Islamabad: Drawing on the latest Pakistan Labor Force Survey (LFS) 2024-25 released by the Pakistan Bureau of Statistics (PBS), Gallup Pakistan's Big Data Analysis examines rising unemployment, youth joblessness, and persistent gender disparities in the labor market. While labor force participation has increased in recent years, employment creation has not kept pace - resulting in widening structural pressures.
Pakistan's unemployment rate increased from 6.3% in 2020-21 to 6.9% in 2024-25, continuing a gradual upward trend.
Female unemployment rose from 8.9% to 9.7%, compared to a more modest increase among men (from 5.5% to 5.9%). The gender gap in unemployment now stands at nearly four percentage points.
Among young people aged 15-24, unemployment stands at 12.5%, nearly double the national average. For young women, it exceeds 13%, reflecting structural barriers to entry into paid work.
Urban unemployment is 8.0%, substantially higher than rural unemployment at 6.3%. Urban women face the most severe constraints, with unemployment rates ranging between 17-18%.
The total labor force grew from 71.8 million to 85.6 million between 2020-21 and 2024-25 - an increase of nearly 14 million people - intensifying competition for limited employment opportunities.
Underemployment officially low, but gendered
Underemployment stands at 1.6% nationally, but is higher among women (1.9%), reflecting limited access to adequate working hours and quality employment.
The data reveal a critical imbalance: more Pakistanis are entering the labor market, but the economy is not generating sufficient quality jobs to absorb them. Youth face weak school-to-work transitions and limited apprenticeship ecosystems, while women continue to encounter structural mobility, safety, and occupational barriers.
Urban centers - often seen as engines of opportunity - are experiencing mounting labor market stress due to migration and slow industrial expansion. Meanwhile, rural employment remains heavily concentrated in low-productivity activities.
Trends since 2015 suggest that job creation has slowed relative to population and labor force growth, intensifying competition - especially among young entrants.
Unemployment is more than a statistical measure; it represents untapped human capital and rising economic vulnerability. Persistent youth joblessness risks long-term scarring effects - including informal employment traps, skills erosion, and delayed economic independence.
For women, the combination of high unemployment and sectoral concentration reflects deeper systemic barriers that require targeted policy reform.
Pakistan's labor force is expanding rapidly, but employment growth has not kept pace. Rising unemployment - particularly among youth and women - signals structural mismatches in the economy. Without sustained industrial growth, skill alignment, and gender-inclusive policies, the country risks carrying a growing workforce without pathways to prosperity.
This analysis is based exclusively on the Pakistan Bureau of Statistics (PBS), Labor Force Survey 2024-25, as part of Gallup Pakistan's Big Data Analysis Series.