Labour imbalances

LAHORE: Pakistan faces labour imbalances with a shortage of skilled labour in medium and large industries and an abundance of low-skilled labour in small industries that do not have the capacity to absorb most of the low skilled workers.

The approach of our government in this regard is unsatisfactory. In fact, the Pakistani government tries to roll out a high number of low-skilled workers for a number of sectors. The vocational training institutes established are adding to the large pool of unemployed low skilled workforce already in the market.

Through skill and vocational training the state educates raw human resources to learn to produce things efficiently. With very low budget allocations for this purpose the state is unable to upgrade its skill training institutes to make higher skills available for medium and large industries.

On the other hand, the government allocates billions of rupees for formal education from class one to the tertiary level. Here again almost 60 percent of the graduates fail to find a suitable white collar job.

Our planners fail to realise that instead of spending billions on establishing degree colleges every year they should divert those funds towards establishing higher skill training institutes.

The state should invest in comprehensive training and development programmes to up-skill the low-skilled labour force. This can be achieved through partnerships between educational institutions, industry associations, and employers.

Training programmes should focus on providing the necessary skills and knowledge required by medium and large industries, aligning the labour force with their needs.

Efforts should be made to establish strong ties between educational institutions and industries that can help address labour imbalances. It can also enable industries to have direct input into the training and education provided, ensuring a better match between skills and job market demands.

Currently we are hiring foreign mid-skill level experts in the garmenting sector. The services of these experts must be utilised to pass on these skills to local youth. The state must offer financial assistance, access to technology and innovation, and business advisory services to small industries to scale up.

Garment making sector is a labour-intensive sector. Labour-intensive sectors are those that require a significant amount of manual labour compared to capital or technology inputs. In the garment industry, workers are involved in tasks such as cutting fabric, sewing garments, and adding finishing touches. These activities are predominantly performed by human workers rather than automated machines. The labour-intensive nature of the sector is often due to the complexity and variability of the work involved, as well as the need for skilled craftsmanship in producing high-quality garments.

We have seen that the All Pakistan Textile Mills Association has been boasting for the last four years about establishing 1,000 garmenting units across Pakistan to boost exports. But have not established even a few dozen factories.

One reason is shortage of skilled workforce and another is their lack of expertise in this field.

However, if the government diverted 10 percent of its education budget to establish quality garment skill training schools, we may see new garmenting factories as well as massive increase in capacities of already established garmenting units.

The state can offer training, mentorship, and financial support to individuals looking to start their own businesses. This can stimulate economic growth, diversify the labour market, and create opportunities for low-skilled workers to engage in more productive and higher-paying work.

It is important to note that these strategies should be implemented in conjunction with each other, considering the specific circumstances and the state of the economy. Regular evaluation and adjustment of these initiatives will also be necessary to ensure their effectiveness in addressing labour imbalances.