Assigned by: Rizwan Pasha Assigned to: Ali Haider 0043 Abrar Hussain 0057 Waleed Adil 0066
MBA 1-B
Definition of 'Unemployment'
Unemployment occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy. The most frequently cited measure of unemployment is the unemployment rate. This is the number of unemployed persons divided by the number of people in the labor force.
Unemployment in Pakistan:
It is a universal problem, even the most advanced & prosperous countries of the world like USA, Britain & Japan are confronted with this problem. As a matter of fact, it is impossible to provide jobs to all. Honestly speaking, this problem exists in our country in an alarming degree. It is a fact that one person out of ten is out of work in Pakistan. The problem is serious in our country because we have unemployment among all the sections of our society among the educated & uneducated, among the skilled & unskilled. It is most unfortunate that highly qualified & professional persons like doctors, engineers & teachers are without jobs. It is painful to see them wandering from door to door in search of jobs. Many of them have gone abroad and are serving the people of other countries.
It is estimated that more than a million people are entering the market for jobs and only a very small percentage is absorbed.
Keeping a very large population unemployed and idle is a matter of great concern. It is a great burden on society and is a breeding ground for crimes, moral & social evils.
In United Nations Development Program report, it tells a different story. There are twenty five million youngsters that are unemployed and moreover, the unemployment rate becomes high from 6.5 to 7.2 per cent in 2013.
Effects of unemployment:
Unemployment whether of a permanent or temporary nature has many adverse effects which are briefly discussed as under: * The unemployment whether of a seasonal or permanent nature undermines the life organization of a worker. The unemployed person faces a discouraging outlook. In utter despondency and frustration, some of them some of them become drug addicts in order to forget their unbearable worries. In this way, they ruin their lives & those of their families. While some others take to anti social activities in order to make ends meet. Once, they enter the world of crimes, it becomes extremely difficult to come out of it. * Those that are unemployed have insufficient resources to maintain their own and their family member’s health. The substandard diet or starvation, the inability to pay for ordinary medical care, all these contribute towards ill health of the unemployed and his family members. Worry & anxiety about inability to provide for dependents ruin the family’s health further and weaken the capacity to put up normal work output. The problem of low health is most serious in the low income group.
* Owing to unemployment in a country, its resources are not utilized to the full extent and production is less than the maximum. This affects the standard of living of the people. Due to poverty, illness, crime & other socioeconomic problems arise leading to social disorganization. Those unemployed are not only a problem to them but are a burden on the society.
* In addition to the physical and mental deprivation of the unemployed bread winner, it affects his family as well. In desperation, the children are sent to industry earlier as child labor with half the normal wage there is dropped and the wife may seek employment in addition to her household duties. Thus, the whole family organization gets disrupted with adverse social effects.
The effect of unemployment on our society:
Unemployment affects not just the person himself but also his family and in the long run the society where he lives.
Unemployment brings with it despair, unhappiness and anguish. It forces people to live their lives in a way they do not wish to and the life expectancy is negatively affected.
Life expectancy is the ease by which people living in a time/place are able to satisfy their needs/wants. Here are the main aspects:
* Mental health: Mental health problems like lack of self-confidence, feeling unworthy, depression and hopelessness. With the lost income and the frustration involved in it, the recently unemployed may develop negative attitudes toward common things in life and may feel that all sense of purpose is lost. Frequent emotions could be – low self-esteem, inadequateness and feeling dejected and hopeless. * Health diseases: The unemployment overall tension can increase dramatically general health issues of individuals. * Tension at home: Quarrels and arguments at home front which may lead to tension and increased numbers of divorces etc. * Political issues: Loss of trust in administration and the government which may lead to political instability * Tension over taxes rise: Unemployment also brings up discontent and frustration amongst the taxpaying citizens. In order to meet the demands of the unemployment fund the government many a times may have to increase the taxes thus giving way to restlessness amongst the taxpaying citizens. * Insecurity amongst employees: The prevailing unemployment and the plight of the unemployed people and their families may create fear and insecurity even in the currently employed people. * Crime and violence: Increase in the rate of crime. * Suicide cases: Increase in the rate of suicide attempts and actual suicides as well. * Social outing: Unemployment may bring a decrease in social outings and interactions with other people, including friends. * Standard of living: In times of unemployment the competition for jobs and the negotiation power of the individual decreases and thus also the living standard of people with the salaries packages and income reduced.
Causes of Unemployment in Pakistan:
As our title of this post is causes and solutions of unemployment in Pakistan therefore in this part of post we will discuss about causes of unemployment in Pakistan as there are many reasons or causes of unemployment in Pakistan but most important causes of unemployment are discussed below in detail
Growth of Population:
One of the major problems regarding unemployment in Pakistan is uncontrolled growth of population. The population of Pakistan is increasing at very high rate this time. According to the statistical the population of Pakistan is increasing at the rate of 2.2%. There are plenty of factors responsible for over population such as early marriages, illiteracy, desires for sons, lack of awareness etc. As we all know that the education system of Pakistan is not upto the mark therefore increasing in population means bring more uneducated person into the field of labour. Government or any other company cannot provide jobs or work places to this huge amount of uneducated people at time.
Poor Education System:
The education system in Pakistan has been really poor since the creation of Pakistan. Unfortunately any government since independence didn’t take especial steps to make the education system good. Education system in Pakistan is unbalanced. It has been seen even talented students left study due to injustice of system. You will see many technical educational colleges and private technical institutions are being found which are only selling degrees because technical education which is being given in these institutions has no value, therefore people are wondering about for jobs due to lack of experience and skills.
Violence and Terror Activities:
As we all know very well that the Karachi is hub of trade and business in Pakistan but there are no rules and regulations in Karachi as everyone is violating law in the biggest city of Pakistan. Another cause of unemployment is terrorism. Terrorist activities in Pakistan are on peak at this time especially in Karachi, therefore situation in Karachi is really threatening and alarming and due to this the nationals and as well as foreigners are frightened to invest in Pakistan. So when investors will not invest so how can job or earning opportunities are being created?
Energy Crisis:
Could you believe country with plenty of natural resources and atomic power is lacking of energy crisis? There are many sources of producing of energy in Pakistan but due to lack of proper planning and efforts Pakistan is having problem of energy crisis. The government of Pakistan is unable to provide electricity to residential areas in Pakistan than how can Causes and Solutions of Unemployment in Pakistan energy or electricity can be provided to factories and industries. Therefore factories and industries that are required energy are transferring their business in other Asian countries like Bangladesh, India and as well as Sri Lanka. As of this result a huge number of labours are becoming the victims of unemployment.
High Age of Retirement:
The age of retirement in Pakistan is 60 years and it is really high age of retirement and the government of Pakistan is directly responsible for this factor. There are various educated people are in wait of jobs but high age of retirement is making young ones frustrated.
Afghans Refugees:
Afghans refugee to Pakistan is the additional problem of unemployment in Pakistan. When American army attacked on Afghanistan in 2001 about 13 years ago and due to this plenty of Afghans migrated to Pakistan for making them save till the betterment situation of their country but the situation in Afghanistan is still critical. The migrated people caused labour markets as they are ready to work for fewer wages.
Solution of Unemployment in Pakistan:
It will be tough ask for government to solve one of the major problems of Pakistan “Unemployment” due to huge population but still we have given some solutions to reduce the unemployment in Pakistan and we are hopeful by following these solutions the ratio of unemployment in Pakistan can be reduced or decreased.
* The first thing to do to reduce unemployment in Pakistan is the proper planning by the government of Pakistan. * The education system of Pakistan should be equal and well managed. * Well recognized training and technical institutions are need to be established where skills programs are offered. * The age of retirement should be at least 55 years. * Remove energy crisis so that investor comes to Pakistan thus job placement will automatically be created. * There should be peace across the country so foreigners will not hesitate to invest in Pakistan. * The agriculture sector should be developed. * Jobs should be given purely on merits. * Encourage multinational companies to business in Pakistan. * Family planning centers should be opened to control the flow of over population.
