Pakistan is facing a growing employment challenge as the economy continues to create fewer jobs than needed for its expanding workforce. The World Bank says one in six people entering the job market is unable to find work, while the country’s unemployment rate reached 7% in 2024.
Around 3.5 million people join Pakistan’s workforce every year. However, the number of available jobs has not kept pace with this growth, leaving many young people struggling to find employment.
The World Bank also reported that Pakistan created 17.7 million net new jobs between 2018 and 2024. However, most of these jobs were informal, low-paid or based on self-employment, which often provides workers with limited income security and fewer benefits.
The employment problem is also affecting household incomes. According to the World Bank, real wages declined by an average of 3.4% annually between 2018/19 and 2024/25, as rising prices reduced people’s purchasing power.
The report highlights the need for faster economic growth, stronger investment and business reforms to create more jobs. Pakistan must also improve opportunities for young people entering the workforce each year.
