research paper on unemployment in pakistan

• DOI: 10.52131/joe.2022.0401.0062
• Corpus ID: 247607347

The Impact of Unemployment on Economic Growth in Pakistan: An Empirical Investigation

• Salyha Zulfiqar Ali Shah , M. Shabbir , S. Parveen
• Published in iRASD Journal of Economics 21 March 2022

Tables from this paper

7 Citations

Macroeconomic dynamics and unemployment in nigeria: the moderating role of government expenditure, the relationship between economic growth, unemployment and poverty, unleashing the power of economic forces: exploring the relationship between macroeconomic factors and unemployment in norway and uk using ardl approach, the dynamic effect of trade openness, debt, and foreign investment in ghana’s economy: an ardl bound testing approach, balancing fund and inclusive economic growth: east java provincial study, youth unemployment and social stability: investigating the linkages and possible solutions in the context of pakistan, letter regarding the article ‘head‐to‐head comparison between recommendations by the esc and acc/aha/hfsa heart failure guidelines’, 33 references, the impact of unemployment on economic growth in nigeria: an application of autoregressive distributed lag (ardl) bound testing, long term effect of economic growth on unemployment level: in case of pakistan, effect of inflation and unemployment on economic growth in pakistan, determinants of unemployment in bangladesh: a case study, the effect of unemployment on economic growth in south africa (1994-2016), the impact of unemployment and inflation on economic growth in nigeria (1981–2014), economic determinants of unemployment in pakistan : co-integration analysis, determinants of unemployment in pakistan, the relationship between unemployment and economic growth in south africa: var analysis, the impact of unemployment on economic growth in china, related papers.

Showing 1 through 3 of 0 Related Papers

Impact of Population Growth and Unemployment on Pakistan Economy

• Nayab Minhaj Department of Economics, University of Karachi, Karachi, Pakistan
• Mohammad Imran Department of Economics, University of Karachi, Karachi, Pakistan

Purpose: This study examines the impact of population on unemployment, and economic growth of Pakistan.

Methodology: The ARDL bounds testing approach is used to explore the long-term relationship between population growth, unemployment, and economic growth in Pakistan. The data used in this study is annual and spans from 1990 to 2017.

Findings: The findings show that there is a long-term relationship between population growth, unemployment, and economic growth in Pakistan, supporting the Population and Unemployment-Led Economic Growth Hypothesis.

Suggestion: It is suggested that the government of Pakistan increase the level of per capita technology, as this would promote the use of economic resources and, as a result, lead to a significant decrease in the unemployment rate.

The author retains the copyright and grants the right of first publication to the journal. 

Editor-in-Chief : Dilshad Zafar ISSN (P) : 2708-4051 ISSN (E) : Online: 2708-406X Publication Frequency : Bi-annual Review Type : Double Blind Publication Fee : Free of Cost Subject Areas : human resource management, marketing management, operations management, entrepreneurship, business ethics, international business, corporate governance, innovation management, and other interlinked areas

Journal Policy

The journal allows readers to freely read, download, copy, distribute, print, search, or link to the full texts of its articles and to use them for any other lawful purpose.

The journal is not charging any APC or submission charges.

RADS Journal of Business Management , published by Reyazuddin Research & Development Society , Jinnah University for Women, Karachi, Pakistan is licensed under a Creative Commons Attribution 4.0 International License

Editorial Office, RADS Journal of Business Management, Jinnah University for Women.

5-C Nazimabad, Karachi-74600, Pakistan.

• Publisher Home

• About the Journal
• Editorial Team
• Article Processing Fee
• Privacy Statement
• Crossmark Policy
• Copyright Statement
• GDPR Policy
• Open Access Policy
• Publication Ethics Statement
• Author Guidelines
• Announcements

Impact of Inflation and Unemployment on Economic Growth of Pakistan

• Muhammad Ramzan  

Muhammad Ramzan

Search for the other articles from the author in:

Abstract Views 6751

Downloads 5090

##plugins.themes.bootstrap3.article.sidebar##

##plugins.themes.bootstrap3.article.main##

This paper aims to identify the influence of inflation and unemployment on the economic growth of the country. This study recommends some essential policies about unemployment and inflation in the economic growth of Pakistan. In this study, the “Ordinary Least Square (OLS)” method is used with different diagnostic tests for determining the fitness of data for the investigation; and the data is collected from 1980 to 2018. The econometric results suggest that the time series is stationary because the values of t-statistic are more than t-tab and sig value is also significant. The error term on ADF is significant and that ensures that there is long term association. The results of ECM indicate that inflation and unemployment are away from the value of equilibrium. The results of multiple linear regression models indicate that inflation and unemployment are statistically insignificant, and the overall model is also statistically insignificant. There is no multicollinearity and there is no heteroscedasticity as per White test. By running the Ramsay Reset test, the researcher concludes that the model is not specified because the sig value of the t-test and f-test is significant.

E-Paper | September 17, 2024

Why graduates face higher unemployment in pakistan.

KARACHI: It may sound counter-intuitive, but research shows the likelihood of unemployment in Pakistan grows in proportion to the level of education.

A poorly developed labour market that’s unable to accommodate a rapidly growing number of educated workers has led to a high graduate unemployment rate.

A recent research paper written by Henna Ahsan and Muhammad Jehangir Khan of the Pakistan Institute of Development Economics (PIDE), which uses employment data from 2001-02 to 2020-21, shows that the gap between the rate of overall unemployment (6.3 per cent) and that of graduates (16.1pc) is almost 10-percentage-point wide.

There’re both supply- and demand-side reasons for such a substantial difference between the two rates of unemployment, according to the PIDE economists.

After staying relatively flat for decades, the number of universities grew manifold in a short span as the University Grant Commission was replaced with the Higher Education Commission in 2002. As a result, enrolment in universities grew at twice the rate of enrolment growth at other levels of education.

The “misalignment” between the demand and supply of graduates has contributed to the higher unemployment rate among recent graduates. A large number of individuals end up completing their tertiary education in subjects for which little demand exists, the paper noted.

Over 31pc of the educated youth is unemployed while women constitute 51pc of the total unemployed population in Pakistan. Data shows that enrolment in natural sciences in Pakistan is outpacing demand in the labour market.

“The gap between supply and demand is wider for graduates in natural sciences compared to social sciences and management sciences. Therefore, to address graduate unemployment, there is a need to look at the unemployment issue by fi­eld of study,” it noted.

The Labour Force Survey (LFS) does not provide data for segregated graduate disciplines and limits information to major categories like engineering, medicine, computer and agriculture. The analysis conducted by the PIDE economists shows the unemployment rate for graduates increased from 14.9pc in 2018-19 to 16.1pc in 2020-21.

Decomposing the unemployment rate into sub-disciplines produced an even gloomier picture: the unemployment rate for engineers doubled in just two years, from 11pc to 23.5pc.

Similarly, the unemployment rate for computer science graduates rose from 14.2pc to 22.6pc in the two-year period. The steep rise was from 11.4pc to 29.4pc for the graduates of agricultural sciences.

Graduates in medical sciences faced the lowest unemployment rate when compared to their peers in other disciplines. However, the unemployment rate within the medical discipline increased from 6.4pc to 10.8pc in just two years.

The unemployment rate among female graduates was about 3.8 times higher than that of their male counterparts. More than one-third of women graduates were unemployed in 2020-21.

The unemployment rate was close to 30pc for the graduates aged between 21 and 29, the highest among all age groups.

The average unemployment rate in urban areas (7.35pc) is higher than that in rural areas (5.85pc), according to the LFS 2020-21. Conversely, the graduate unemployment rate in the rural areas (22pc) is nearly twice that in the urban areas (12pc), the research paper showed.

The graduate unemployment rate is high in Khyber Pakhtunkhwa and Punjab, which shows an excess supply of graduates amid the inability of these labour markets to absorb new graduates.

Engineering graduates face higher unemployment in Khyber-Pakhtunkhwa. Agriculture graduates face a high unemployment rate in Sindh and Punjab even though these provinces are rich in agriculture.

Low-skilled graduates, poor quality of education contributes to the unemployment rate in Pakistan, the research paper said.

“For better analysis and policy, we need to add more disciplines/fi­elds of study, especially social and natural sciences, in the LFS. This will help policymakers accurately analyse the supply and demand gap of these graduates in the labour market,” it added.

Published in Dawn, April 9th, 2023

The explosion of unemployment

ECONOMY: NO COUNTRY FOR THE YOUNG

Dividends of import curbs

Revolutionising reproductive health: Viya launches Viya Telehealth

قائدِاعظم محمد علی جناح کیسا پاکستان چاہتے تھے؟

جنسی ہراسانی اور دھمکیاں: ‘سفید کوٹ پاکستانی خواتین ڈاکٹرز کی حفاظت کا ضامن نہیں’

اسٹیٹ بینک نے نئے کرنسی نوٹوں کے ڈیزائنز شارٹ لسٹ کرلیے

In Pakistan, Lawyers Oppose ‘Constitutional Package’

Emmy Awards 2024: Pro-Palestine Protests, Artists4Ceasefire Pins and Shogun Wins

World Reacts To Second Trump Assassination Attempt

What’s Early Menopause?

🔴LIVE: UNSC Debates Genocide In Gaza

Why Should You Care About Inheritance Laws?

China Extends Visa-free entry to 12 European Countries

Dear visitor, the comments section is undergoing an overhaul and will return soon.

Latest Stories

10 killed, several injured in Iran bus crash: report

India’s Manipur reopens schools, restores internet after ethnic clashes

Pakistani man accused of plot to attack New York Jewish centre will contest extradition: lawyer

On Eid-i-Miladun Nabi, national leaders urge justice, tolerance to solve prevailing issues

PM meets PPP leaders, says talks with all parties will continue on ‘Constitutional Package’

First Palestinian ambassador to Spain submits credentials

‘We must listen without judgement’: Nadia Afgan shares an important message for Suicide Prevention Month

Asim Abbasi returns to direct episode of The Famous Five season 2

American music producer Sean ‘Diddy’ Combs arrested amid sexual assault lawsuits

Most popular.

Israel hit by hypersonic ballistic missile

Govt slashes petrol prices by Rs10, diesel by Rs13.06

Top lawyers oppose constitutional amendment bill

After day-long build-up, NA session on ‘constitutional package’ begins before midnight and adjourns within minutes

PTI ‘made all-out efforts’ to stop amendment

Imran’s tweets create uproar, mystery over who runs account

‘Working weekend’ comes to naught

Trump is safe following shooting near Florida golf club: reports

Political drama

Constitutional Package — judicial overhaul or national suicide?

For Tirah Valley’s internally displaced, there’s no way home

Editorial: Parliament injures itself when it blacks out some lawmakers’ speeches

The ‘proposed amendment’ cannot get any more personal

Nehru was without doubt accepted as a symbol of India’s multicultural identity

The political is personal

Keeping a solemn oath solemn

Perverse third way

Punjabi nationalism

Parliament’s place

Afghan policy flux, hiv/aids outbreak.

Complete impunity

Melting glaciers, fbr plans digital invoicing, audits as tax gap hits rs7tr.

Youth Unemployment in India: Do Aspirations Matter?

• Published: 11 September 2024

Cite this article

• Basit Abdullah 1 ,
• Vinoj Abraham 1 &
• Ritika Jain 1  

An often discussed but less researched dimension of youth unemployment is voluntary unemployment caused by the mismatch between available opportunities in the labour market and employment aspirations. In this paper, we attempt to explore this misalignment between employment aspirations and the jobs in the labour market as a factor responsible for higher incidence of unemployment among youth. We build a measure of relative occupational aspirations based on the premise that aspirations are shaped by the socio-economic context and educational attainment of an individual. Our analysis provides evidence for a lack of employment opportunities that satisfy the employment aspirations of the youth. The mismatch between aspirations and opportunities measured as relative occupational aspirations gap, is particularly high among youth with tertiary education, and female youth have higher aspirations gap compared to males. Based on our analysis, which includes both multinomial probit and instrument variable (IV) probit models, we find that youth with higher aspirations gap are more likely to be unemployed. We argue that increasing educational levels raise job-related expectations and aspirations. The lack of quality employment opportunities matching the aspirations could be a contributing factor to higher unemployment among youth. An effective policy approach requires the creation of better-quality jobs that align with the aspirations of young, educated labour force.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Subscribe and save.

• Get 10 units per month
• Download Article/Chapter or eBook
• 1 Unit = 1 Article or 1 Chapter
• Cancel anytime

Price includes VAT (Russian Federation)

Instant access to the full article PDF.

Rent this article via DeepDyve

Institutional subscriptions

Similar content being viewed by others

Youth unemployment and active labor market policies in europe.

Transitions In and Out of Unemployment among Young People in the Irish Recession

Long-Term Youth Unemployment: Evidence from Turkish Household Labour Force Survey

Own calculation based on PLFS 2018–19.

We categorise people into four groups based on their income levels, as proxied by per capita consumption expenditure, divided into four quartiles.

The survey itself has covered only 71 districts, which are representative of the whole Indian union. Therefore, the total number of districts in our analysis is 71.

We use level of general education in an increasing order as given in the data from 1 to 13.

One-digit occupational classification of NCO-2004 is a hierarchy of occupations in the decreasing order based on the skill level involved in the performance of that occupation. We have reversed the order and taken the occupations in an increasing order of hierarchy from 1 to 9. The concept of skill level has not been applied to legislators, senior officials, and managers in the NCO one-digit classification, because the skills required for these roles vary significantly, making it impractical to link them to any of the broad skill levels. While these occupations may not be linked to a specific skill level or adequately defined by categories of academic and technical qualifications, they do require significant skills and experience to perform their tasks. Moreover, these roles also offer substantial rewards, making them highly sought after in the labour market. Therefore, this group of occupations has been placed at the top of the hierarchy of categorisation of occupations in our analysis.

Since the range of educational level and occupation levels are different in this case, we standardise both by dividing a person’s education level by 13 and occupation level by 9.

Usual Status approach takes reference period of 365 days to measure unemployment. A person is classified as unemployed according to UPSS if he/she has been unemployed and looking for work for more than half period of the year. It, however, excludes those who have worked for at least 30 days as subsidiary worker.

We assigned the outliers lower weight so that they are closer to other values in the data.

GER is the percentage of population attending college and university out of the total eligible population aged 18 to 23.

Inactive are those who are neither in labour force nor in education. Most of them are attending domestic duties.

Occupational scores are given based on the skill-based hierarchical classification of occupations at one-digit code. It has nine occupational divisions in the order 1 to 9.

The value of F-statistic is greater than 10, which suggests that the instrument is strong. The p value is significant, and the higher value of Chi-square statistics indicates that ROAG is endogenous and correlated with the error term in the model. We reject the null hypothesis of no endogeneity by Wald test of exogeneity of the instrumented variables.

Abdullah, B., and K. Mansoor 2023. Employment crisis and decent work deficits for youth in India. Journal of Social and Economic Development .

Abraham, V. 2017. Stagnant employment growth: Last three years may have been the worst. Economic and Political Weekly 52 (38): 13–17.

Google Scholar  

Abraham, V. 2019. Jobless growth through the lens of structural transformation. Indian Growth and Development Review .

Akerlof, G.A., and R.E. Kranton. 2010. Identity economics . In Identity Economics: Princeton University Press.

Book   Google Scholar  

Angrist, J.D., and A.B. Krueger. 1991. Does compulsory school attendance affect schooling and earnings? The Quarterly Journal of Economics 106 (4): 979–1014.

Article   Google Scholar  

Appadurai, A. 2004. The capacity to aspire: Culture and the terms of recognition. Culture and Public Action 59: 62–63.

Arif, G. M., and N. Chaudhr. 2008. Demographic transition and youth employment in Pakistan. The Pakistan Development Review , 27–70.

Bairagya, I. 2018. Why is unemployment higher among the educated. Economic & Political Weekly 53 (7): 43.

Bernard, T., and A. S. Taffesse. 2012. Measuring aspirations: discussion and example from Ethiopia. International Food Policy Research Institute Discussion Paper , 1190.

Bogliacino, F., and P. Ortoleva. 2013. The behavior of others as a reference point. Columbia Business School Research Paper , (pp. 13–55).

Card, D., and T. Lemieux. 2001. Can Falling Supply Explain the Rising Return to College for Younger Men? A Cohort-Based Analysis. The Quarterly Journal of Economics 116 (2): 705–746.

Chatterjee, E., S. Desai, and R. Vanneman. 2018. Indian Paradox: Rising Education, Decling Women’s Employment. Demographic Research 38: 855.

Dhar, S. 2019. Job preferences and career priorities. Youth in India (pp. 13–25). Routledge India.

Domadenik, P., and F. Pastore. 2004 (June). The impact of education and training systems on the labour market participation of young people in CEE economies. A comparison of Poland and Slovenia. In An Enterprise Odyssey. International Conference Proceedings (p. 148). University of Zagreb, Faculty of Economics and Business.

Gardiner, D., and M. Goedhuys. 2020. Youth aspirations and the future of work a review of the literature and evidence. ILO Working Papers , (995096093502676).

Genicot, G., and D. Ray. 2017. Aspirations and inequality. Econometrica 85 (2): 489–519.

Genicot, G., and D. Ray. 2020. Aspirations and economic behavior. Annual Review of Economics 12: 715–746.

Ghose, A.K. 2013. Decent Employment. Indian Journal of Human Development 7 (2): 351–352.

Greene, W.H. 2003. Econometric analysis . Pearson Education India.

Gutman, L., and R. Akerman. 2008. Determinants of aspirations [wider benefits of learning research report no. 27] . Centre for Research on the Wider Benefits of Learning, Institute of Education, University of London.

Himanshu. 2011. Employment trends in India: A re-examination. Economic and Political Weekly , 43–59.

International Labour Office 2013. Global employment trends for youth 2013: A generation at risk . International Labour Office.

Jeffrey, C., P. Jeffery, and R. Jeffery. 2010. Education, unemployment and masculinities in India . Social Science Press-Orient BlackSwan Joint Publication.

Jeffrey, C. 2010. Timepass: Youth, class, and the politics of waiting in India . Stanford, CA: Stanford University Press.

Jepsen, C. 2008. Multinomial Probit estimates of college completion at 2-year and 4-year schools. Economics Letters 98 (2): 155–160.

Kannan, K.P., and G. Raveendran. 2019. From jobless to job-loss growth. Economic and Political Weekly 54 (44): 38–44.

Khare, M. 2014. Employment, employability and higher education in India: The missing links. Higher Education for the Future 1 (1): 39–62.

Klasen, S., and J. Pieters. 2015. What explains the stagnation of female labor force participation in urban India? The World Bank Economic Review 29 (3): 449–478.

Mains, D. 2007. Neoliberal times: Progress, boredom, and shame among young men in urban Ethiopia. American Ethnologist 34 (4): 659–673.

Mains, D. 2012. Hope is cut: Youth, unemployment, and the future in urban Ethiopia. Temple University Press .

Mani, A., and E. Riley. 2019. Social networks, role models, peer effects, and aspirations (2019/120) . WIDER Working Paper. https://www.wider.unu.edu/sites/default/files/Publications/Workingpaper/PDF/wp-2019-120.pdf

Mehrotra, S., J. Parida, S. Sinha, and A. Gandhi. 2014. Explaining employment trends in the Indian economy: 1993–94 to 2011–12. Economic and Political Weekly, 49–57.

Mehrotra, S. 2019. Informal employment trends in the Indian economy: Persistent informality, but growing positive development (ILO Working Paper).

Mishra, V., Chapman, T., Sinha, R., Kedia, S., & Gutta, S. 2018. Young India and work: A survey of youth aspirations. In Observer Research Foundation, World Economic Forum .

Mitra, A., and S. Verick. 2013. Youth employment and unemployment: An Indian perspective. International Labour Organization.

Msigwa, R., and E. R. Kipesha. 2013. Determinants of youth unemployment in developing countries: Evidences from Tanzania. Journal of Economics and Sustainable Development .

Mukherjee, P. 2015. The effects of social identity on aspirations and learning outcomes: A field experiment in rural India. Unpublished working paper, College of William and Mary .

OECD, 2017. Youth aspirations and the reality of jobs in developing countries . Development Centre Studies, OECD Publishing, Paris.

Sarkar, S., B. Chakravorty, and C. Lyonette. 2020. Social identity and aspiration—Double jeopardy or intersectionality? Evidence from rural India (No. 724). GLO Discussion Paper.

Sen, Amartya K. 1987. The standard of living . Cambridge: Cambridge University Press.

Saito, M. 2003. Amartya Sen’s capability approach to education: A critical exploration. Journal of Philosophy of Education 37 (1): 17--33.

Staiger, D., and J.H. Stock. 1997. Instrumental variables regression with weak instruments. Econometrica 65 (3): 5.

Sundari, S. 2020. Structural changes and quality of women’s labour in India. The Indian Journal of Labour Economics 63 (3): 689–717.

Ray, D. 2006. Aspirations, poverty, and economic change. Understanding poverty , 1, 409–421.

Ryan, P. 2001. The school-to-work transition: A cross-national perspective. Journal of Economic Literature , 39 (1), 34–92.

Tenjo, J. 1990. Opportunities, Aspirations, and urban unemployment of youth: The case of Colombia. Economic Development and Cultural Change 38 (4): 733–761.

Unni, J. 2016. Skill gaps and employability: Higher education in India. Journal of Development Policy and Practice 1 (1): 18–34.

Verdú, C.A., L.T. Cortés, and M.A.D. Rodríguez. 2008. To find or not to find a first” significant” job. Revista De Economía Aplicada 16 (46): 37–59.

Wicht, A., A. Miyamoto, and C. M. Lechner. 2020. Are girls more ambitious than boys? Vocational interests partly explain gender differences in occupational aspirations. Journal of Career Development , 0894845321991665.

Download references

Acknowledgement

The earlier version of this paper was presented at the Centre for Development Studies (CDS), the Indian Society of Labour Economics (ISLE) conference at IIT Roorkee, and the Goa Institute of Management. We gratefully acknowledge the comments received from the discussants and participants.

We did not receive any funding for the paper.

Author information

Authors and affiliations.

Centre for Development Studies, Thiruvananthapuram, Kerala, India

Basit Abdullah, Vinoj Abraham & Ritika Jain

You can also search for this author in PubMed   Google Scholar

Corresponding author

Correspondence to Basit Abdullah .

Ethics declarations

Conflict of interest.

On behalf of all authors, the corresponding author states that there is no conflict of interest.

Additional information

Publisher's note.

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

See Tables 10 , 11 , 12 .

Rights and permissions

Springer Nature or its licensor (e.g. a society or other partner) holds exclusive rights to this article under a publishing agreement with the author(s) or other rightsholder(s); author self-archiving of the accepted manuscript version of this article is solely governed by the terms of such publishing agreement and applicable law.

Reprints and permissions

About this article

Abdullah, B., Abraham, V. & Jain, R. Youth Unemployment in India: Do Aspirations Matter?. Ind. J. Labour Econ. (2024). https://doi.org/10.1007/s41027-024-00510-8

Download citation

Accepted : 16 July 2024

Published : 11 September 2024

DOI : https://doi.org/10.1007/s41027-024-00510-8

Share this article

Anyone you share the following link with will be able to read this content:

Sorry, a shareable link is not currently available for this article.

Provided by the Springer Nature SharedIt content-sharing initiative

• Aspirations
• Unemployment

JEL Classification

• Find a journal
• Publish with us
• Track your research

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

DETERMINANTS OF UNEMPLOYMENT IN PAKISTAN: A STATISTICAL STUDY

The current study has been designed to investigate the relationship between unemployment and the different factors having impact on unemployment directly or indirectly. The basic purpose of the study is to check that either their effects are significant or insignificant. At first, normality, independence, homoscedasticity and autocorrelation are checked. Stepwise regression with forward selection technique is utilized for the model selection. Model selection criteria used is to select a best fitted model. For the said purpose, yearly data of Pakistan from 1990 – 2010 is utilized. In the study, unemployment is the dependent variable and GDP, FDI, Budget deficit, Inflation, Literacy rate, population growth rate and Labor force are taken as explanatory variables. Our results revealed that the Labor force has a positively effect on the unemployment while inflation and FDI has a negative effect on the unemployment. SPSS, E-views, Mini tab and Microsoft Excel software's are used to an...

Related Papers

Sobia Zaman , Dr. Asif Kamran

This study has been carried out to examine the determinants of unemployment in Pakistan for the period of 1981-2010 using Regression Model, descriptive stats and graphs. Population growth, Interest rate, foreign direct investment, gross domestic product and literacy rate in Pakistan are being used as explanatory variables. Also the state of democracy in the country has been taken into consideration. Findings include that population growth fuels unemployment positively and where as literacy rate and foreign direct investment has negative impact on unemployment. Often it is perceived that unemployment rate of rural areas is greater because in rural areas there are less chances of employment as compared to urban areas where there are more chances of employment due to more industries.Political regime is also taken into consideration as a dummy variable. In this research we also analyze factors underlying the employment, study the trends of variables involved in the study and suggest recommendations for reduction in unemployment in Pakistan. Numerical data collected from various sources which will be presented in forms of charts and tables and will be given statistical and mathematical treatment through use of E-views. The study is by and large descriptive in nature all the findings will be analyzed theoretically and objectively. Keywords Foreign direct investment (FDI) · Real gross domestic product (RGDP) · International monitory fund (IMF) · Unemployment rate (UE) · Population growth rate (PGR) · Political regime (PR) · Literacy rate (LR)

Shahid Maqbool

This study analyzes the determinants of unemployment in Pakistan over a period of 1976-2012 by examining the empirical relationship among the unemployment, population, foreign direct investment, gross domestic product, inflation, and external debt. It is hypothesized that these factors exert a strong impact on unemployment rate in the economy of Pakistan. Autoregressive Distributed Lag (ARDL) approach has been applied to test determinants of unemployment. Empirical results reveal that gross domestic product, population, inflation, and foreign direct investment are significant determinants of unemployment in Pakistan in short-run as well as long-run. The CUSUM and CUSUMSQ are showing that the model is structurally stable within the 5% of critical bounds. The Phillips curve exists in Pakistan both in shortand long-run.

Rizwan Raheem Ahmed

Muhammad Bilal Hassan

In this research paper we study macroeconomic factors to analyze the economic condition of Pakistan. Economic strength of a country is generally measured by GDP rate. There are several factors that affect the economy of a country, unemployment is one of them. An analysis is conducted on unemployment and GDP, percent growth rate data has been taken of both macroeconomic factors. Our objective is to check the impact of unemployment on GDP. Results are derived from a thorough study in which correlation results conclude that unemployment has a strong relation with GDP of strong intensity. Introduction:

International Journal of Business Society

MUHAMMAD A MAZHER , Jauhari Dahalan

Unemployment is one of the challenges facing today’s world. The impartial of the study was to examine the long-run and short-run relationships between unemployment and its macro-economic determinants comprising energy usage, FDI, GDP growth, inflation deflator, and population over 1970-2018. After using the Augmented Dickey-Fuller (ADF) tests through Schwarz Info Criterion (SIC), Akaike Info Criterion (AIC) and Phillips-Perron (PP) for unit-root, this study employed Auto-Regressive Distributed Lag (ARDL) bounds testing approach. The regression result proposes that under short-run and long-run energy usage, FDI and Population have together been domineering in amplification of the long-run unemployment rate. The significant and negative coefficient of error correction term indicates to the high speed of adjustment to achieve the long-run equilibrium. In conclusion, the study proposes the government should increase the level of aggregate supply, economic growth along with job formation, form an encouraging environment that induces much foreign direct investments (FDI) and control the population pressure, consolidate the existing entrepreneurship activity with new entrepreneurial entrants to create more employment and fascinate a huge pool of unemployed population.

iqra iqra cheema

Abdul Qayyum

This paper critically analyzes the effect of growth in real GDP on reduction in unemployment. In this paper deviated value of GDP and unemployment from long term trend is used. Annual data for the period 1960-2005, taken from Economic Survey of Pakistan and International Financial Statistic is used for analysis. The study revealed that growth in real GDP is negatively related to unemployment. The negative effect of GDP growth on unemployment reduction is low, implies that other factors like lose employment policies and non availability of professional skills retard the employment generating capacity of GDP growth rate. The results signify the threshold level of GDP growth rate. Based on the findings of the study it is recommended that market based economy development is needed. Privatization which is believed to be depending on efficiency may help in this regard. Long term skill development and merit based recruitment policies may also accelerate employment generating capacity of output growth. If government of Pakistan want to retard unemployment they must maintain GDP growth rate above the threshold level other wise unemployment will rise instead of retarding it.

Asim Iqbal, PhD , tariq hussain

—The study is aimed to test causal relationship between growth and unemployment, using time series data for Pakistan from 1972 to 2006. Growth is considered to be a pathway to decrease the level of unemployment. Unemployment is a social and political issue. It is a phenomenon where human resources are wasted leading to deacceleration in growth. Johanson Cointegration shows that there is long run relationship between growth and unemployment. For short run dynamics and causality, the study utilizes Vector Error Correction Model (VECM). The results of VECM indicate that there is short and long run causal relation between growth and unemployment including capital, labor and human capital as explanatory variables.

Malik Shahzad

Unemployment is a persistent problem in Pakistan since a long time. One of the core reasons behind unemployment is the rapid growth in population. Pakistan is the 6 th most populous country in the world. Every year population increases at a percentage of 1.93 and almost same proportion come in labour force stream and this massive increase in population add 3 million potential workers to the labour force annually. This study is the first ever attempt to undertake the economic stability and its impact specifically on male unemployment in the context of Pakistan. The time series data has employed for the period 1973-2015 and auto regressor distributed lags (ARDL) bound testing approach has been applied on this data. The results revealed that budget deficit has a negative and significant association with male unemployment, as it increases unemployment ratio. Political stability also exerts an improving role in creating employment opportunities. However, external debt exerts positive impact on unemployment. Whereas, foreign direct investment (FDI) indicates an improving impact on unemployment; it brings down male dependency rate because foreign injection of capital will be invested indifferent projects and sectors which surely need labour force. Simply, it will increase employment rate.

Loading Preview

Sorry, preview is currently unavailable. You can download the paper by clicking the button above.

RELATED PAPERS

Nadim Akhtar

Abdul Saboor

Dr.Faraz Ahmed Wajidi

nooreen mujahid

Mehmet BÖLÜKBAŞ

JURNAL PERSPEKTIF EKONOMI DARUSSALAM

Muhamad Fathul Muin

Akbar zeb Khan

Imran Zaman

SHAH SHAYAN

SSRN Electronic Journal

Md. Tanjil Hossain

EDITORIAL BOARD

Shahinshah Babar Khan Khan

Pakistan Journal of Humanities and Social Sciences

Farhana Nosheen

Himali Loku Pathiranage

IJMSBR Open Access Journal

Abdulrhman Alamoudi

Journal of Poverty, Investment and Development

Zahir Faridi

Shoukat Ali

Dr. Habib ur Rehman Business Administration

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024