Pakistan’s unemployment rate is rising and is approaching 7 percent, according to the latest Labour Force Survey (LFS) for 2024–25. The government is expected to officially release the report next week. This shows an increase from 6.3 percent recorded in the 2021–22 survey.
According to senior officials, the Pakistan Bureau of Statistics (PBS) shared preliminary LFS findings at a recent “DataFest” conference. Experts, however, raised questions about figures from Islamabad Capital Territory (ICT) and some other regions. The PBS chief statistician has not yet responded to queries.
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The 2021–22 survey had reported a labour force of 71.76 million, with unemployment at 6.3 percent. The overall employment-to-population ratio was 42.1 percent, with a significant gender gap—64.1 percent for men and 19.4 percent for women. Youth (ages 15–24) unemployment was highest at 11.1 percent, particularly among young women. The services sector remained the largest employer.
The 2024–25 survey follows the 19th International Conference of Labour Statisticians (ICLS) definition, updating the older 13th ICLS framework. Under the new classification, work for pay or profit is counted separately from work for own use or unpaid family work. Activities like growing crops for household consumption, raising livestock, or volunteering are now categorized as non-market work.
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This new classification affects labour force participation, employment, and unemployment rates. Many rural women, unpaid family workers, and farmers producing for personal consumption may now be excluded from the labour force unless they are actively seeking market work. Consequently, unemployment rates are likely to rise, and overall employment ratios may appear lower than before.