• Male unemployment rises to 5.9pc; female rate climbs to 9.7pc
• ‘Gig economy’ workers account for 2.9pc of primary, 10.6pc of secondary jobs

ISLAMABAD: Pakistan’s unemployed population surged by a staggering 31 per cent, or 1.4 million, rising from 4.5m in 2020-21 to 5.9m in 2024-25, highlighting mounting challenges in the country’s labour market.

The rise in unemployment was observed across all age groups and both genders over the past four years, indicating a broad-based deterioration in labour market conditions, according to a government report released by Minister for Planning and Development Ahsan Iqbal on Tuesday.

The unemployment rate also showed an upward trend across all age groups. For the prime age group of 15-24 years, it was estimated at 12.6pc in 2024-25, up from 11.1pc in 2020-21.

Among individuals aged 15-29, the rate rose to 11.5pc from 10.3pc, reflecting growing joblessness among the youth. Overall, the average unemployment rate increased to 6.9pc, compared to 6.3pc in the previous labour force survey.

Among males, the unemployment rate climbed from 5.5pc to 5.9pc, while for females it increased more sharply from 8.9pc to 9.7pc. In rural areas, unemployment rose from 5.8pc to 6.3pc, and in urban areas, it edged up from 7.3pc to 8pc.

The Pakistan Bureau of Statistics (PBS) conducted the Labour Force Survey (LFS) 2024-25 at the provincial level. This was the 37th round in the series of surveys, with data collected electronically using tablets.

The findings revealed a notable rise in the Labour Force Participation Rate, indicating greater engagement of the working-age population in economic activities. The proportion of people aged 10 and above, who are either employed or actively seeking employment, increased from 44.9pc in 2020-21 to 47.7pc in 2024-25.

A sex-disaggregated analysis showed increases in participation rates for both males and females. Male participation rose from 67.9pc to 69.8pc, while female participation increased from 21.4pc to 24.4pc. Rural participation rose from 48.6pc to 52.3pc, and urban participation from 38.8pc to 40.8pc, reflecting broader workforce inclusion across regions.

The labour force, encompassing all persons aged 10 and above who are employed (including own-use producers) or unemployed, increased from 71.8m in 2020-21 to 85.6m in 2024-25, adding roughly 3.5m people per year.

For the first time, the LFS provides estimates of gig-economy labour supply. For primary jobs, 2.9pc of workers are engaged in gig-based work, while for secondary jobs, gig (short-term) work rises to 10.6pc, with women playing a more prominent role — 15pc of women with secondary jobs rely on gig work, compared to 9.8pc of men.

The share of agricultural employment declined from 37.4pc in 2020-21 to 33.1pc in 2024-25, while the services sector grew from 37.2pc to 41.2pc. Industry’s share declined slightly to 24.9pc from 25.4pc.

The report highlighted robust wage growth, with average monthly wages rising from Rs24,000 to Rs39,000. The gender wage gap fell from Rs4,500 per month in 2020-21 to less than Rs2,000 in 2024-25.

The share of own-account workers increased from 35.5pc to 36.1pc, driven largely by women. Female entrepreneurship rose sharply from 19pc in 2020-21 to 25.2pc, while the share of contributing family workers — predominantly unpaid women — declined from 21.1pc to 19pc, reflecting greater female entry into paid labour.

Out of 179.6m working-age individuals in 2024-25, 117.4m are engaged in unpaid domestic and care activities. Among 92m men, 50.7m (55pc) perform unpaid work, while among 87.6m women, 66.7m (76pc) are engaged in unpaid domestic and care responsibilities.

Employees constitute the largest group (43.5pc), followed by own-account workers (36.1pc), contributing family workers (19.1pc), and employers (1.3pc). Nearly half of female workers are contributing family workers (49.7pc), while almost half of male workers are employees (49pc). Between the two surveys, the share of employees rose from 42pc to 43.5pc, and own-account workers from 35.5pc to 36.1pc, while contributing family workers declined from 21.1pc to 19.1pc, and employers from 1.4pc to 1.3pc.

In non-agricultural work, the informal sector continues to dominate, accounting for 72.1pc of jobs — 75.5pc in rural areas and 68.3pc in urban areas. Formal sector work is more common in cities, reaching 31.7pc.

Female participation is higher in the formal sector at 33.7pc, while male participation in the informal sector reaches 73pc. Formal work has grown slightly over time.

Published in Dawn, November 26th, 2025