INTRODUCTION

Unemployment is a global phenomenon. Mostly the problem occurs in developing countries of the world, which not only affects them socially but also psychologically. The study focuses on the causes and consequences of unemployment in Pakistan and attempts to offer recommendations for its alleviation.

SEQUENCE
PART 1.
a. UNEMPLOYMENT

b. TYPES OF UNEMPLOYMENT

CAPT MUHAMMAD ZIA BASHIR KHAN

SEQUENCE
PART 2.
a. MEASURING UNEMPLOYMENT b. UNEMPLOYMENT IN PAKISTAN

MR. MUNAWAR REHMAN

SEQUENCE
PART3. a. FACTORS OF UNEMPLOYMENT IN PAKISTAN

MR. AMIR ANWAR

SEQUENCE
PART 4.

a. CONSEQUENCES OF
UNEMPLOYMENT IN PAKISTAN

MR. JAMIL KHAN

SEQUENCE
PART 5. a. RECOMMENDATIONS
MISS UZMA

CONCLUSION FAQS

UNEMPLOYMENT

UNEMPLOYMENT
Unemployed
A person is said to be "unemployed" if he or she is looking for work, is willing to work at the prevailing wage, but is unable to find a job.

Unemployment
Unemployment refers to the condition of being unemployed, or to the number or proportion of people in the working population who are unemployed. ILO (International Labour Organisation) measure the number of people available for work and actively seeking employment

TYPES OF UNEMPLOYMENT

VOLUNTARY UNEMPLOYMENT
Unemployment when attributed to personal decisions.
Leaving one job and looking for another

INVOLUNTARY UNEMPLOYMENT
Unemployment when attributed to the socio economical environments(external environments).
Modern trends in technology.

LONG TERM UNEMPLOYMENT

The condition of unemployment for more than one year there by leading to social exclusion.

SHORT TERM UNEMPLOYMENT

The condition of unemployment less than a year is referred to short term unemployment
Fresh job seekers Switching employees

FRICTIONAL UNEMPLOYMENT

Frictional Unemployment - dynamic labor force in a

stable economy with imperfect information.
It occurs when a worker moves from one job to another. While he is searching for a job, he is experiencing frictional unemployment. Fresh graduates

Short term

Promoters Imperfect information disincentives

STRUCTURAL UNEMPLOYMENT
Structural Unemployment - stable labor
force in a dynamic economy with mismatch between skills of labor and skills demanded.
Caused by a mismatch between jobs offered by employees and potentials of employers Tech bubble Long term

SEASONAL UNEMPLOYMENT
Seasonal Unemployment - unemployment that results from the normal seasonal change in aggregate economic activity or environment. Tourism Sky diving Training activities variable

CYCLIC UNEMPLOYMENT
Cyclical Unemployment - stable labor force in an unstable economy. Unemployment that results from a decline in aggregate economic activity

Demand Deficient Unemployment where AD is less than AS

Great depression of 1930 Present state

CLASSICAL UNEMPLOYMENT
Real Wage or Classical Unemployment caused by wage rates being held above market clearing levels

TECHNOLOGICAL UNEMPLOYMENT
Technological Unemployment caused where people are put out of work by changes in technology

Down sizing because of advancement

GEOGRAPHICAL UNEMPLOYMENT
Geographical unemployment:occurs due to geographical immobility of labor Incentives for investors Reducing barrios to free movement

THIN LINING UNEMPLOYMENT

Hidden unemployment Casual unemployment

BRAIN CHANGE

MEASURING UNEMPLOYMENT

MEASURING UNEMPLOYMENT
UNEMPLOYED

EMPLOYED

LABOUR FORCE

MEASURING UNEMPLOYMENT
Worked one or more hours for pay? No Temporary layoff? Yes Unemployed Yes Employed

No
Searched for work? No Not in Labor Force

Yes
Unemployed

MEASUREMENT OF UNEMPLOYMENT
Employed persons + Unemployed persons = Total labor force + Not in labor force = Civilian noninstitutional population (16 and over)

MEASURING UNEMPLOYMENT

Unemployment Rate (percent) = Unemployed X 100 Total Labor Force

UNEMPLOYMENT IN PAKISTAN

UNEMPLOYMENT IN PAKISTAN
LABOUR FORCE 50.58 million country comparison to the world: 11 LABOUR FORCE BY OCCUPATION agriculture: 43% industry: 20.3% services: 36.6% UNEMPLOYMENT RATE 2009 : 7.40% WORLD RANKING : 92

UNEMPLOYMENT IN PAKISTAN

UNEMPLOYMENT IN PAKISTAN

GEARING UP

FACTORS OF UNEMPLOYMENT

FACTORS OF UNEMPLOYMENT

Landless rural area

Nepotism

Decreased investment Population growth

Insurgency

Globalistation

FACTORS OFUNEMPLOYMENT
Poor Governance: Good governance is an essential pre-condition for employment as it establishes the enabling regulatory and legal framework essential for the sound functioning of land, labor, capital and other factors of market. Whereas, good governance is considered to be non-existent in Pakistan and poor governance is taken one of the key underlying causes of unemployment in Pakistan.

FACTORS OF UNEMPLOYMENT
Lack of Education & Rampant Illiteracy: The countrys education indicators portray a dismal picture when compared with other countries. More specifically, the public expenditure on education have been around 2% in Pakistan compared to other (low income) countries of the region. Since, foundation of any development in socio-economic sector is corollary to the level of education / skills of its human capital therefore, general perception that one of the main causes of the unemployment in Pakistan is pitiable state of education across the country.

FACTORS OF UNEMPLOYMENT
Landlessness in Rural area: Being from an agricultural country, most of the people of Pakistan have farming as their primary source of living. This source is shrinking with the division of lands amongst the family members and increasing population thereby depriving honorable way of living to the families furthermore increasing unemployment.

FACTORS OF UNEMPLOYMENT
Non-Transparency in Resource Allocation: The lack of transparency in public sector planning, budgeting and allocation of resources in Pakistan has been the hallmark of our financial resource planners and policy makers. Political or the ruling leadership has never responded to the real needs of the populace and accountable to the promises they made with the public. Resultantly, without having regards of the real stakeholders or the potential beneficiaries, the priorities for the development were determined by the bureaucracy

FACTORS OF UNEMPLOYMENT
Political Instability: Political stability is fundamental to the creation of an enabling environment for growth and development. Economic agents, particularly investors, must be reassured with regard to the continuation of policies, should have confidence in the governments credibility in order to operate effectively, and in the case of investors, be induced to take risks. Unfortunately the political dilemma has furthermore cornered this issue

FACTORS OF UNEMPLOYMENT
Insurgency : The perceived security threat on its eastern border that has dominated Pakistans political culture, followed by continuous threat on western borderand war against terrorism as first line state . All these factors have in turn affected growth, and subsequently unemployment levels in the country.

FACTORS OF UNEMPLOYMENT
Corruption & Corrupt Practices: Corruption is one of the most dangerous factor that eroded Pakistans economic and governance system since its inception. In 2008, Pakistan was ranked as the 46th most corrupt country out of the 180 countries of the world. The persistently rampant corruption in Pakistan not only jeopardizes its resolve to fight against unemployment rather adding to the menace of unemployment from all direction.

FACTORS OF UNEMPLOYMENT

FACTORS OF UNEMPLOYMENT
Nepotism: nepotism at every level in Pakistan has polluted the environment both socioeconomically and psychologically, the employee who suits the jobs best is kept deprived to flourish his abilities. Globalisation: it has further increased the menace of unemployment in two basic ways a. Brain drain b. Global recession

FACTORS OF UNEMPLOYMENT
Social order: in Karachi, Balochistan ,Punjab and almost every parts of the country supplemented with war against terror has retarded Pakistan production process. The worsening situation is affecting the social order as a whole and adding to uncertainties in business circles, thereby increasing unemployment in the country.

FACTORS OF UNEMPLOYMENT
Population Growth: Due to rapidly increasing population the problem of food shortage in most developing countries are compounded by inadequate provision of basic services such as health and sanitation facilities, shelter and safe drinking water, also lack of education and increasing unemployment. Owing to shrinking developmental funds visa vise population growth. Resultantly the phenomenon gives further rise to the unemployment rate.

FACTORS OF UNEMPLOYMENT
Privatization: is yielding opposite results then the intended ones. National assets are going in to foreign hands, companies are monopolizing their ownership, they downsize and do not except the existing criteria, thereby playing a solid role in unemployment

FACTORS OF UNEMPLOYMENT
Declining Foreign Investment: Owing to number of factors Pakistan has not been able to attract needed level of FDI despite its pro liberalization and investor friendly policies. These factors include; political instability, rising trend in terrorism, social disorder and unsatisfactory law and order situation particularly in the, city of Karachi, the largest industrial and commercial Centre and the only port of the country. thus feeding the unemployment rates.

FACTORS OF UNEMPLOYMENT
Energy crises: Leading example in this case is the textile industry of Faisalabad, where almost 70% of growth has been jeopardized because of energy crises thereby increasing unemployment.

LINKING A-HEAD

CONSECUENCES

CONSEQUENCES
Individual effects:The individual costs for the unemployed
Loss of income Fall in real living standards

Loss of self-esteem
Increased health risks
Stress Reduction in quality of diet Social exclusion because of loss of work and income

Deskilling and demotivation

CONSEQUENCES
Social effects
Low morale values Security threats Increase crimes Family breakdowns Vandalism Increased involvement of foreign elements (MOSSAD, RAW, CIA, MOIS, NDS)

CONSEQUENCES
Economical effects
Fall in sales Fall in profits Fall in revenue Decreased economic growth

Positive aspects
Bulk of employers always available Less turnover

KEEP AWAKE, BORING PART IS OVER

RECOMMENDATIONS

RECOMMENDATIONS
Good governance Education Transparency in resource allocation Stable political government Refined policies Continuity of policies Security of investors Broadly defined internal security plans

RECOMMENDATIONS
Security of investors Broadly defined internal security plans Advanced skill refresher courses Check and balance Better strategies and planning

CONCLUSION

line in Pakistans present a depressing challenge for our socio-political gurus and economic managers. unemployment in Pakistan can only be alleviated by sharpening the human capital by improving literacy and investing in skill development, good governance, community empowerment, long term economic growth,

socio- political justice and real term democratic culture.

The international community under the guise of Friends

of Pakistan on 17th April 2009, at Tokyo rallied to

support Pakistans economic program with more than healthcare and social justice for all in stable social order.

YOUR QUESTIONS ARE SIGN OF YOUR INTEREST AND OUR SUCCESS

GO AHEAD

ITS TIME FOR CHAGNE

!!!