AMN / NEWS DESK
Pakistan’s unemployment rate has risen sharply over the past five years, reaching 7.1% in 2024-25, up from 6.3% in 2020-21, according to the latest Labour Force Survey (LFS). The findings, released in Islamabad, reflect the compounding impact of economic slowdown, IMF-mandated fiscal tightening, and climate-related shocks that have strained livelihoods across the country.
The LFS reports that the number of unemployed individuals has increased from 4.51 million in 2020-21 to 5.9 million in 2024-25, marking a surge of 1.39 million. Provincial data shows Khyber Pakhtunkhwa with the highest unemployment rate at 9.6%, followed by Punjab (7.3%), Balochistan (5.5%) and Sindh (5.3%). The News reported on Wednesday, citing the Labour Force Survey (LFS).
Despite the rise in joblessness, the survey notes an increase in average monthly income—from Rs 24,028 in 2020-21 to Rs 39,042 in 2024-25—reflecting inflationary adjustments rather than improved purchasing power.
Launching the report, Federal Planning Minister Ahsan Iqbal attributed the rise in unemployment to the IMF programme, which “compressed demand and economic activity,” and to two major climate disasters that further weakened labour markets. He added that macroeconomic stability has now been restored, claiming that an economic turnaround would generate fresh employment opportunities. The minister again criticised the former PTI government for what he described as economic mismanagement during 2018-2022.
The LFS highlights widening gender disparities: male unemployment rose by 0.79 million and female unemployment by 0.59 million. The female jobless rate stands at 10.5%, significantly higher than the male rate of 6%. Youth continue to be the most vulnerable, with unemployment peaking at 12.9% among those aged 15-24.
Education-linked patterns show mixed trends: unemployment increased among those with no schooling and below-matric levels, but declined among degree holders and postgraduates. Alarmingly, women with higher education recorded a 23.9% unemployment rate, the highest among all female groups.
The survey also reveals persistent gender gaps in labour participation—men constitute 75% of the labour force despite being just over half of the working-age population, while women represent only 25%.
Overall, the findings underscore Pakistan’s deepening labour-market challenges at a time when economic recovery remains fragile.