Pakistan's Unemployment Crisis: 8 Million Jobless as Rate Soars to 7.1% Amid Economic Struggles

Pakistan's unemployment figures have reached a critical point with over eight million people now jobless, according to the latest Labour Force Survey (LFS) 2024-2025 published by the Pakistan Bureau of Statistics (PBS).

The data reveals an alarming trend as the unemployment rate has increased by 0.8 percentage points, now standing at 7.1 percent. This development comes against the backdrop of Pakistan's total population of 240 million people, with the labor force volume expanding to 77.2 million.

Even more concerning are the broader employment statistics, which indicate that while only 43 percent of Pakistan's population is of working age, a staggering 53.8 percent remain either unemployed or economically inactive.

Financial data from the survey shows that the average monthly compensation in Pakistan was PKR 24,028 in 2020-2021. Currently, men earn an average monthly pay of PKR 39,302, while women earn PKR 37,347.

These unemployment figures emerge as Pakistan faces scrutiny over its economic reporting. In October, the World Bank questioned Pakistan's claims of poverty reduction, noting that only limited segments among the poor have seen marginal improvements, while rural communities continue to struggle under increasing economic pressures.

The World Bank clarified that its poverty measurement models provide general trends rather than precise statistical data. The organization acknowledged some modest economic recovery in sectors like logistics and construction during the last fiscal year, which slightly benefited workers in those fields.

However, the World Bank emphasized that Pakistan's current economic framework is inadequate for delivering sustainable improvements in living standards. The country's progress against poverty has stagnated since 2015, with conditions worsening following multiple crises including the COVID-19 pandemic, catastrophic floods in 2022, and record-breaking inflation.

Evidence of Pakistan's developmental challenges is further highlighted by the fact that nearly 40 percent of children remain stunted, indicating persistent deficiencies in human development and public service quality.

The World Bank indicated that forthcoming household surveys will finally provide updated poverty data, replacing years of estimates and revealing a more accurate picture of Pakistan's socioeconomic reality.