Unemployment in Pakistan – Causes, Impact & Real Solutions


Pakistan is a young country. Nearly 65% of the population is under the age of 30 — which should be a massive economic advantage.
But instead, unemployment continues to grow, especially among educated youth.

Every year thousands of graduates leave universities with degrees, hopes, and expectations — yet many spend months or even years searching for a stable job.

This is not only an economic issue.
It is a social, psychological, and national development challenge.

In this guide, we will understand:

  • Why unemployment is increasing in Pakistan

  • Which sectors have the most job shortage

  • Real effects on youth and society

  • Practical solutions for job seekers

  • The future of employment in Pakistan

Unemployment in Pakistan

Current Situation of Unemployment in Pakistan

Pakistan produces more than 1 million graduates every year, but the economy cannot absorb them.

There are three major patterns visible:

1. Educated Unemployment

People with degrees cannot find jobs related to their field.

Examples:

  • MBA holders working in sales on commission

  • Engineers preparing for government exams for years

  • Graduates doing internships without salary

2. Underemployment

People have jobs but income is not enough to survive inflation.

For example:
A person earning Rs. 25,000–35,000 in a big city cannot manage rent, transport, and food.

3. Hidden Unemployment

Many people work in family businesses or shops but their work does not actually increase productivity. Economically they are considered unemployed.


Major Causes of Unemployment in Pakistan

1. Education System Not Matching Market Needs

Our universities focus on theory instead of skills.

Students graduate with:

  • No communication skills

  • No practical experience

  • No digital knowledge

But employers want productivity from day one.

Result → Employers don’t hire fresh graduates.


2. Overdependence on Government Jobs

Most students prepare only for:

  • FPSC

  • PPSC

  • NTS

  • Government departments

Thousands compete for a few seats.

A single job post sometimes receives 50,000+ applications.


3. Slow Industrial Growth

Factories are closing or not expanding due to:

  • High electricity prices

  • Import restrictions

  • Economic instability

When industries don’t grow → jobs don’t grow.


4. Population Growth

Every year the workforce increases rapidly, but job creation is slow.

More workers + fewer jobs = unemployment pressure


5. Lack of Skill-Based Culture

In Pakistan, many people only respect office jobs.

But countries grow through skilled workers:

  • Electricians

  • Technicians

  • Plumbers

  • Mechanics

  • Care workers

These jobs exist but people hesitate to adopt them.


Effects of Unemployment on Society

Unemployment is not just about money. It affects mental health and social stability.

Psychological Impact

  • Depression

  • Loss of confidence

  • Anxiety

  • Social isolation

Social Impact

  • Delayed marriages

  • Family conflicts

  • Crime increase

  • Brain drain (people leaving country)

Economic Impact

  • Lower tax collection

  • Lower purchasing power

  • Business slowdown


Which Sectors Still Have Job Opportunities?

Even in unemployment crisis, some sectors are growing.

Growing Fields in Pakistan

  • E-commerce

  • Delivery & logistics

  • Digital marketing

  • Customer support / call centers

  • Domestic services

  • Technical trades

  • Freelancing

Pakistan’s job market is shifting from degree-based employment to skill-based employment.


Practical Solutions for Job Seekers

Instead of waiting for one perfect job, modern workers build income sources.

1. Learn a Practical Skill (30–60 Days)

Examples:

  • Graphic design

  • Video editing

  • Social media management

  • Electric work

  • Cooking / baking

  • Driving

Skills pay faster than degrees.


2. Start Small Work Instead of Waiting

Many successful careers begin with small jobs.

Work builds:

  • Confidence

  • Network

  • Experience

Experience later converts into better opportunities.


3. Use Online Platforms

Today jobs are moving online and local hiring platforms are becoming common.

Instead of asking relatives for reference, people now create profiles and connect directly with employers.


4. Freelancing is a Long Term Solution

Pakistan is already among the top freelancing countries.

But freelancing requires patience:

  • 2–3 months learning

  • 2–4 months client building

After consistency, it becomes stable income.


What Government and Society Must Do

Real unemployment reduction requires structural change.

Education Reform

Universities must include:

  • Internships

  • Skill courses

  • Communication training

Promote Skilled Work

Respect technical professions like developed countries do.

Encourage Small Businesses

Micro businesses create the most employment.

Digital Employment Platforms

Connecting employers directly with workers reduces job search time.


The Future of Jobs in Pakistan

The future will not belong only to degree holders.

It will belong to:

  • Skilled workers

  • Multi-income earners

  • Digital workers

  • Service providers

Those who adapt will grow.
Those who wait will struggle.

Employment is shifting from “Find a job” → “Create value”


Final Thoughts

Unemployment in Pakistan is serious — but not hopeless.

Opportunities still exist, but they have changed form.

The new rule is simple:

Skills + Adaptability + Consistency = Employment

Young people who learn practical skills and stay flexible will survive and succeed in the modern economy.

Unemployment in Pakistan – Causes, Impact & Real Solutions

Pakistan is a young country. Nearly 65% of the population is under the age of 30 — which should be a massive economic advantage. But inste...