Report

On
Unemployment
Submitted To:

Mam Sarah Rehman

Submitted By:
ShehrozAyaz (05)
Syed Fahad (20)
UsmanRasheed (15)
UmairEjaz (16)

Date of Submission:
19November, 2014

Masters of Business Administration

Punjab Group of Colleges

University of Central Punjab

 Unemployment:
Unemployment is the number of people in the work
force who want to work but do not have a job. It is generally stated as a
percentage, and calculated by dividing the number of people who are
unemployed by the total work force.

Problems & Solutions of Unemployment:

1-Causes of Unemployment
2-Effects of Unemployment
3-Solutions of Unemployment

Causes of Unemployment in Pakistan:

Growth of Population:
One of the major problems regarding unemployment
in Pakistan is uncontrolled growth of population.
The population of Pakistan is increasing at very high
rate this time.
According to the statistical the population of Pakistan
is increasing at the rate of 2.2%.
There are plenty of factors responsible for over
population such as early marriages, illiteracy, desires
for sons, lack of awareness etc.
Poor Education System:
The education system in Pakistan has been really poor
since the creation of Pakistan. Unfortunately any

government since independence didnt take especial

steps to make the education system good.
Education system in Pakistan is unbalanced. It has
been seen even talented students left study due to
injustice of system.
Violence and Terror Activities:
Terrorist activities in Pakistan are on peak at this time
especially in Karachi, therefore situation in Karachi is
really threatening and alarming and due to this the
nationals and as well as foreigners are frightened to
invest in Pakistan. So when investors will not invest
so how can job or earning opportunities are being
created?
Energy Crisis:
There are many sources of producing of energy in
Pakistan but due to lack of proper planning and efforts
Pakistan is having problem of energy crisis.
The government of Pakistan is unable to provide
electricity to residential areas in Pakistan.
High Age of Retirement:
The age of retirement in Pakistan is 60 years and it is
really high age of retirement
The government of Pakistan is directly responsible for
this factor.
There are various educated people are in wait of jobs
but high age of retirement is making young ones
frustrated.

 Poverty:
The poverty rate is also on peak therefore uneducated
and unskilled people can be found easily in Pakistan.
Labor class is also affected by the unemployment.
Due to unemployment the living standard of
Pakistanis is going down with the passage of time.
People are lacking from their basic needs.
Advanced technology:
Sometimes unemployment is a result of advanced
technology, such as computers or robots, which
replaces worker tasks with machines. If the workers
are not retrained, they may not have the skills needed
to get a new job.
Job outsourcing:
Unemployment can also be caused by job outsourcing,
when a company moves its manufacturing or call
centers to another country where labor costs are
cheaper.

Effects of unemployment:
Mental health:
Mental health problems like: Law self-confidence,
feeling unworthy, depression and hopelessness.
With the lost income and the frustration involved in it,
the recently unemployed may develop negative
attitudes toward common things in life and may feel
that all sense of purpose is lost.
Frequent emotions could be low self-esteem,
inadequateness and feeling dejected and hopeless.

 Health diseases:
The unemployment overall tension can increase
dramatically general health issues of individuals.
Tension at home:
Quarrels and arguments at home front which may lead
to tension and increased numbers of divorces etc.
Political issues:
Loss of trust in administration and the government
which may leads to political instability.
Tension over taxes rise:
Unemployment also brings up discontent and
frustration amongst the tax paying citizens.
In order to meet the demands of the unemployment
fund the government many a times may have to
increase the taxes.
Insecurity amongst employees:
The prevailing unemployment and the plight of the
unemployed people and their families may create fear
and insecurity even in the currently employed people.
Crime and violence:
Increase in the rate of crime.
Suicide cases:
Increase in the rate of suicide attempts and actual
suicides as well.
Social outing:
Unemployment may bring a decrease in social outings
and interactions with other people, including friends.

Stigma:

 Unemployment brings with more than just no work. It

also brings with it the disgrace that the person has to
bear. Nobody likes to be termed as unemployed.

Standard of leaving:
In times of unemployment the competition for jobs and
the negotiation power of the individual decreases.
Thus also the living standard of people with the salaries
packages and income reduced.
Employment gaps:
To further complicate the situation the longer the
individual is out of job the more difficult it becomes to
find one.
Employers find employment gasps as a negative aspect.
No one wants to hire a person who has been out of
work for some time even when theres no fault of the
individual per say.
Lose of skills usage:
The unemployed is not able to put his/her skills to use.
And in a situation where it goes on for too long the
person may have to lose some of his/her skills.

Solution of Unemployment in Pakistan:

It will be tough ask for government to solve one of the major
problems of Pakistan Unemployment due to huge population but
still we have given some solutions to reduce the unemployment in
Pakistan and we are hopeful by following these solutions the ratio
of unemployment in Pakistan can be reduced or decreased.

 The first thing to do to reduce unemployment in Pakistan is the

proper planning by the government of Pakistan.
The education system of Pakistan should be equal and well
managed.
Well recognized training and technical institutions are need to be
established where skills programs are offered.
The age of retirement should be at least 55 years.
Remove energy crisis so that investor comes to Pakistan thus job
placement will automatically be created.
There should be peace across the country so foreigners will not
hesitate to invest in Pakistan.
The agriculture sector should be developed.
Jobs should be given purely on merits.
Encourage multinational companies to business in Pakistan.
Family planning centers should be opened to control the flow of
over population.