TOPIC: MAJOR ECONOMIC PROBLEM OF PAKISTAN

ROLL NUMBER: 21244

DEPARTMENT: PAK STUDIES

SEMESTER: BS 7TH BRIDGING

SUBMITTED TO: DR ABID ABBASI

SUBMITTED BY: MARIA AKHTER

01 Introduction 03
02 Statement of problem 03
03 Significance of study 04

04 Justification of study 04
05 Research objectives 04
06 Research questions 04

07 Theoretical framework 04
08 Methodology 05
09 Literature review 05

10 Scheme of study 06
11 References 06
 Unemployment in Pakistan,

A Case Study of Rawalpindi

Introduction:
Unemployment is a worldwide problem but in Pakistan unemployment is increased day by day.
In Pakistan unemployment is at its highest peak. Employment is an economic term means
occupation. To engage doing something productive is to be employed. So Unemployment means
absence of employment. Unemployment is a condition when the citizen of a country actively
seeking for job also able for a job and can’t find any job. Now a day’s Pakistan is suffering from
many problems, Unemployment is one of them. Unemployment is a social evil of far-reading
consequences. It spells Starvation, disease and death. The Pakistani rate of unemployment
increased by 6.5 percent, and we can say that one out of every 10 persons in the country is
experiencing unemployment. The statistics from the urban areas for the unemployment rate were
taken and it increased by 2 percent to 10.1 percent and in rural areas it increased from 4.3 percent
to 5 percent. In the year 2020, when the unemployment rate in Pakistan was approximately 4.45
percent, a minor decrease from 4.65 percent the previous year. The factors of unemployment are
numerous. The major factors of unemployment in Pakistan are as follows Poor Governance,
Political Instability, and Corruption Major Factors of Unemployment in Pakistan

The jobless people can always be dangerous to a nation’s well-being. Those youth of the country
who are unemployed are getting frustrated and falling a prey to drug addiction, theft, violence
and many other social harms. Terrorists, drug traffickers and smugglers are engaging them in
evil activities. The people are getting so much depressed and people committed suicide just
because they were unemployed. The unemployment rate is the ratio of unemployed individuals
in the labor force. Unemployment undermines the social and economic stability of the country.

Statement of problem:
Unemployment is one of the most challenging issues of Pakistan in current years. There is
several cause of unemployment. The increased population leads to higher unemployment rates.
As the number of people who are looking for jobs is increasing, it is more difficult to arrange
jobs for all these huge numbers of workers. There is a global rapid technological change which
plays a big role in the increased unemployment problem. Many jobs which were handled by
hands are being done by different machines and technology nowadays. The new advanced
technology replaced the low skilled or unskilled workers in different factories. This made
production faster and more accurate, but it resulted in more unemployed people. The lack of
education or skills for employment. This happens when the qualifications of a person are not
sufficient to meet his job responsibilities. If the education was not directed towards the labor
market then a mismatch occurs thus leading to structural unemployment.
Significant of the study:
This research holds personal and professional significant of the research. The Government needs
guidelines from academia to end the unemployment. This research provides guidelines to me,
other students, researcher, NGO’s and for policy maker. The research is for the purpose of
awareness of unemployment in district Rawalpindi.

Justification of the study:

Research Objectives:
The objective of the research is as under.

01. To examine the cause of unemployment in Pakistan.

Research Question:

01. What is the cause of unemployment in Pakistan?

02. What is the current situation of unemployment in district Rawalpindi?

03. What is the impact of unemployment in district Rawalpindi?

Theoretical framework:
The traditional theories of aggregated unemployment and output can broadly classified in
neoclassical. The neoclassical theories of unemployment are based on the walrasian general
equilibrium model of perfectly competitive market. In Walrasian general equilibrium model,
labor market is like all other markets in the economy, a perfectly competitive one and there is no
reason why the market should not clear. If there is unemployment in a walrasian labor market,
unemployed workers would immediately bid down the wages unit the supply and demand for
labor is again in balance. If the firm accepts the worker’s offer, we conclude that the market for
labor is walrasian. In this view all observed unemployment is voluntary unemployment.
Unemployment of people moving between jobs and of those are ready to work only at the wages
higher than the prevalent wage rate. This is the neoclassical model of unemployment. It was
necessary to augment the model to bring it more in tune with reality. The research theory
attempts to do this by modeling unemployment as an equilibrium phenomenon.
According to A.C Pigou search and matching unemployment is actually a form of frictional
unemployment which arises because of the frictions in shifting between jobs generated by the
fact that skills are to be match with vacancies in the job market.

The importance of search was emphasized by Edmond Phelps in his book “Macroeconomics
Foundation of Employment and Inflation Theory” published in 1970.

Methodology:
The researcher has used multiple techniques or methodologies in the field to conduct this
research. The method used in research is descriptive method. In research used quantitative
approach .For data collection used secondary sources Books, journals and newspaper.

Following are the findings of the study in the district of Rawalpindi:

 Survey that I have conducted shows that 40% of post graduate are unemployed.
 90% people applied for the job.
 Result shows that 30% people are those who get job.
 40% people’s job matches with their qualification.
 When asked that they are satisfied with their pay 50% replied in negative.
 60% people say that they are the supporting member of their family.
 Result shows that 60% people are afraid of unemployment.
 Survey results show that unemployment rate is increased 100% due to different reasons.

Literature Review:
An important aspect of research is to go through its relevant literature. It provides help in the
research because it contains knowledge about the ideas of the research. Unemployment is one of
the most visible indicators of economic activity.

The 21st century workplace is unique, thus, people who have both adequate and demanded skills
can easily get appropriate jobs. On the other hand, many people still do not have jobs due to a
lack of the needed skills or the impact of a skills mismatch problem, which leads to
unemployment in many countries. The numbers of unemployed vary from one country to other.
The concept of unemployment is defined based on a standard and a national definition. The
standard definition defines it as the number of the labor force who is without work, but seeking
employment. While the national definition refers to it as the total of individuals not working. It is
also defined as the people who are not working, but are willing and able to work. It is defined as
the number of people from ages 15 to 65 years which are unemployed and seeking work.
Unemployment agree that seeking jobs and the ability to work are the main characteristics
of unemployed people. Since unemployment leads to negative economic, social, and security
outcomes.

Scheme of study:

This research proposal consists of different parts. First is the introduction of the research
proposal. It starts with statement of the problem and defines objectives, significance of the study,
research questions, research methodology, literature review, theoretical perspective and at last
reference of study of unemployment.

Refrences:
International Journal of Computer Applications ‘A Systematic Literature Review and Analysis of
Unemployment Problem and Potential Solutions’ Vol-182 , March 2019

Jeffrey Parker, Chapter 14 ‘Model of unemployment economics’, 2010

Waqqas Qayyum, Cause of youth unemployment in Pakistan, 2007.

Search Theory of Unemployment https://youtu.be/Qp3MfdPM90k