CAUSES OF UNEMPLOYMENT

CHALLENGES TO AGRICULTURAL SECTOR:

Pakistan is an agricultural based country as nearly 62% of the population lives in rural areas and
their source of income is agriculture. But due to floods, other climatic changes, technology
backwardness and water shortage they are not able to produce as much they should be. This
affects the per acre yield which causes people to lose their jobs. In 2009-2010, the growth in
agriculture was only 2 % against the expected 3.8%.

LESS FOCUS ON EDUCATION AND RESEARCH:

In order to become a developed country, one has to spend on research and education but
Pakistan’s government is not giving much attention to this sector as required. More specialized
field can be created by spending on education which can increase the job opportunities. Pakistan
invests just 2% of the GDP to this sector.

INCREASE IN POPULATION:
In 2010, the population of Pakistan has reached to 173.54 million. Population is increasing and
job opportunities are becoming lesser and lesser making difficult for more than half of the
population to even survive. Besides negligent government, deep rooted government, poor
education system, unavailability of quality education and feudalism is also making the conditions
worse.

UREALISTIC ATTITUDE TOWARDS CAREER CHOICE:

Pakistan is among those countries which have highest number of youth but the unrealistic goals
of youth are increasing unemployment in Pakistan. After educating they wait for a white-collar
job with high salary in a multinational firm without experience. Not only they dream unrealistic
but they wait until they get the job of their dreams hence losing the chances to get experienced
by doing the lower salary jobs for the time being and moving to high salaries after promotion or
moving upwards in career path.
LACK OF INFRASTUCTURE:
Pakistan lacks in infrastructure. Especially in the fields of energy, telecommunication and energy
sector. This is an obstacle in setting a new industry.

LACK OF CAPITAL EXPENDITURES:

Despite of severe unemployment problem in Pakistan, Government is not paying due attention to
this matter. It is not interested in employing capital expenditures so that the new jobs can be
produced.

EDUCATION SYSTEM:
Our education system is also responsible for unemployment. When a new field is introduce
people rush to seek its education in order to get jobs but these institutions give admissions to
more people than the jobs available or to be available in the country for that field.

REFERENCE SYSTEM:
Reference system has become most popular in Pakistan for hiring. Companies ask their current
employees to refer someone suitable for the job. People being asked generally take the names of
the person in their families or relatives. That’s how less people searching for the job come across
a vacancy and more people lose the opportunity to apply. This nepotism creates unemployment
in the country.