Social Problem of Unemployment in Pakistan
denote that a person is willing and able to work but can not find a job
Pakistan is poorly faced with the problem of unemployment; the existing unemployment rate in Pakistan is 15.20% (2010 est.)
Pakistan is faced with cyclical, Technical. Structural and seasonal unemployment
The most horrible part is that it is rising every year which in long term will demonstrate to be hazardous for the economy of Pakistan
Unemployment is always considered to be killing for an economy as it has negative impacts on the economy. Government will have to forgo its other projects and provide unemployment benefits to the unemployed so that they don’t get indulged in to non desirable activities such as crimes, robbery etc.
But the government of Pakistan does not take any essential steps to manage unemployment in fact the fiscal and monetary policy which it has chosen additionally leads to unemployment
The major issue is the electricity shortage it is so intense that many factories have reallocated overseas, there is non availability of electricity due to which production gets halted numerous times .If this issue is being taking to consideration the level on unemployment will decree hope fully, Pakistan is a developing country which once used to specialize n the production of textile but unluckily there is barely any good in which Pakistan have absolute advantage.
Interest rates are 12.50 in Pakistan which is extremely high due to this people are not investing into capital goods as it become difficult to make any profit after paying interest Thus no new business no new employment
Even though the government has introduced many supply side policies which have lead to a better skilled labor force. different type of training courses are being conducted for different industries but I don’t think it have helped in at all the cause for this is that although the labor quality have improved but when there is insufficient demand for labor how will unemployment be removed.
You must be thinking what’s the extraordinary thing about this article?
Well now ill be highlighting the ways by which unemployment can get better.
Monetary Policy Expansionary
Increasing Money supply in economy and reducing interest rate, it will encourage people to consume more. Additional firms will set up as there are chances for higher profit end result Increase in employment
Fiscal Policy Expansionary
As already government is spending on training, It
will not need to alter its spend .Taxes should be reduced ,as currently Pakistan have a enormous amount of both indirect taxes and direct taxes which puzzle me what the government is aiming for.
Tariff and quota should be placed on all imports, so that country become self sufficient. Leading to reduction in unemployment
Policy of devolution
Devaluing the currency means home country products will turn out to be cheaper for other countries thus increasing demand for home products and reducing unemployment
This will bring a multiplier effect on economy and it will move towards betterment
Hopefully by implying these policies countries employment can be improved
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