Pakistan Economic and Social Review - Lahore


School of Economics, University of the Punjab, Lahore
ISSN (print): 1011-002X
ISSN (online): 2224-4174

The issue of unemployment is both deep rooted, burning and one of the major economic issues in Pakistan. It is perplexing as the officially reported level of unemployment are understated and underestimated (much owing to the methodology used to calculate it), despite the observed periodic rises in the rate of investment and expansions in economic growth rates. The present study calculates the duration adjusted unemployment rate by applying Boorach, V., K. (2002) formula, which helps to convert under-employment into full open unemployment. Three different scenarios for duration unemployment rates are utilized, as given in the Labor Force Survey 2013-14 & 2017-18.  The official unemployment rate has been reported as 5.8% for 2017-18. The results of this study indicated that unemployment under scenario one, is as high as 10.02 percent in Pakistan, while duration of working hours were 15- 24 hours in a week; increased by 4.8% higher than that of official unemployment. The estimated unemployment rate is as high as over 25 percent under scenario two and three (sigma = 0.7 & 0.8) respectively. The urban and rural unemployment were 9% and 14%, under scenario one, respectively (sigma = 0.8). The same under scenario two and three were 25% and 31 % in urban (sigma =0.8) and 25% and 28% (sigma = 0.8) for rural areas under scenario two and three, respectively. The unemployment rate is higher for females, i.e.  15.7% (scenario one, sigma =0.8), as compared to males’ of 9%. The same rate for females was over 28% for inequality of 0.8 for scenarios two and three. However, the same rates for males were 24% and 29% for scenario 2 and 3, respectively. Among all provinces, unemployment was highest in KPK and Punjab, as compared to other provinces. All above, indicated that unemployment rates were much higher than that of the official rate, in all respects. It is also clear that unemployment was hidden in the under-employment definition. There is a need to chalk out better economic policies to manage human resources; focused on to generate employment opportunities to manage unemployment and underemployment.



Assistant Professor

Department of Economics, University of Lahore, Pakistan



Assistant Professor

Department of Economics, The University of Lahore, Lahore – Pakistan.



Professor of Economics

The University of Lahore, Lahore – Pakistan




Type: Articles
Volume: 58
Issue: 2
Language: English
Id: 6059ab17584f7
Pages 181 - 206
Published December 31, 2020


Department of Economics, University of the Punjab, Lahore
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