By Staff Reporter
ISLAMABAD: Pakistan’s unemployed population has jumped by a staggering 31 percent over the past four years, climbing from 4.5 million in 2020-21 to 5.9 million in 2024-25, as the country grapples with deepening strains in its labour market amid economic uncertainty.
The increase, which added 1.4 million people to the ranks of the jobless, cut across all age groups and both genders, signalling a widespread erosion of employment opportunities, according to a government report released Tuesday by Ahsan Iqbal, the minister for planning and development.
The overall unemployment rate edged up to 6.9 percent from 6.3 percent in the previous survey, with young people bearing much of the burden. For those aged 15 to 24 — a critical demographic in a nation where more than half the population is under 30 — the rate rose to 12.6 percent from 11.1 percent. Among those aged 15 to 29, it increased to 11.5 percent from 10.3 percent.
Men saw their unemployment rate rise to 5.9 percent from 5.5 percent, while women faced a steeper climb, to 9.7 percent from 8.9 percent. The divide was also evident between rural and urban areas: Rural unemployment increased to 6.3 percent from 5.8 percent, and urban areas saw a rise to 8 percent from 7.3 percent.
The findings come from the Pakistan Bureau of Statistics’ Labour Force Survey for 2024-25, the 37th in a long-running series and the first conducted entirely at the provincial level. Data was gathered electronically using tablets, providing a snapshot of a workforce under pressure in one of South Asia’s most populous nations.
Even as unemployment worsened, the survey documented a surge in labor force participation, suggesting more Pakistanis are entering the job market or seeking work amid rising economic needs. The participation rate for people aged 10 and above — those either employed or actively looking for jobs — rose to 47.7 percent from 44.9 percent.
Broken down by gender, male participation increased to 69.8 percent from 67.9 percent, while female participation climbed to 24.4 percent from 21.4 percent. Regionally, rural areas saw a jump to 52.3 percent from 48.6 percent, and urban participation rose to 40.8 percent from 38.8 percent.
The total labor force, which includes all employed individuals aged 10 and above — encompassing paid workers as well as those producing goods for their own use — along with the unemployed, expanded to 85.6 million from 71.8 million. That growth averaged about 3.5 million people per year.
For the first time, the survey offered insights into the gig economy, a growing segment in many developing markets. Gig-based work accounted for 2.9 percent of primary jobs, but it played a larger role in secondary employment, making up 10.6 percent. Women were more reliant on such short-term gigs for extra income: 15 percent of women with secondary jobs engaged in gig work, compared with 9.8 percent of men.
Shifts in employment sectors underscored broader economic transitions. Agriculture’s share of jobs fell to 33.1 percent from 37.4 percent, reflecting a move away from traditional farming. The services sector expanded to 41.2 percent from 37.2 percent, while industry’s portion dipped slightly to 24.9 percent from 25.4 percent.
Amid these changes, wages showed strong gains. Average monthly earnings rose to 39,000 rupees from 24,000 rupees. The gender wage gap narrowed significantly, shrinking to less than 2,000 rupees per month from 4,500 rupees.
The report also highlighted evolving patterns in self-employment and family labor. The proportion of own-account workers — those running their own businesses — increased to 36.1 percent from 35.5 percent, with women driving much of the rise. Female entrepreneurship surged to 25.2 percent from 19 percent.
Meanwhile, the share of contributing family workers, who are often unpaid and predominantly female, declined to 19 percent from 21.1 percent, indicating a shift toward paid opportunities for women.Of the 179.6 million working-age individuals in 2024-25, 117.4 million were involved in unpaid domestic and care activities. Among 92 million men, 50.7 million, or 55 percent, performed such work. For 87.6 million women, the figure was 66.7 million, or 76 percent.
In terms of employment status, employees formed the largest group at 43.5 percent, followed by own-account workers at 36.1 percent, contributing family workers at 19.1 percent, and employers at 1.3 percent. Nearly half of female workers were contributing family members, at 49.7 percent, while almost half of male workers were employees, at 49 percent.
Comparing the surveys, the share of employees rose to 43.5 percent from 42 percent, own-account workers to 36.1 percent from 35.5 percent, while contributing family workers fell to 19.1 percent from 21.1 percent, and employers to 1.3 percent from 1.4 percent.
Outside agriculture, the informal sector remained dominant, accounting for 72.1 percent of jobs — 75.5 percent in rural areas and 68.3 percent in urban ones. Formal sector employment was more prevalent in cities, at 31.7 percent overall, and higher among women at 33.7 percent. Men, by contrast, were more embedded in the informal economy, at 73 percent. The formal sector has seen modest growth over the period.
The report’s release comes as Pakistan navigates fiscal challenges, including high inflation and reliance on international loans, factors that economists say could exacerbate labor market woes if not addressed through targeted policies.
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