ISLAMABAD, Sep 14 (APP):International Labor Organization (ILO) on Thursday indicated that reduced job growth and rising unemployment could affect Pakistan’s progress.
According to ILO new labor market update, the increasing labor market challenges reflect the cumulation of Pakistan’s economic distress, following from the shock of the COVID-19 crisis, the 2022 floods and exacerbated by the recent macroeconomic turmoil.
The brief examines the labor market trends in Pakistan and presents estimates of the impacts
of the lingering crisis on employment outcomes in the near term.
According to ILO estimates, in 2023, Pakistan’s employment-to-population ratio has fallen well
below its pre-crisis trendline at 47.6 per cent while the number of unemployed persons is
expected to reach 5.6 million—a surge of 1.5 million since 2021.
The report also highlights that the female unemployment rate, which is historically at least 1.5
times that of male rates, could reach a high of 11.1 per cent.
Pakistan’s recent agreement with the IMF, securing a USD 3 billion Stand-By Arrangement (SBA) in July 2023, aims to avert a debt default and shore up investor confidence.
However, the SBA and the squeeze on public financing required in its implementation are likely to add further stress to labor market prospects, at least in the short term.
“Pakistan is facing a multitude of challenges that are taking a heavy toll on its labor markets while driving greater informality and out-migration. The ILO, through its Fourth Decent Work Country Programme (DWCP), is dedicated to addressing the plight of workers and struggling enterprises and to finding solutions that will help increase the security of their livelihoods through these difficult times,” said Geir Tonstol, ILO Country Director for Pakistan.
He further said that ILO would reinforce social dialogue as an instrument for social stability and develop integrated provincial-level inclusive recovery strategies for decent job creation, with a particular focus on women and youth.
