Classical or real wage unemployment: Government and bureaucrats ought to reconsider their policies regarding unfair distribution of education and must remove defective education strategies that have pushed the country to the corner of unemployment. In view of fiscal policy, Pakistan has fewer funds to invest in job providing projects and every annual budget shows deficit.
Fiscal and monetary policies are also responsible for unemployment. The unemployment in Pakistan has created various social, political and economic problems that can be rectified through good governance, vigorous economic growth, industrialisation, and pacification in the country.
If there is the development of labour saving technology in some industries, then there will be a fall in demand for labour. It is the government responsibility to eradicate poverty through the maximization of employment slots and establishment of peace in the country.
It is the bad luck of Pakistan that it has not compiled the strong and vigorous agriculture policies for the poor people. However, unfortunately, Pakistan is far behind as far as hotelling and tourism are concerned, owing to the pathetic security situation of the country.
In recessions, unemployment tends to rise rapidly as firms lay off workers. Hence, the unemployed graduates are eventually forced to settle for ordinary jobs as they have a family to feed.
But the inane government could not transform the goodness of environment into realistic way. Through the monetary policy if the government increases the rate of interest, it in turn discourages the investors from getting loans.
Moreover, population explosion is another cause for the inclination of unemployment. However other Keynesian economists emphasise the importance of aggregate demand in determining unemployment. The graph of unemployment would be dropped down by strengthen of economy and government splendid strategies.
In the s mass Unemployment continued until WW2. Due to lack of jobs, some of the many unemployed individuals become vulnerable and opt to earn via various crimes. Unemployment in this sector is from two sides.
Due to less income from taxes, government cannot start developmental projects. Voluntary unemployment This occurs when people choose to remain unemployed rather than take jobs available.
In Pakistan the education system is defective and there is no educational planning. There is a huge difference between the demand and supply for labour. This refers to the difficulty in moving regions to get a job, e.
In addition, lack of technical and vocational institutions also adds to the growing misery. Keynes said in the long run wages may adjust, but in the long run we are all dead!
Poor governance have marred the performance of our economic sector by every side and government has taken only cosmetic measures to redress the problem. The tax system is not satisfactory; ratio of direct taxes is more than indirect taxes. It is the reward of bad governance that the government has done great embezzlement in Rental Power Producers RPP schemes but does not generate the extra one mega watt energy.
The local people become unemployed due to these above mentioned reasons.
The unemployment has created sundry social, political and economic problems that can be rectified through good governance, vigorous economic growth, industrialization and pacification in the country.
Wages could be pushed above the equilibrium level by minimum wages or trades unions. They argue that demand deficient unemployment tends to be only short term. Since the dawn of human history, individual needs have been prioritized by every human being.
Furthermore, de-industrialization in Pakistan is the result of, terrorism, energy crisis and roll back of Foreign Direct Investments FDI.
That person is unemployed, who has ability to do work and is willing to do work but is unable to get a job opportunity. Thirdly, Industry is also a heaven for educated as well as semi-educated labour force in the country.
The rural population is more as there is less awareness when it comes to contraceptives, education is not prioritized and many also keep having kids to have more sons. Agriculture sector is facing severe challenges of water shortage, climatic changes and technological backwardness in recent years.The people of Pakistan are considered highly talented and hardworking in the world and there is no value of talent in Pakistan therefore it is the reason many of engineers, doctors, Scientifics.
We would look at the current scenario in comparison to the past; reasons for unemployment and the potential paths to reduce it. Current Unemployment rate in Pakistan Pakistan has had its fare shares of ups and downs, and during the bad times a lot of people suffer.
Oct 21, · A Few Reasons of Growing Unemployment in Pakistan. Unemployment is one of the biggest problems of Pakistan. That person is unemployed, who has ability to do work and is willing to do work but is unable to get a job opportunity.
Essay On Unemployment In Pakistan Causes, Solution, The problem of unemployment on a vast scale, is a world phenomenon. It is not confined to Pakistan or developing countries along but certainly it is more serious and pronounced in developing and under developing countries of Asia, Africa and Latin America.
Causes of Unemployment in Pakistan: Unemployment is one of the major problems of Pakistan. The level of unemployment is moving up. Here are some of the causes that increase the unemployment rate in Pakistan.
• The higher growth rate of population is the major causes of unemployment. The population has exceeded the optimum level.
5/5(2). Therefore, Pakistan is not attracting new investment causing unemployment in the country. Fifthly, United States of America spent billion in on research and development whereas Pakistan’s attention towards this sector is the least.Download