Unemployment assuming alarming trend in Pakistan
By Shahid Rizvi
The problem of unemployment in Pakistan is now taking a dangerous turn because of political instability and wrong economic policies during at last 47 years. The population is multiplying while job opportunities are almost stagnant.
The problem is further aggravated by the migration of large chunks of the population from rural areas to urban areas mostly large towns. It is estimated that at least 10 to 15000 people from rural areas migrate to cities every month. the mechanization of agriculture is also pushing the people and to the cities. On the other hand, industries are faced by problems like power shortages and the non-development of infrastructure.
Another problem which hinders the absorption of such persons is that they have no training for jobs in the city. Moreover, no reliable data is available regarding migration, professional efficiencies, job opportunities and openings, and other allied subjects.
It is suggested that employment exchanges be established in all major cities and district headquarters. These exchanges can also be established in the private sector on a commercial basis and co-ordinate with the Statistical Division of the Ministry of Finance and Ministry of Labour and Manpower.
Such employment exchanges were functioning in Karachi a decade ago under the government and were beneficial to the people. For some unknown reason,, the government closed them.
Karachi – a case study
We will take Karachi as a case study for unemployment problems for the following reasons: Karachi is the nerve center of economic activities of the country, it is a very sensitive area because political activities here affect the country’s economy, census, figures for Karachi or more reliable than the figures of rural areas and other towns. It has an international airport, and seaport, is more developed industrially and the solution to the problem in Karachi will be a good model which can be applied with due alterations all over the country.
Employment in Karachi is due to two main factors. Firstly, overpopulation due to increased birth rate and inflow of migrants – local and foreign. Secondly, a drastic decrease in economic activity and a lack of Industrial stability and development.
The other reasons that indirectly but very forcefully contribute to the problem are the law and order situation; political, social, religious, and linguistic prejudices, and the lack of civic amenities.
Karachi has a population of 10 million i.e. 1/12th of the country’s population. Some of the localities comprise almost 1 million people.
Unemployment
The workforce cannot be correctly ascertained due to a lack of senses but it is estimated at 28.11% which certainly does not present the connected picture. This figure is too low against the actual, because of the ratio of idle population in Karachi is low. Approximately 69.54% of the people up to the age of 60 years and above are engaged and economic activities. A lion’s share of the manufacturing, trading, and services sector is instituted here. Every year about 30,000 youth attain maturity, and some 10,000 leave academic Institutions to seek jobs.
The rate of unemployment is approximately 5.85% which puts the number of unemployed persons at 1,20,000. This is a formidable figure from every aspect. Out of this figure, the number of permanent Karachi residents, those coming from Interior Sindh, Punjab, NWFP, and Baluchistan, and foreign illegal immigrants cannot be ascertained.
The estimated figure of illegal migrants is 1.5 million. The immigrants include Bangladeshis, Nigerians and other African nationals, Iranians, Afghanis etc. However, the majority are from Bangladesh. Unfortunately, most of these immigrants have got national identity cards through unfair means.
For now, we are concerned with the genuine citizens of Pakistan, both from upcountry and those who migrated after the partition of India in 1947 and settled in Karachi.
It is necessary that an organisation be set up to regulate employment opportunities and openings. Training of skilled and unskilled labor, standardization of salaries, and terms and conditions of employment holding refresher courses and courses to impact skills will produce better workers who can contribute more to the country’s economy.
A small office named ‘Employment aid’ was opened in North Nazimabad, a suburb of Karachi on an experimental basis. Though it worked for only a few weeks, the response was impressive. Jobless persons, big manufacturing concerns, corporations, multinationals, medium-sized firms, other establishments, and small firms, both technical and non-technical organizations approached it. Although it was out of the way from busy trading centers and the SITE areas, more than 100 persons per week contracted them for jobs. The ratio of providing jobs was a good 45%.
At present Karachi has as many as five or six establishments working as employment exchanges but mostly they deal in exporting manpower which is a very lucrative business. Their interest in providing local employment is non-existence.
With foreign capital investment coming into Pakistan in a big way, the requirement for skilled manpower will inevitably increase. The shortage of qualified and skilled laborers will be felt even more.
A new project
A new project should be initiated to centralize sharing the exchange of information on employment opportunities and unemployed persons at one point. Its main aim should be to provide the right man for the right job on the basis of assessments of job requirements. This will require the compilation of necessary data to use in the operation. In addition to this, the organization must have powers to cope with problems arising out of its operation.
Subordinate Institutions under the organization should be set up to impart necessary skills to unemployed persons in the fields of computer, accounts, secretarial practices, and other non-technical professions. Workshops and technical schools for technical education should also be set up to provide information and practical knowledge on the cottage industries and handicrafts to women and crippled people.
The subordinate institutions are necessitated by the fact that a majority of the people do not fulfill the education standard requirement. They have an urgency to financially support their families. This employment exchange will work on a private basis. It will be managed by its manager. It will start with the compilation of data of jobless people on the one hand, and employment opportunities on the other.
The compilation of data will include all organizations, government and private. The public sector will have to be started to route all job requirements through this employment exchange. In the next stage, this exchange will take steps to assess and evaluate the capability of the incumbents to be referred to the employer. It could be arranged that instead of selection of the candidates by employment exchange, the employer is asked to come over and select their staff. This will save the time of employees and prospective employers.
The organization will have to be financed initially by the government / private sector and will run on a self-help basis. The expenses will be met by charging a fee for enrollment, service charges from employers, fee for courses under its institutions’ refresher courses, etc.
