2-ii-economics-pakistan-notes/28441.htm#ixzz2dnfrDE5m
1. High Population Growth Rate
Due to rapid increase in population unemployment rate is increasing very fast.
2. Low Rate of Investment
In Pakistan, per capital income is very low, therefore savings are very low, hence investments are less. Due to low investment are employment opportunities are not coming up.
3. Mechanization of Agriculture
Agriculture is under process of mechanization. Machines are replacing labor and creating unemployment. Migration from villages to cities is also a cause of increase in unemployment, as cities have already reached to the saturated level and could not absorb new job seekers.
4. Sick Industries and Privatization
Industries are facing many problems. Many of them are at the verge of collapse due to lack of availability of imported raw material, short of demand in local market, reduction in their exports and competition with foreign imported goods. Number of sick industries is increasing day by day which is causing unemployment in the country. Moreover due to privatization policy of the government, state owned industries are being sold out to private sector, where labor is being reduced thus causing unemployment in the country.
5. Decrease in Foreign Employment Opportunities
Due to war between Iraq and Kuwait, attack on Afghanistan and Iraq economic crises in Middle East and in other European countries, Pakistani workers have been removed from their jobs thus creating unemployment situation in the country.
Read more: Resources of Pakistan http://www.friendsmania.net/forum/b-com-part-2-ii-economics-pakistan-notes/28441.htm#ixzz2dnfrDE5m
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