SIR JAVED HUSSAIN
SUBMITTED BY:
SYED AFFAN (18618)
RAJA AMIR KHAN CHANDIO (18825)
MUHAMMAD SAHAM (18248)
ZAHEER UD DIN BABUR (18880)
USMAN ISMAIL (18741)
RAHEEL ALI ABBASI (18262)
SUBMITTED TO:
SIR JAVED HUSSAIN
SUBMITTED BY:
SYED AFFAN (18618)
RAJA AMIR KHAN CHANDIO (18825)
MUHAMMAD SAHAM (18248)
ZAHEER UD DIN BABUR (18880)
USMAN ISMAIL (18741)
RAHEEL ALI ABBASI (18262)
CONTENTS
CONTENTS
1. DEFINING THE PROBLEM 1
2. LITERATURE REVIEW 5
3. ANALYSIS OF DATA 11
4. CONCLUSIONS 19
5. RECOMMENDATIONS 21
6. REFERENCES 23
7. HYPOTHESIS 25
8. QUESTIONIER SAMPLE PAPER 29
9. QUESTIONIER ANALYSIS 32
DEFINING THE PROBLEM OF UNEMPLOYMENT
DEFINING THE PROBLEM OF UNEMPLOYMENT
Unemployment (or joblessness), as defined by the International Labor Organization, occurs when people are without jobs and they have actively sought work within the past four weeks.[1] The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force. In a 2011 news story, BusinessWeek reported, "More than 200 million people globally are out of work, a record high, as almost two-thirds of advanced economies and half of developing countries are experiencing a slowdown in employment growth," the group said.
Major obstacles in the path of Economic Development and Growth of the Underdeveloped countries, better to say developing countries are: Poverty, Inflation, illiteracy, Unemployment, Capital deficiency, Lack of saving and investment, Low GDP growth rate, Unequal income distribution, Political and economic Instability, and poor health, transportation and sanitation facilities. These are only the few obstacles out of long list of problematic situations. Out of these we can say the most important or one of the bases of many other problems is the problem of Unemployment or Underemployment. Lacking a job often means lacking social contact with fellow employees, a purpose for many hours of the day, lack of self-esteem, mental stress and illness, and of course, the inability to pay bills and to purchase both necessities and luxuries. These effects are especially serious for those with family obligations, debts, and/or medical costs, where the availability of health insurance is often linked to holding a job. Increasing unemployment raises the crime rate, the suicide rate, and encourages bad health. During the Great Depression, unemployment rates exceeded 20% in many countries. Finally, high unemployment implies low real Gross Domestic Product-human resources are not being used as completely as possible and are thus wasting opportunities to produce goods and services. Mostly unemployment thus represents a profound form of inefficiency.
In addition to these three comprehensive theories of unemployment, there are a few categorizations of unemployment that are used to more precisely model the effects of unemployment within the economic system. The main types of unemployment include structural unemployment which focuses on structural problems in the economy and inefficiencies inherent in labor markets including a mismatch between the supply and demand of laborers with necessary skill sets. Structural arguments emphasize causes and solutions related to disruptive technologies and globalization. Discussions of frictional unemployment focus on voluntary decisions to work based on each individual’s valuation of their own work and how that compares to current wage rates plus the time and effort required to find a job. Causes and solutions for frictional unemployment often address barriers to entry and wage rates. Behavioral economists highlight individual biases in decision making and often involve problems and solutions concerning sticky wages and efficiency wages.
Unemployment in Pakistan
Unemployment in Pakistan
Pakistan is poorly faced with the problem of unemployment; the existing unemployment rate in Pakistan is 15.20% (2010 estimated.)
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 led 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.
The unemployment rate (10 years and over) in Pakistan was last reported at 5.7 percent in the second quarter of 2011. From 1990 until 2009, Pakistan 's Unemployment Rate averaged 5.88 percent reaching an historical high of 8.27 percent in December of 2002 and a record low of 3.13 percent in December of 1990. The labor force is defined as the number of people employed plus the number unemployed but seeking work. The nonlabour force includes those who are not looking for work, those who are institutionalized and those serving in the military.
LITERATURE REVIEW LITERATURE REVIEW
ARTICLE # 1
Katherine Hagen, ILO 's Deputy Director-General,(1996) Said, Byte year 2000, one-half of humanity will be living and working incites, with developing countries accounting for the major share of the world 's new urban population. These people will need jobs if the new cities are to develop as centers of economic opportunity and civilization rather than zones of inequality and misery. Only the generation of productive employment can break the vicious circle of urban poverty that is taking root in cities worldwide. In spite of the problems caused by rapid urbanization, cities are rightly regarded as centers of productivity and engines of economic growth. Urban centers make a disproportionate contribution to Gross Domestic Product. This is also true for many developing countries. For example, although Kenya is 23%urban, Nigeria 35% and India 27%, the urban areas in all three countries account for 70 % of GDP. In ILO 's view cities are source that needs to be developed continuously and with a view to increasing human well-being and social justice.
Unemployment Is not confined to developing-country cities. Cities in developed countries have been hit hard by de-industrialization, since most manufacturing was located in cities. Over the last two decades the average drop in manufacturing employment in G7 countries was 15 %. Among the larger Countries, the UK 's share of manufacturing employment declined by 43%, France 's by 23% and Germany 's by 14%. Most Countries are struggling with double-digit unemployment. The US has low unemployment, but average real wages have stagnation the last 20 years, and high pockets of unemployment do exist in some large U.S. cities.
ARTICLE # 2
International Labor Organization (ILO), (1996) says, one-third of the world 's inner-city population, approximately 400 million people, is living in poverty, with lack of productive employments one of the most direct causes. By the year 2000, the ranks of the urban poor are expected to have swelled to one billion people. In absolute terms, Asia represents the largest concentrations of urban poverty in the world. In the developing world, African cities have the highest percentage of poverty, with41 % of the urban population living below the poverty line. The report, says that in both developed and developing countries, the rise in urban Joblessness causes urbanization of poverty. The ILO estimates that there will be 1.2 billion new participants to the world labor market by the year 2025. Most of the new jobs will have to be created in cities. The share of non-agricultural employment grew by 93 per cent in the last four decades, and now accounts for 40 per cent of all employment in developing countries.
ARTICLE # 3
Syed M. Aslam (1999) writes that after fifty years, in Pakistan the dream of Quaid-e-Azam still remains to be materialized as the successive governments failed to exploit the natural and human resources wisely. The economy is in such a worsening state which the country never experienced before. The biggest portion of the budget today goes towards the payments of foreign debts. Little is left for education, health and development. This has taken a serious effect on the employment opportunities in the country where finding a job at all levels is becoming harder by everyday due to frequent lay-offs in the public and private sector. There are many seekers but few jobs. In a society where ‘who you know’ has replaced ‘what you know’ as the major criteria for jobs, chances of employment are miserable due to massive downsizing in the public sector. Tens of thousands of graduates leaving the universities every year are finding it harder to find suitable employment. Unemployment weakens the economic and social stability of any society. Societies which fail to provide gainful and secure employment to their people invite political instability, social unrest and economic insecurity. Unemployment of international aid for the most helpless youth in order to bring them back into the fold of a civil society. It is recognized within the UN as well as other international organizations and governments that only through decent employment opportunities can young people get the chance to work them out of poverty.
ARTICLE # 4
Sarid (2006) reports that the number of young unemployed increased from 74 million to 85 million over the past ten years, there were more than 300 million youth who were living below the US $2 per day poverty line, notes a report by ILO. The highest unemployment rate was observed In the Middle East and North Africa: 25.7 %. In Sub-Saharan Africa 18.1 %; South East Asia and the Pacific 15.8 per cent. The European Union prides itself with13.1 percent and East Asia with only 7.8% (officially). It is important to note that in the developing regions, such as South Asia, Young women face Disproportionate Challenges in the labor market. This is mainly due to cultural traditions, lack of work opportunities, and a tendency of labor markets to drop young women more rapidly than men when fewer job opportunities are available. There is also a harsh increase in the number of young people who are neither in employment nor in education, in Central and Eastern Europe 34 percent of youth falls in this category. In sub-Saharan Africa the rate was 27 percent, while in Central and South America it was 21 percent. In the developed countries, on the other hand, that number was only 13 percent.
ARTICLE # 5
International labor organization, ILO (2006) finds that unemployment has reached to new heights despite of the healthy economic growth. Unemployment is increasing at high rate especially youth are mostly effected by this. ILO says that the rapid increase in the GDP of the most of the economies could nocturne that economic growth into job creation and increasing of the wages. No doubt that world’s GDP growth is increased to 4.3%but even this could not decrease the unemployment rate. This shows that even economic growth is not sufficiently addressing global employment needs and the world is facing global job crises and deficit in well-mannered working which could not be cure by itself. There were 191.8 million jobless people at the end of 2005 an increase of 34 people million since 1995
The main problem is that more than half of the world’s unemployed is youth while youth makes Up 25% of the working age population. The report says that only in service sector the employment opportunities increased with one exception i.e. Middle East and Africa. It says that if service sector continued to grow on like this it will soon overtake agriculture sector in providing employment opportunities.
Mr.Somavia, ILO (2006) said, in many countries, agricultural workers are leaving a life of rural poverty in the hope of finding something better in the city but end up little or no better off in informal laboring jobs or petty trading. Economic shocks as well as natural disasters recently also hit those areas who are already poor. This report suggests concept that poverty can only be reduced by the rout of more and better job in the economy. It is quite clear from these articles that unemployment always remained a serious problem in the way of development of any country and it also is affecting the overall world development programs. The cost of this for a nation is not only the lost GDP(output),and welfare expenses paid for the survival of unemployed but also the increase in crime and antisocial behavior which in turn badly effect industrial and trade activities and create further more unemployment and poverty in the society. Serious political and governmental attention is needed to reduce its impact on the society.
VARIABLES USED:-
Major objectives of our study related to this term paper are to discuss:
•Major causes of unemployment in Developing countries
•Major effects of unemployment in Developing countries
•Changes in employment and unemployment pattern around the globe and with special importance to Asian countries i.e. Pakistan, India and Bangladesh.
•Role of Pakistan Government regarding unemployment Term paper will also give suggestions to reduce and aid unemployment in developing countries like India, Pakistan.
Methodology and Sources of Data:-
Most of the data is collected from internet. Statistics and figures are gathered from reliable sites of ILO(International labor Organization), WB (World Bank), ADB (Asian Development Bank) and SBP (State Bank of Pakistan).Both absolute values and percentages are used to discuss changing pattern of employment and unemployment. All the statistics use in the paper is of 1995-onward.
ANALYSIS TECHNIQUE:-
First introductory part of this term paper discusses about global scenario of unemployment in detail with especial reference to Situations in South Asia. Objectives of study are also given in this part of paper. Then comes the review of literature which include summarized articles of unemployment about situations in world and also related to Asian developing countries and Pakistan. Then in the third part, named as Analysis of Data, all the objectives of causes, effects and role of governments regarding unemployment are fulfilled.
ANALYSIS OF DATA
ANALYSIS OF DATA
Global causes of unemployment:-
Unemployment is not the result of any one cause. It makes its appearance in a great variety of circumstances, some in personal factors, some in economic changes, and some in legislative and regulatory conditions. Throughout the year some workers may appear in the labor market and then withdraw. Students work during the summer and return to school in September. Building and construction activities, logging and lumbering, slaughtering and meat packing are very seasonal and give rise to a considerable amount of temporary unemployment. Similarly, industrial and technological changes may force workers to readjust and relocate. Jobs, wages, and working conditions always point the way. Unemployment can be considered as phenomenon driven by multiple causes. Unemployment might be attributed to, for example, deficient aggregate demand, high population growth rate, discriminations, illiteracy, technical progress, market imperfections, utility maximizing decisions of workers, individual search behavior, the rise and fall of industries, trade union behavior, seasonal nature of jobs etc., or combinations of these factors. This makes clear that unemployment is an instance in which more than one cause is involved in the production of the phenomenon and that total unemployment is an intermixture of effects of these singular causes. Another important cause of unemployment is that it is good for big business. The higher the rate of unemployment the more people there are looking for work, the more people there are looking for work then the more likely they are to put up with poor working conditions and poor pay, they more willing they are to put up with poor conditions and poor pay the easier it is for big businesses to grow as they do not need to worry as much about worker strikes and unions. This exploitation of the workers, allows businesses to sack the money they should really be paying out and use it to further their own goals. Less opportunities for women to take part in labor force in Asian countries is also contributing to increase the overall ratio of unemployment. So we can say that each type of unemployment can have different and more than one causes but the need is to control these situations.
Costs and effects of unemployment:-
Unemployment is potentially very damaging. Its knock-on effects are far reaching, destroying the lives of countless individuals, parents and children and severely affecting a country’s economy. For the individual, unemployment can be psychologically damaging, eroding a person’s self-esteem. Unemployment in the family context will cause added stress. In many countries the common scenario is that unemployment takes families in to the poverty trap. In anxiety parents send their children out in search for work. In most instances this leads to cheap labor, begging and trading on the streets and even prostitution and criminal activity. Without education these children are without hope of finding a decent job in the future. This is how child labor birth takes place. This cycle of deprivation continues through the generations.
Unemployment damages the economic and social stability of any society. Societies which fail to provide gainful and secure employment to their people invite political instability, social unrest and economic insecurity. The link between unemployment and crime has also been well established.
A rise in unemployment will seriously damage a country’s economy. Unemployment represents a terrible waste of national resources. The goods and services which the unemployed might have produced are lost forever. With rise in unemployment GDP gap between potential and actual GDP increases. What is more, for the State that the cost of unemployment does not only consist of the loss of potential income-derived from taxation, it also includes the expenditure involved in social security benefits and various forms of subsidization to assist in maintaining at least a minimum level of human dignity for those affected. Employment is also directly related to all industrial and trade activities. These activities slow down when there is a high level of unemployment but increases when it is low.
Situation of unemployment in Asian countries:-
South Asia 's labor market is characterized by Constant unemployment and underemployment, especially among the youth and the educated; working poor who do not get sufficient wages to get out of poverty; working children; and women who face discrimination across the labor market, reflecting prevailing social attitudes.
World Trade Organization (WTO) has failed to generate employment in South Asian region. South Asia 's unemployment levels have raised from 2.9 per cent in 1995 to 3.4 per cent in 2001 (officially) and the annual employment growth rate has come down during the second half of the 1990s as compared to the first half.
Data from the Asian Development Bank (ADB) show that unemployment has increased in Pakistan, Bangladesh and the Maldives, while it has decreased only in Sri Lanka during this period. Though the ADB data do not report India 's unemployment rates, the Economic Survey of India shows that the unemployment rate increased from 5.99 per cent in 1993-4 to 7.32 per cent in 1999-2000.
Situation in Pakistan:-
Many changes have been made to define the meaning of labor force and employment in Pakistan— The Population Census of 1951 defined the labor force as all persons of 12 years and above who are self-supporting, partially self-supporting or seeking works. In 1961, its definition was changed to include all those of ten years and above who were working for profit or wages or helping their family members. Not only the change lowered the age but it also included the unpaid family members in the employed. Today, Labor Surveys define employment as “all persons of ten years of age and above who worked at least one hour during the reference period [the year] and were either ‘paid employees’ or ‘self-employed. “Based on this definition, the total number of employed labor force in 1999 is estimated at 36.2million. For instance, based on a population of 134.5 million today and a participation rate of 28.7 per cent, the total labor force in Pakistan comes to 38.6 million of which 36.2 million were employed. This also shows that only 2.4 million persons were unemployed in the country which reflected an affordable unemployment rate of 6.1 per cent. In fact, unemployment is a much more serious problem than the official statistics show. If the unemployment rate of 6.1 per cent is correct, the employment rate is an ideal 93.9 per cent. Those who know Pakistan, and there are many, find this highly unpalatable. Unemployment in Pakistan today is widespread at all levels. It does not spare the highly qualified professionals any more be they doctors, engineers and MBAs. It hurts the illiterates, non-skilled, skilled, and educated and professionals alike. Most of the jobs created and advertised are aimed at the highly qualified professionals whose share in the total employment is just 3.6 per cent. There are little or no vacancies advertised for the two biggest occupational groups— skilled agricultural and fishery workers whose share is 36.8 per cent and the elementary or unskilled workers whose share is 22.9 percent.
Role of Pakistan Government:-
The government is trying to reduce the unemployment rate in country. ‘Rozgar’ schemes were launched by the Prime Minister Benazir Bhutto in 1989 and in 1994 and her predecessor Nawaz Sharif launched Yellow Cab scheme in 1992. However these schemes could not contribute a lot due to many reasons. One is the complicated procedure especially intensive verification, which created hurdles for a common man. The Yellow Cab scheme was drafted by the elite class, which had their sources in the banks. After taking the cars as taxi in their name, they converted them into private cars and most of those deserved to get benefit from this scheme could not do it due to lengthy procedures, guarantees and collateral formalities.
Under Prime Minister 's Self Employment Scheme in 1999, different Banks and Small Business Finance Corporations extended loans to unemployed youths and skilled professionals with diploma/degree and business experience. Loans ranging from Rs.10,000 to be Rs.500,000 for small business and fromRs.500,000 to Rs.5,000,000 for small industries etc. Small Business Finance Corporation played role in reducing unemployment. Up to March 1999, the Small Business Finance Corporation has sanctioned Rs.2,208.4 million, against amounting to Rs.1,551.95 million have been disbursed to 9,383persons.
The SBFC has generated employment for 28,149 persons under the Prime Minister 's Self-Employment Scheme up to March 31,1999. A Small and Medium Enterprises Development (SMEDA) has been setup for growth and development of self-employment schemes in Pakistan. During the year 1998 about 104,000 persons have been sent abroad for employment under Govt. overseas employment schemes.
President Musharraf launched self-employment scheme in collaboration with National Bank of Pakistan (NBP)offers self-employment opportunities especially to youngsters for setting up small scale enterprises such as small fixed phone PCO, mobile PCO, transport rickshaw (Qing qi), Qing qi for goods delivery and small Utility Stores. It is for the poorest of the poor and provides employment opportunities to the unemployed youth. It aims to target about 2.5 million unemployed individuals inthree to five years through simplified financing by the NBP.
Unfortunately President ‘Rozgar’ scheme has the same complicated procedure. Like the past such employment schemes, this scheme also has the condition of two guarantee witnesses who will testify certificates and viability of the loan seeker as mandatory, which is a difficult task for a poor common individual (male or female). The other option is to provide evidence of applicant’s property. If someone has ownership of property then he/she doesn’t need such a small amount in shapeof loan to start any little business. The scheme also has condition of two personal references as compulsory. One of the major concerns is that a secondary school certificate is prerequisite for a candidate that means middle grade or illiterate youth or unemployed people cannot benefit from this scheme at all. CONCLUSION CONCLUSION
The growing human poverty challenges faced by Pakistan need to be addressed through integrated policies and approaches at individual and collective levels. Efforts on the part of national governments, supported by the international community, can be complemented for this. Civil society can play its role through capacity building to get rid of the root-causes of unemployment and poverty. Though complicated phenomena, poverty can be addressed through adoption of multidimensional approaches. First of all, real data should be collected to project real state of poverty instead of false figures. This data can help devise plans and strategies to address the issues around growing poverty and to reduce this to maximum possible levels as defined in the
Millennium Development Goals (MDGs).
Unemployment and poverty, both cannot be addressed though such short-sighted and politically motivated apparent measures. If we really want to do this then, we have to reform our financial and administrative structures and have to change the mindset tuning this in terms of the people’s security that includes their food security, job security, personal security and security of movement. If we continue with huge spending on debt servicing and defense, we can hardly allocate sufficient budgetary provisions to address the giants of growing poverty and unemployment. We need to recognize potential of our people and look for options and possibilities that can divert our huge budgets from debt serving and defense to human development and poverty eradication, and job creations. To meet the challenge of unemployment, we need to concentrate on resource mobilization for the social sector development to create more opportunities for education for all children as mandated in MDG-2 which demands to ensure children everywhere to be able to complete a full course of primary education. Moreover we need to invest in higher scientific and technical education. In this way, Pakistan as a developing state may produce sufficient technical skills to accelerate its economic growth and to position itself to meet challenges of globalization in the twenty-first century. By creating more jobs we can reduce burden on single bread earners in families. But the job creation should be on easy and real terms and not just politically motivated whims and assumptions. If the authorities want that the recently launched President’s ‘Rozgar’ scheme should benefit the targeted unemployed, then they have to think in real terms. We need to express political will at the highest level to make this scheme successful.
RECOMMENDATION
RECOMMENDATION
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.
Protestantism measures
Tariff and quota should be placed on all imports, so that country becomes self-sufficient. Leading to reduction in unemployment
Boosting exports
Government should try to boost exports through broadening the tax base and lowering tariffs.
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
Economic Revival package Economic Revival package should announce by the government for the revival of industries sector, to stimulate production and investment.
Development of agriculture sector
Government should announce multiple packages for the development of agriculture
Technical training facilities Technical training facilities should be provided. In this way unemployed people will get a chance to enhance their skills and become able to earn more reason able income.
REFERENCES Syed M. Aslam, UNEMPLOYMENT — A NIGHTMARE
Mohammad Shezad, Human Development in South Asia, The challenge of unemployment
GLOBAL EMPLOYMENT TRENDS BRIEF, January 2006, ILO
Samina Khalil and Rao Noman Saleem,
Applied Economics Research Centre Unemployment Situation in Pakistan
2003 Human Development Report, Globalization Fuels Unemployment in South Asia
President’s employment scheme, Pakistan observer Kerstin Marx, Asia: Crisis causes massive unemployment
Dr Johann Van Rooyen, The cost and causes of unemployment, ECONOMIST.
Sunchild, Why is there unemployment spreading the world
List of countries unemployment rate.
Aleksander Berentsen, Guido Menzio, and Randall Wright,.(2009) “Inflation and Unemployment in the Long Run”.
Andrea Bassanini and Romains Duval. (2006). “The Determinants of Unemployment across OECD Countries: reassessing the role of policies and institutions.” OECD Economic Studies No. 42.
Blackley, P.R. (1991) “The Measurement and Determination of Okun’s Law. Evidence from State Economics”
Websites
www.ilo.org www.pakistaneconomist.com www.sarid.net www.pakistanobserver.com www.google.com www.wikipedia.com www.indexmundi.com/pakistan/unemployment_rate.html www.tradingeconomics.com/pakistan/unemployment-rate www.visualeconomics.creditloan.com/unemployment-rates-around-the-world www.tradingeconomics.com/unemployment-rates-list-by-country www.data.worldbank.org/indicator/SL.UEM.TOTL.ZS www.youtube.com/watch?v=7QfthPdf10w www.youtube.com/watch?v=OcanTQEjlVw
HYPOTHESIS
HYPOTHESIS
In societies like Pakistan where most people earn their living only by working for others being unable to find a job is a serious problem. In Pakistan population pressure lower the economic growth rate and resulting in poor or slow growth of country economy. According to the survey report the rate of unemployment in 1998 was 5.50 percent which increased to 7.82 percent by the year 2003. Thus the rate of unemployment in rural areas was 5 percent which increased to 69 4 percent, while the rate of unemployment in urban area was than 9 percent which increased to 9.9 percent by 2003. In Pakistan 50 percent of our population is composed of women who are treated as out of the work force.
Unemployment in Pakistan is increasing due to various causes but if these things can be controlled than unemployment rate can automatically decline.
Rapid Population Growth: Rapid growth in the population is the main factor which is worsening the situation, but Pakistan is one of the most populated countries of the world with annual growth rate being nearly 3 percent. It means that about 1 million workers are added yearly to the existing labour force which calls for creating job opportunities. Increase in population contributed much in rising unemployment rate in Pakistan and if the population growth keep on increasing with the same ratio than it will create more problems. More people will need more farmers to grow food. More truckers and train operators to transport it. More stockers to stock it, more checkers to sell it. More people means there will be a greater need for construction workers to build homes and businesses. It means more demand for education and teachers Uncertainty and unrest in the country:
Uncertainty and unrest in Pakistan and the worsening law and order situation has played an important role in transferring the business to other countries, no foreign investors feel secure in investing in such a country in which their businesses are not secure. In Pakistan due to weak political system and unstable government structure. No foreign companies want to invest in unrest environment which become the cause of unemployment because of lack of jobs opportunities in the country. Karachi is the biggest industrial base of Pakistan, but investors are reluctant to invest there because of unrest and violence. If we really want to reduce unemployment rate in Pakistan so first steps should be taken for controlling the worst law and order situation in the country.
Education system of Pakistan Deplorably low rate of literacy and deterioration in standard of education in the educational institutions contributed much in increasing unemployment rate. Our educational system is also responsible for increasing unemployment rate among the educated youth. Education system is divided into different categories. Students studying in government institutions will be less aware about the new technologies, ideas for surviving in this competitive world and unemployment rate is higher among such students. Besides education the attitude of our youth towards the choice of a career is unrealistic and unproductive. Rapid mechanization and computer technology also causing unemployment.
Economic Depression: Another reason why unemployment occurs is when there is a great economic depression, or now becomes famous with the term “global recession”. When economy fall down, many are becoming affected, most especially the employees. During this kind of situation, employer and other business owners will be force to reduce their workers in order to cope up with the right wages of the workers. There are so many causes why people become unemployed. However, the answer to this problem is still within your decision. Bear in mind that being unemployed can be voluntary or involuntary, thus, you can still make the best choice for your life, and that is to be employed or to remain unemployed and jobless at all. Whatever the cause of being unemployed if a person will still pursues to look for a job and become employed then there is no reason for you to stay unemployed.
UNEMPLOYEMENT
QUESTIONNAIRE SAMPLE PAPER
UNEMPLOYEMENT
QUESTIONNAIRE SAMPLE PAPER
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PROGRAMME:________________________________________
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PROGRAMME:________________________________________
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UNEMPLOYMENt
Q1. What is the main reason of unemployment in Pakistan?
(a) Corruption (b) energy crisis (c) population growth (d) educational system of Pakistan
Q2. As a result of unemployment, people
(a) Commits suicide (b) become mental (c) commit crimes (d) keep searching for jobs
Q3. If a person in Pakistan commits suicide what will happen?
(a) There will be no reaction (b) people will start protesting against government
(c) People will become violent (d) people will just say “so sad”
Q4. What is your qualification? (a) Illiterate (b) Below metric (c) Metric or intermediate (d) graduate
Q5. What is your current status? (a)I am employed (b) I am unemployed and searching for job
(c)I am unemployed and stopped searching for job (d) I was unemployed and now I have started my business
Q6. Is Govt. providing employment opportunities?
(a) Yes but on the basis of reference system (b) Yes but on the basis of ethnicity
(c)No government in not providing any opportunity to anyone (d) government is already firing those who are employed
Q7. If you will not get a job what will be your reaction
(a) Own business (b) job (c) suicide (d) crimes
Q8. How much income is your desire per month in Rs? (a) 5000 to 10000 (b) 10000 to 15000 (c) 15000 to 20000 (d) 20000 to above
Q9. Unemployment affects the Socio-economic status of the family? (a)Agree (b) Disagree (c) Strongly Agree (d) Strongly Disagree
Q10. Do you think that Unemployment affects family relationship negatively?
(a)Yes it affects a little (b) no it doesn’t affect (c) relationships break because of unemployment
(d) Relationship become strong
Q11. Unemployment peoples are usually uneducated?
(a) Not at all (b) Majority of unemployed people are educated
(c) Yes you are right (d) uneducated people earn more money than educated people
Q12. Unemployment leads to corruption, dishonesty, crimes and sins? (a) Yes true (b) No it’s not true (c) Basically unemployment is not a reason (d) Unemployment is just a minor reason
Q13. Unemployment increases suicide rates?
(a) no (b) not at all (c) yes but in a very small scale (d) yes and in a very large scale
Q14. Our educational system is also responsible for the high unemployment rate among the educated youth.
(a)Agree (b) Disagree (c) Strongly Agree (d) Strongly Disagree
Q15. Majority people are still unemployed because they only want a white collar job.
(a)Agree (b) Disagree (c) Strongly Agree (d) Strongly Disagree
Q16. Rapid mechanization and computer technology are also causing unemployment.
(a)Agree (b) Disagree (c) Strongly Agree (d) Strongly Disagree
Q17. Lack of enough industries in Pakistan is cause of unemployment.
(a)Agree (b) Disagree (c) Strongly Agree (d) Strongly Disagree
Q18. The government is not involving in capital expenditure which creates job.
(a)Agree (b) Disagree (c) Strongly Agree (d) Strongly Disagree
Q19. System of reference so much indulged in our society to get the job.
(a)Agree (b) Disagree (c) Strongly Agree (d) Strongly Disagree
Q20. Young people don’t want to do work on a very low wage so they remain unemployed.
(a)Agree (b) Disagree (c) Strongly Agree (d) Strongly Disagree
Q21. The main reason of unemployment is government is not keen in providing jobs to the fresh graduates.
(a)Agree (b) Disagree (c) Strongly Agree (d) Strongly Disagree
Q22. Political instability in Pakistan is reason of unemployment.
(a)Agree (b) Disagree (c) Strongly Agree (d) Strongly Disagree
Q23. Our system of education cause of unemployment because our students are not getting practically work they are getting education that is theoretically so when they come in world market they get fail.
(a)Agree (b) Disagree (c) Strongly Agree (d) Strongly Disagree
Q24. What do you think when the problem of unemployment will solve
(a)It will solve in next 5 years (b) It will solve in 5-15 years
(c)It will take a lot of time (d) it will not solve till the doomsday
Q25. How the problem of unemployment can be solved. Give your suggestions below.
THANK YOU
THANK YOU
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
UNEMPLOYEMENT
QUESTIONNAIRE ANALYSIS
UNEMPLOYEMENT
QUESTIONNAIRE ANALYSIS
References: Aleksander Berentsen, Guido Menzio, and Randall Wright,.(2009) “Inflation and Unemployment in the Long Run”. Andrea Bassanini and Romains Duval. (2006). “The Determinants of Unemployment across OECD Countries: reassessing the role of policies and institutions.” OECD Economic Studies No. 42. Blackley, P.R. (1991) “The Measurement and Determination of Okun’s Law. Evidence from State Economics” Websites
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