Karachi [Pakistan]July 13 (ANI): Economic slowdown is weighing on Pakistan’s labor market as some sectors reported layoffs.
“The textile and technology sectors have reported job cuts due to the economic downturn,” Fahad Rauf, head of research at Ismail Iqbal Securities, said last week, according to The Express Tribune.
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“Some Pakistani exporters reported cancellation of export orders (by international buyers) amid global recession fears.”
The layoffs will make finding employment a difficult task for newcomers in the short to medium term, The Express Tribune reported.
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Employment rates are below required levels due to slower economic growth compared to the 6-7% economic expansion needed to accommodate all new job seekers in the country.
The central bank predicted in its latest monetary policy statement released on July 7 that Pakistan’s economy will slow to 3-4% in the fiscal year that started July 1, from 6% growth in the past few months. last two consecutive exercises. (FY21 and FY22), reported The Express Tribune.
“The employment rate has contracted due to the slowdown in the economy,” said Saad Hashemy, executive director of BMA Capital.
The labor market had started to contract due to a sharp rise in global commodity prices amid the Russian-Ukrainian war, with Pakistan heavily reliant on imports to fuel the economy.
According to the Labor Force Survey 2020-21, the overall employment-to-population ratio is 42.1% and this ratio is higher for men (64.1%) than for women (19.4%).
The employment-to-population ratio is defined as the number of employed persons expressed as a percentage of the population of working age (10 years and over).
The comparison by province also shows the same trend. In Punjab, the employment-to-population ratio is 44.2%, followed by Sindh (42.1%), Balochistan (38.6%) and Khyber-Pakhtunkhwa (36%), according to the survey.
Economy survey data suggests that Pakistan has added an average of 2.08 million jobs in each of the past three years, compared to an expected 1.4 million, The Express Tribune reported. (ANI)
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