PAKISTAN’S latest employment statistics give pause to our policymakers.
With the jobless rate rising to 7.8 percent, the economy is failing to provide work for a growing and overwhelmingly young population.
In a country where two-thirds of the people are under 30, this is not only a statistic, but a warning as well.
Without meaningful job creation, Pakistan risks squandering its demographic dividend, turning a potential economic advantage into a social and economic disaster.
Underemployment is rampant, with many young graduates unable to find jobs that match their skills, and countless others forced into informal, low-wage work.
The root of the problem lies in economic stagnation.
The economy is still on life support, kept afloat only by the International Monetary Fund (IMF) bailout programme.
Growth is sluggish, foreign investment is weak, and industrial expansion remains stifled by chronic structural inefficiencies and interest rates that are still considered too high.
Tight fiscal policies, while necessary for stabilizing the macro-economy, have squeezed growth to a point where businesses are reluctant to expand and hire.
Pakistan’s youth bulge should be its greatest asset, yet policymakers have failed to leverage it.
A productive young workforce can drive economic growth, but only if given the right opportunities.
Other developing nations have successfully harnessed their demographic dividends by investing in education, technology, and industrial development.
Pakistan, however, lags in all these areas.
The education system is producing graduates in fields that do not match the job market’s demands, and the lack of vocational training leaves many young people ill-prepared for available opportunities.
Moreover, without a strong industrial and manufacturing base, there are simply not enough jobs to absorb new entrants into the workforce.
Pakistan must revive its manufacturing sector, attract investment in value-added industries, and create an environment conducive to entrepreneurship and small business growth.
The country also faces an alarming brain drain.
Frustrated by the lack of opportunities at home, skilled professionals are leaving in droves, seeking better prospects abroad.
This exodus further weakens an already fragile economy, depriving it of the human capital needed for long-term growth.
Pakistan’s economic managers must recognise that addressing unemployment is not just about providing jobs; it is about ensuring social stability.
If young people feel shut out of the economy, the consequences could be dire, ranging from increased crime to social unrest.
The solution requires a shift in economic priorities.
Government must adopt a growth-oriented strategy that encourages private sector investment, fosters entrepreneurship, and modernises education and vocational training.
Structural reforms are necessary, but they must be complemented by policies that stimulate growth and job creation.
Pakistan stands at a crossroads.
The fast-changing world demands a professionally skilled workforce, not a traditionally equipped young generation emerging from universities each year.
—The writer is contributing columnist, based in Lahore. (jsiddiqui134@gmail.com)
