A generation lost to skill deficiency

LAHORE: Pakistan has lost an entire generation due to a lack of relevant, demand-driven skills. Unskilled workers toil relentlessly with unrealistic career expectations, yet without basic competencies, their prospects for advancement remain limited.

This skills gap is a significant factor behind the high unemployment rate in the country. Those who do find jobs are often relegated to low-paying positions, which perpetuate the informal economy. Women’s participation in the labour force remains low, and even educated women face disproportionately high unemployment rates.

In developed economies, there are 39 apprentices per 1,000 workers due to deeply integrated apprenticeship systems. Governments and industries in these countries collaborate to ensure a steady supply of skilled workers. Apprenticeships bridge the gap between education and employment, reducing unemployment and boosting workforce productivity. For instance, Germany’s dual education system combines classroom learning with on-the-job training, serving as a benchmark for workforce development.

India, the most advanced economy in the subcontinent, has only five apprentices per 1,000 workers. Although initiatives like the National Apprenticeship Promotion Scheme (NAPS) have expanded apprenticeship programmes, gaps in implementation, awareness, and incentives for companies persist. The dominance of the informal sector also limits the impact of formal apprenticeship structures.

In contrast, Pakistan’s situation is dire, with just 0.3 apprentices per 1,000 workers. This abysmally low figure highlights the minimal integration of formal apprenticeship programmes into the labour market. Weak collaboration between the public and private sectors on skill development exacerbates the problem. Contributing factors include underperforming vocational training institutions, limited employer awareness, inadequate government incentives, and a reliance on informal skill transfer methods.

The lack of apprenticeships directly affects workforce productivity and economic competitiveness. Expanding apprenticeship programmes could significantly reduce unemployment and equip youth with market-relevant skills. This would require enhancing technical and vocational education, incentivising businesses to host apprentices, and launching public awareness campaigns.

Vietnam offers a successful model, adopting Germany’s dual training system, which combines classroom education with practical on-the-job training. This approach has been instrumental in meeting the demands of Vietnam’s rapidly growing manufacturing and technology sectors, driving the country’s sustained economic progress.

In Pakistan, planners must implement targeted programmes for jobless and underemployed youth. Early school leavers should be provided alternate education pathways, and stronger engagement with industries is essential. With investments in technical and vocational education (TVE) still at just 1.3 per cent of GDP, many institutions continue to train workers in outdated skills. The mismatch between skills and market demand is a key driver of youth unemployment.

Even among segments of society who do not have formal education, basic skills training has proven effective in fostering economic engagement. However, the private sector’s role in vocational training is disappointingly minimal. Industrialists complain that workers trained on the job are often poached by competitors. This issue arises because employers fail to adjust wages in line with workers’ enhanced skills, prompting employees to seek better opportunities elsewhere.

The result is a workforce where a significant number of unskilled labourers are condemned to poverty. Lacking opportunities for skill development, they are left to perform low-paying, indecent jobs for life. This generation, deprived of education and skills, represents a tragic loss for Pakistan’s economy and society.