Pakistan’s Unemployment Rate Climbs to 7.1%

Pakistan’s unemployment rate has climbed to 7.1% over the past four years, up from 6.3% recorded in the 2020-21 Labor Force Survey, according to the latest data released by the Pakistan Bureau of Statistics. The data, collected online for the first time, highlights mounting pressure on the country’s job market even as average wages have seen a sharp increase. The survey estimates that around 8 million Pakistanis are currently unemployed, reflecting a 0.8 percentage point rise in the jobless rate over five years. The country’s total population stands at 241.5 million, with more than 77.2 million people in the labor force. About 43% of the population is of working age, while 53.8% remains inactive. The services sector remains the largest employer, accounting for 41.7% of the workforce, or 31.8 million people. Agriculture follows with 33.1% (25.5 million), and industry employs 25.7% (19.9 million). The survey, which covers individuals aged 10 and above, shows that the unemployment rate was 6.9% in 2018-19. Over the past four years, nearly 10 million people have found employment annually, with both male and female employment rates rising. Despite the overall increase in employment, the survey notes a decline in the share of workers in the agricultural sector. The report also shows a significant jump in average monthly wages, which now stand at Rs. 39,042, an increase of Rs. 15,014 from Rs. 24,028 in 2020-21. However, wage disparities persist: men earn an average of Rs. 39,302 per month, while women earn Rs. 37,347. Formal sector employment accounts for 27.9% of the workforce, while the informal sector remains dominant at 72.1%. Among informal sector workers, 73% are men and 66% are women. Chief Statistician Dr. Naeem-ul-Zafar said the government is on track to meet key IMF requirements by the end of 2025, with the labor force survey, livestock census, and an upcoming household income survey forming part of the reform agenda.