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Introduction:

Not only the size of the population, but also its characteristics play an important role in the


development of a country. Therefore, with the growing population in terms of size and
age, the country's ability to provide social protection, healthcare, education and other basic
services such as housing, sanitation, water, food, etc. becomes a challenge. Pakistan is the
fifth most populous country in the world. According to the National Institute of Population
Studies, the estimated population of Pakistan in 2019 is 211.17 million. Therefore, the
population density is 265 per km2. The composition of the country's population is skewed
towards the working-age population. The population that falls in the 15-64 age group is 61.4
percent, while 12.1 percent of the population is between 0-4 years old and 22.1 percent is
between 5-14 years old. Harnessing this demographic dividend and equipping young people
with skills to meet the demands of the domestic and international market would increase
industrial productivity in the country and more remittances from abroad. Therefore, the
government focuses on job creation through skills development. Employment is seen as a
key mechanism through which the benefits of growth can be distributed to
the poor segments of society.

Pakistan has the ninth largest labour force in the world with a population growth rate of


1.94 percent. However, with such a growth rate, a large number of young workers are
added every year. According to the 2017-18 Labour Force Survey, the total number of
employed persons in Pakistan was 65.5 million while the unemployment rate was 5.8
percent. According to the survey, the highest rate of unemployment (11.56%) is between
the ages of 20 and 24, indicating youth unemployment.

The Prime Minister launched the Kamyab Jawan Youth Entrepreneurship Scheme (PMKJ-
YES) in October 2019. This scheme will disburse 100 billion rupees to 140,000 young
entrepreneurs over 5 years, creating about 1 million youth employment opportunities in
Pakistan. Below are the 6 major programs included in the program:

 Youth Entrepreneurship Scheme (YES)


 Hunermand Pakistan Program (Skills for all)
 Green Youth Movement
 Startup Pakistan
 National Internship
 Jawan Markaz

The Government has launched two of the components under Prime Minister's Kamyab

Jawan Program i.e., Youth Entrepreneurship Program (YES) and Hunarmand Pakistan

(Skills for All). However, the other four components are under process with concerned

stakeholders to be launched soon.

Impact of Covid-19 on Labor and Unemployment

Initial ILO estimated an increase in global unemployment of 5.3 million to 24.7


million. Likewise, an initial assessment by the World Trade and Tourism Council predicted a
25 percent drop in international trade in 2020, putting millions of jobs at risk. According to
preliminary estimates by the Pakistan Institute of Development Economics (PIDE), the
COVID-19 pandemic has negatively impacted employment in the country in the last quarter
of 2019/20. According to initial estimates, with limited restrictions around 1.4 million
jobs were lost, equivalent to 2. In monetary terms, the loss of wages amounts to Rs 23.6
billion. Under moderate restrictions, job losses were almost as high as
Rs 12.3 million, around 20% of the workforce, and lost wages were about Rs 209.6
billion. A complete shutdown of 18.53 million people occurred and 30% of the labour force
was out of work with losses of Rs 315 billion.

Literature Review:

The development of a nation's human resource is essential for both its economic
progression and its citizens' social welfare. However, effective management of human
resources can increase economic output and lessen social unrest. Pakistan is ranked fifth in
being the world's most populous nation (World Bank,2018) . The National Institute of
Population (NIPS,2021) pays heed to the studies, according to which Pakistan is expected to
have 224.78 million people in 2021, of which while 141.96 million people dwell in rural
areas, 82.83 million people live in metropolitan areas. This makes a roundabout of 282
people living in each km2.This brings us an advantage; one of the ten largest labor forces in
the world is found in Pakistan. To create enough jobs to accommodate such a massive labor
force is a challenge in itself. Laser focus on skill development can erode away the poverty in
the country. (NIPS, 2021)

The number of employed people increased from 61.71 million to 67.25 million throughout
the period and labor force from 65.5 million in 2017–18 to 71.76 million in 2020–21. This
increase was due to the implementation of strategic policies that were curated accordingly.
From 6.9 percent in 2018, the jobless rate marginally decreased to 6.3 percent in 2020–
2021.This demonstrates the 4.51 million workers who did not get employment in FY2021
was due to the post-pandemic repercussions which further caused a plethora of obstacles.
(PES,2021)

This leads the attention towards the formation of employment to population ratio post
corona. The number of people employed as a percentage of the working-age population (10
Years & above) is known as the employment to population ratio (Oxford Dictionary,2014).
The overall employment to population ratio was 42.1 percent, according to the Labor Force
Survey (LFS) 2020–21. The ratio is larger for males (64.1 percent) than for women (19.4
percent); this can be blamed upon the discouragement of women participation in the labor
force or stigmas attached to those who wanted to partake in paid work regardless the fall of
pandemic where salaries and savings both went scanty. The comparison between provinces
reveals the same pattern. Punjab has a 44.2 percent employment to population ratio,
followed by Sindh (42.1 percent), Baluchistan (38.6 percent), and KP (36%), in that order.
This largely depends upon the opportunities provided in these provinces and the efficiency
of the management. (Pakistan Labor force Survey 2020-2021). Based on the information
available, the Government of Punjab anticipated in late April 2020 that the COVID-19
pandemic would cause short-term economic losses to the province’s GDP of between $3
billion and $5 billion (Government of Punjab 2020).

In the worst-case scenario, a prolonged lockdown lasting a few months would result in
losses to the government of around $20 billion. Small and medium-sized businesses were
impacted, especially in the manufacturing centers of Sialkot and Lahore (UNDP 2020).
Punjab had a weak export demand for its key industries and suffered job losses of about
$2.2 billion, with job losses in the near term projected to be between $4 million and $7
million (Government of Punjab 2020). According to estimates from the Pakistan Institute of
Development Economics, 58% of Punjab’s workforce was vulnerable to job loss (PIDE 2020).
Contrary to this, the world also saw Pakistan’s boom in the freelancing industry before the
upheaval of corona to the point where the country broke the set benchmark; Pakistan
became number 1 in the industry with enrolling over 2 million freelance agents( DigiSkills,
2018) . Later on, the pandemic had an impact on Pakistan's booming gig economy for
independent contractors in recent years. Covid-19 quickly caused widespread disruption
and finally made the whole world's population stay indoors. (Dawn,2020)

Businesses needed to survive in this unsettling environment due to the new normal of
staying at home and working from there. In order to address this difficult circumstance,
product offers were reformulated and workspaces went from being real to virtual.
According to the article shared by digiskills.pk, there was a drop in clientele by 8.6% due to
the shortage of money. Maaz, the writer says, “Overall, our survey shows that while
demand for freelancers appears to have slowed in the short-term, many are optimistic
about the future and believe that it’s just a matter of time until businesses get back on their
feet and return to outsourcing. As more businesses around the world adapt to working
online, it’s clear that remote work may be here to stay.” Hence, a comeback is expected.
(Maaz,2020)

The agriculture sector, another crucial sector to the growth of the economy as it contributes
significantly to GDP, was seen disrupted too (World Bank,2020) . The proportion of
employment in the agriculture sector declined from 39.2 percent in 2018–19(PBS 2019) to
37.4 percent in 2020–21, according to the Labor Force Survey 2020–21. The primary
supplier of raw materials to other economic sectors, particularly the industrial sector, is this
industry (FAO, 2020). Due to technological change, a sizable portion of jobs previously in the
agricultural sector has moved to industry and services. The economy's fastest-growing
sector is the services industry, which accounted for 37.2% of all jobs in 2020–21.

On the other hand, the manufacturing and construction industries are seen as important
drivers of economic development. Construction sector employment climbed from 8.0
percent in 2018–19 to 9.5 percent% between 2020 and 21. This growth demonstrates the
creation of further new employment possibilities in the country. Millions of employments
for workers who are semi-skilled, skilled, and unskilled could be created by the expansion of
these sectors. Additionally, these industries contribute significantly to both formal and
informal sector revenue generation.

In 2020, employment in the wholesale and retail trade sector is projected to be


14.4%.21(Labor Force Survey,2020). The employment rate in communication, storage, and
transportation remained the same in the time under review and percentage of employment
in social, personal, and community services grew from 14.9 percent in 2018–19(Labor Force
Survey,2019) to 16.0 percent in 2020–21 (Labor Force Survey 2020).

To further cope up the defunct unemployment post covid, Pakistan came across many
strategies to work prior to improve the employment and enhance circulation of money. The
government has created a more comprehensive roadmap for young people in order to
support Goal 8 of the Sustainable Development Goals (SDGs) (Government of Pakistan 2020)
, which is Decent Work and Economic Growth, improvement as part of the National Skill
Strategy (NSS), which places an emphasis on governing, investigating multiple financial
sources, and building capacity through employable talents, quality control, equity of access,
ownership of the industry, and skill development for the global market to boost remittances
abroad. Furthermore, emphasis was placed on using Recognition of Prior Learning (RPL) to
retrain current employees and providing kids without jobs with a loan that is subsidized.
Furthermore, the debut of a crucial component of the competency-based training and
assessment, The National Skills Strategy (NSS), on which the continuing Technical and
Vocational Education (TVET) and Reform of the TVET (education and training) sector in
Pakistan have been launched. (Government of Pakistan, 2021)

Discussion:

Given Pakistan's massive population, the government will find it difficult to address one of
the country's most serious issues, unemployment. The first step toward reducing
unemployment in Pakistan is for the Pakistani government to create a comprehensive plan. It
is essential to establish well-known training and technical institutes where skills programmes
can be delivered. In Pakistan, the retirement age is 60. Many government institutes have
officers who are unable to work continuously for two hours yet are nonetheless on the job.
Because of them, many talented people are still looking for work despite their ability, talent,
hard work, and working power due to a lack of vacancies..Remove the energy situation so
that investors will flock to Pakistan, resulting in the creation of jobs. Peace should reign
throughout the country so that foreign investors would be willing to invest in Pakistan. The
agriculture industry must be improved. The agriculture industry must be
improved. Multinational firms want to conduct business in Pakistan. To counter the tide of
overpopulation, family planning centres should be constructed. Unemployment is defined as
the proportion of people who want to work and are actively looking for work but are unable
to find work. To fund the private sector, a stable government is essential. The government
should assist the private sector in its development. It will increase employment opportunities.
The government should end nepotism and favoritism. Employment opportunities should be
available based on skill and ability. To encourage self-employment, the government should
make loans available to jobless skilled labourers. To alleviate unemployment, financial
facilities should be made available.

Pakistan's education system has not evolved in response to changing circumstances. There are
various technical institutes that teach students, however this training is not in line with market
demands. They are also uneducated. From the primary level to university graduates, they
must be trained in a variety of skills, with a particular emphasis on developing
entrepreneurial skills and characteristics in youth. "How experienced are you?" is a frequently
asked question in most job interviews. Despite the fact that talented people are given the
opportunity to gain experience, everyone expects them to have extensive field expertise.
Because the law is not seen as a significant or respected component of our society. Everyone
feels himself superior and does whatever he wants since the law is not followed. As a result,
the system suffers, and people avoid investing or establishing businesses in the country.
Pakistan has been endowed with vast natural resources, but owing to a lack of government
focus, these riches have not been properly used. Faced with an energy crisis, the government
is unable to supply basic necessities such as power, water, gas, and housing. Electricity
shortages force industrialists to lose money, and as a result, they relocate their operations to
other nations.

It is our honorable obligation as a nation to remove the darkness from our land. Only when
we all perform our parts can our country improve. Large and successful businesses just want
to recruit the finest employees. No organisation is willing to recruit persons who are unclear
of how to conduct themselves professionally. Unauthentic sources must be eradicated. As a
result, deserving candidates should be hired. The government should create an atmosphere
that encourages industrialists to establish more and more businesses. The government should
provide several facilities and perks to investors in order to encourage them to invest more in
Pakistan. The education system should be modernised and systematised. The application of
the law should be rigorously monitored. There is no difficulty in the world that cannot be
solved with drive and enthusiasm. The only thing that needs to be done is to work together
and responsibly. Nobody can stop the nation from progressing if each citizen begins to
perform his or her own duties.

References:
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Available at: https://www.finance.gov.pk/survey/chapter_22/PES12-POPULATION.pdf
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Desk, W. (2022) Govt unveils Pakistan Economic Survey 2021-22, ARY NEWS. Available at:
https://arynews.tv/govt-unveils-pakistan-economic-survey-2021-22/ (Accessed: December
8, 2022).

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Pakistan: Population growth rate adds to problems - Pakistan (2011) ReliefWeb. Available at:
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(Accessed: December 8, 2022).

Ross, C. and Reeve, N. (no date) Survey and census methods: Population Distribution and
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O'Neill, A. (2022) Pakistan - unemployment rate 2021, Statista. Available at:


https://www.statista.com/statistics/383735/unemployment-rate-in-pakistan/ (Accessed:
December 8, 2022).

https://www.digiskills.pk/BlogDetails.aspx?BlogTitle=Effects-of-Covid-19-on-
Freelancing&BlogId=MjA

Adbheadhoncho (2022) Publications, Asian Development Bank. Asian Development Bank.


Available at: https://www.adb.org/publications (Accessed: December 8, 2022).

Farms and farm households during the covid-19 pandemic (no date) USDA ERS - Farms and
Farm Households During the COVID-19 Pandemic. Available at:
https://www.ers.usda.gov/covid-19/farms-and-farm-households/ (Accessed: December 8,
2022).

'gig' economy gains traction (2022) The Express Tribune. Available at:
https://tribune.com.pk/story/2385536/gig-economy-gains-traction (Accessed: December 8,
2022).

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