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Pakistan unemployment rises to 7.1% as labor market pressures grow

Pakistan’s unemployed reach 8 million as labor force grows to 77.2 million

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Business Desk

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Pakistan unemployment rises to 7.1% as labor market pressures grow

Men distributing food during Karachi’s COVID-19 lockdown, May 2, 2020.

Reuters

Pakistan’s unemployment rate has risen to 7.1%, reflecting a 0.8-percentage-point increase over the past five years, according to the government’s latest Labor Force Survey for 2024–25 released on Tuesday by the Pakistan Bureau of Statistics.

The report estimates that 8 million people are currently unemployed — equivalent to 3.3% of the national population, now recorded at 241.4 million.

Pakistan’s labor force has expanded to 77.2 million, with the working-age population making up 43% of the total. The share of the inactive population, comprising working-age individuals not participating in the labor market, has risen to 53.8%.

The services sector remains the largest employer with 31.8 million workers, while agriculture accounts for 33.1% of the labor force (25.5 million workers) and industry for 25.7% (19.8 million workers).

The survey reports continued wage growth, with the average monthly wage increasing to Rs39,042, up from Rs24,028 in 2020–21. A gender wage gap persists: men earn an average of Rs39,302 per month, compared with Rs37,347 for women.

Economists say the data underscores mounting pressure on the labor market, warning that job creation is lagging behind population growth.

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