Bridging skill gaps: tackling unemployment in Pakistan

LAHORE: Labour market challenges persist across South Asia, particularly regarding youth unemployment, women’s workforce participation and apprenticeship opportunities. However, the situation is especially dire in Pakistan due to sluggish economic growth.

Efforts have been made to address these issues, including vocational training programmes and initiatives to increase female employment in technical sectors, but significant gaps remain. Youth unemployment remains high, and female participation in the labour force continues to lag behind global averages. Pakistan’s apprenticeship system requires expansion and modernisation to align with current market demands.

Many unskilled workers have unrealistic career expectations. Without acquiring essential skills, their career progression remains limited. South Asia has a predominantly young population, yet youth unemployment is alarmingly high. A lack of job opportunities and inadequate skill development programmes further exacerbate the issue.

Women’s workforce participation remains significantly lower than that of men. Even among educated women, unemployment rates are disproportionately high due to cultural, social and economic barriers. Pakistan’s labour market has long struggled with structural inefficiencies, particularly concerning youth unemployment, women’s workforce participation, and apprenticeship programmes. While some progress has been made in recent years, substantial challenges continue to hinder sustainable economic growth and social development.

Pakistan has one of the youngest populations globally, yet youth unemployment remains a major concern. As of June 2024, the overall unemployment rate stood at 6.3 per cent, equating to approximately 4.51 million jobless individuals. However, the situation is more severe among young people, with an unemployment rate of 11.1 per cent among those aged 15-24. This crisis stems from multiple factors, including a mismatch between skills and job requirements, a lack of vocational training, and limited job creation in key industries.

Education institutions in Pakistan often fail to equip students with market-relevant skills, leaving graduates unable to meet employer expectations. Hiring freezes caused by economic uncertainty have worsened the problem, as businesses remain reluctant to expand their workforce.

A robust apprenticeship system is crucial for bridging the skills gap and improving employability. However, Pakistan lags far behind developed economies in this regard. In countries like Germany and the UK, there are 39 apprentices per 1,000 workers, while India has five per 1,000. In stark contrast, Pakistan has only 0.3 apprentices per 1,000 workers, reflecting a severe deficiency in vocational training and on-the-job learning opportunities.

Despite some progress, women’s labour force participation in Pakistan remains significantly below global standards. In 2023, only 24.46 per cent of Pakistani women were engaged in the labour force, compared to the global average of 51.07 per cent. Even among educated women, unemployment rates remain high due to socio-cultural barriers, workplace discrimination, and a lack of supportive policies such as maternity benefits and flexible work arrangements.

Initiatives like the ‘Roshni Baji’ programme, which trained 200 women as certified electricians in Karachi, have gained attention for breaking gender norms in technical fields. However, such isolated efforts need to be scaled up and integrated into national labour policies to create a meaningful impact.

As of 2015, more than 30,000 apprentices were undergoing training across 2,751 industries in 276 trades. However, this accounted for less than 10 per cent of the more than 350,000 vocational trainees produced annually by educational institutions. The gap between theoretical training and practical industry exposure remains a significant barrier to skill development.

To tackle these challenges, a multi-faceted approach is required. Strengthening vocational training is critical -- technical education institutions must expand, and curricula should be aligned with industry needs. A structured apprenticeship framework, supported by tax incentives for businesses, could encourage on-the-job training. Policies promoting workplace inclusivity, such as subsidised childcare and anti-discrimination laws, should be reinforced. Public-private partnerships can also play a key role in bridging skill gaps by offering industry-relevant training programmes.

Pakistan’s workforce has immense potential, but without strategic interventions, the country risks falling further behind in the global labour market. Addressing youth unemployment, empowering women, and strengthening vocational training are essential steps towards sustainable economic growth.