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Graduates face higher unemployment in Pakistan - here’s why
The research paper noted that a large number of individuals end up completing their education in subjects for which little demand exists in the cash-strapped Pakistan.
In crisis-hit Pakistan, the unemployment rate grows in proportion to the level of education. The data collected by Henna Ahsan and Muhammad Jehangir Khan of the Pakistan Institute of Development Economics (PIDE) shows the gap between the rate of overall unemployment and that of graduates which is almost 10% point wide.
According to PIDE economists, the demand and supply sides are the reasons for such a substantial difference between the two rates of unemployment, Dawn reported.
It stated that the number of universities grew manifold in a short span since the University Grant Commission was replaced with the Higher Education Commission in 2002. This resulted in a higher number of enrolments in universities as compared to the rate of enrolment growth at other levels of education.
The research paper said that the ‘misalignment’ between the demand and supply of graduates has led to a higher unemployment rate among recent graduates in Pakistan.
In addition, the paper also noted that a large number of individuals end up completing their education in subjects for which little demand exists in the cash-strapped country, as per Dawn reports.
The data shows that more than 31% of the educated youth are unemployed in Pakistan, while women constitute 51% of the total unemployed population.
“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,” the research paper by PIDE economists read.
In 2020-21, the unemployment rate for graduates increased to 16.1% as compared to 14.9% in 2018-19. The unemployment rate for engineers doubled in two years, from 11% to 23.5%.
Similarly, the unemployment rate for computer science graduates rose from 14.2% to 22.6% in just two years. For agriculture science graduates, the unemployment rate grew from 11.4% to 29.4%.
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First Published:10 Apr 2023, 06:18 AM IST
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