Youth joblessness surges as Pakistan’s unemployed population hits 5.9 million

Pakistan’s unemployed population has surged by about 31 percent, rising from 4.5 million in 2020-21 to an estimated 5.9 million in 2024-25, highlighting deepening woes in the labour market. The increase comes as the latest Pakistan Bureau of Statistics (PBS) survey shows joblessness growing across all age groups and genders.

According to early findings from the 2024-25 Labour Force Survey (LFS), unemployment is set to reach nearly 7 percent, up from 6.3 percent in 2020-21.

The prime age group of 15–24 years faces an estimated unemployment rate of 12.6 percent, while the broader 15–29 age group sees joblessness at 11.5 percent.

Youth joblessness remains a central concern. Gender and location data also reveal worrying trends: male unemployment has risen to 5.9 percent, while female unemployment has climbed more sharply to 9.7 percent.

In rural areas, unemployment increased from 5.8 percent to 6.3 percent, and in urban centres from 7.3 percent to 8.0 percent.

At the same time, labour force participation has risen. More Pakistanis aged 10 and above are either employed or actively seeking work, with the participation rate increasing from 44.9 percent to 47.7 percent.

The rise was seen in both men (from 67.9 percent to 69.8 percent) and women (from 21.4 percent to 24.4 percent), as well as in both rural and urban areas.

One of the most significant changes in the 2024-25 LFS is the adoption of the 19th International Labour Organization (ILO) standards, replacing the decades-old criteria used since 1982. Under the new classification, unpaid household work, subsistence farming, or family-help activities are no longer counted as employment.

As a result, many workers, especially rural women and subsistence farmers—may now be excluded from the employment tally, thereby inflating unemployment figures and altering the picture of labour participation.

Analysts warn that while the shift offers a clearer view of Pakistan’s “real” labour market, focusing on income-generating jobs, it also highlights structural challenges, shrinking formal employment, high youth joblessness, and a persistent gender gap.

As the government prepares to publish the full LFS 2024-25 report, attention is shifting to how policy, especially around skill development, job creation, and women’s employment, will respond to the findings.