Pakistan’s skills gap puts youth jobs at risk: World Economic Forum

Youth unemployment challenges in Pakistan were highlighted in a report published by the World Economic Forum amid its Annual Meeting of Global Future Leaders in Dubai. 

Titled “How to Boost Youth Employment in Pakistan for the Age of AI,” the article focused on the skills gap, graduate unemployment, youth disengagement from education and employment, and structural barriers preventing young people from entering the workforce.

According to the report, 32.8% of Pakistani graduates aged 20 to 24 are unemployed, while nearly one-third of young people aged 15 to 29 are not in education, employment or training. The country’s annual output of computer science and IT graduates is also projected to nearly double from 28,091 in 2024 to around 62,000 by 2028, raising concerns about whether the job market can absorb the growing number of graduates.

The report further highlights that only 7% of Pakistan’s youth have access to formal technical and vocational training, compared with the regional average of 22%. 

The World Bank estimates that this skills gap costs the country $31.5 billion annually in lost productivity and unrealised export potential. As artificial intelligence reshapes entry-level jobs, the author calls for stronger career guidance, mentorship, industry networks and training opportunities to help young people navigate the changing labour market.

The report calls for stronger career guidance, mentorship, industry linkages and community-led training initiatives to bridge the gap between education and employment, arguing that Pakistan must build an employment system that equips young people to adapt to AI-driven changes in the labour market.