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Pakistan’s labour force increases to 71.76 million

Karachi, August 02, 2022: Pakistan’s labour force has increased from 65.5 million in 2017-18 to 71.76 million in 2020-21 and the number of employed persons increased from 61.71 million to 67.25 million during the same period.

Similarly, the unemployment rate slightly decreased from 6.9 percent in 2018-19 to 6.3 percent in 2020-21. This shows that 4.51 million people from labour force could not get job in FY2021.

It is to be noted that Pakistan has a large labour force that stands among the top 10 largest labour forces in the world.

Employment to Population Ratio

According to the Labour Force Survey (LFS) 2020-21, overall employment to population ratio is 42.1 percent and this ratio is higher in male (64.1 percent) as compared to female (19.4 percent).

The province-wise comparison also shows the same pattern. In Punjab employment to population ratio is 44.2 percent, followed by Sindh (42.1 percent), Balochistan (38.6 percent) and KP (36 percent), respectively. Fig 1 depicts employment to population ratio.

Employment by Sectors

According to the Labour Force Survey 2020-21, the share of employment in agriculture sector decreased from 39.2 percent in 2018-19 to 37.4 percent in 2020-21. This sector is the key source of supply of raw material to the other sectors of the economy, especially industrial sector. The significant share of employment from agriculture sector is shifted to industry and services sector due to technological transformation.

The services sector is the largest growing sector of the economy and the share of employment in services sector is 37.2 percent in 2020-21. Share of employment in construction sector has increased from 8.0 percent in 2018-19 to 9.5 percent in 2020-21.

Wholesale and retail trade sector has shown 14.4 percent employment in 2020-21. The employment level in transport/storage & communication remained same in the period under review and share of employment in community/social & personal service sectors increased from 14.9 percent in 2018-19 to 16.0 percent in 2020-21.

Youth Employment

According to the Labour Force Survey 2020-21, the overall unemployment rate is 6.3 percent with prevalence of higher unemployment rate 12.2 percent among 20-24 years compared with 11.8 percent in 2018-19. Youth unemployment rate is quite high as compared to the average unemployment rate.

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