Officials attribute the rise to a combination of climate-induced disasters, global price shocks, and strict conditions under the International Monetary Fund (IMF) stabilisation programme. Planning Minister Ahsan Iqbal said the IMF’s policies and climate events significantly restricted economic growth and job creation.
The survey shows unemployment increasing from 6.3% in 2021 to 7.1% in fiscal year 2024–25. Chief Statistician Dr Naeemuz Zafar noted that this is the highest figure since 2003–04, when unemployment stood at 7.7%.
Provincial data indicates that Khyber-Pakhtunkhwa is most affected with a 9.6% unemployment rate, followed by Punjab at 7.3%. Sindh recorded the lowest rate at 5.3%. Pakistan’s weak economic growth — averaging below 3% for years — continues to limit job creation as 3.5 million new workers enter the labour force annually.
Out of the 180 million working-age population, 118 million are unpaid household workers performing tasks such as childcare, livestock management, fetching water, and raising chickens. Raising poultry — once promoted by former prime minister Imran Khan as a potential income source — is practiced by over 7% of working-age individuals.
The survey reports 5.9 million unemployed people, with 77.5% being literate and nearly one million holding higher education degrees. Youth unemployment remains severe, particularly among the 15–29 age group.
Sector-wise, employment in agriculture fell to 33.1%, reflecting a shift toward services. Manufacturing’s share also dipped slightly to 14.4%, pressured by high energy costs, hefty taxes, and double-digit interest rates. Wholesale and retail trade now accounts for 16% of total employment.
Informal sector employment remains dominant, comprising more than 72% of non-agricultural jobs, especially in rural regions. Meanwhile, formal sector opportunities are concentrated in urban areas.
Monthly wages increased significantly since 2020–21: men’s average income rose from Rs24,643 to Rs39,302, while women’s increased from Rs20,117 to Rs37,347 — reducing the gender wage gap by almost half.
The report highlights women’s substantial participation in unpaid domestic and care work, with 45.4 million women handling household tasks, 32.1 million engaged in livestock, and 20 million providing caregiving services — roles vital to both household functioning and the informal economy.
