Unemployment is if a person has ability to do work and is willing to do work but is unable to get job opportunity. There are so many reasons of unemployment but here are a few in this discussion like one reason is in Pakistan education system is defective. There is no educational planning. This system is producing the stuff, which is useless in technical fields of the country. There is lack of technical and vocational institutions. Public attitude towards education is wrong, they want to get their degrees in general and arts subjects. Nobody can set up his own business without technical education.
Similarly, In Pakistan there is lack of every kind of planning. There is a huge difference between the demand and supply for labor. There is absence of such kind of planning to produce doctors, engineers, technical, experts, scientists etc, according to the need of different sectors of the economy. Load shedding of electricity is disturbing economy, especially the industrial sector. Due to less availability and high rates of basic inputs like electricity, gas and oil etc, many industries have been closed and job vanished.
In Pakistan, tax system is not satisfactory. Ratio of direct taxes is more than indirect taxes. Tax dodging is common. Due to less income from the taxes, government cannot start developmental projects. If there is no investment, then from where public would find jobs. On the other side if government takes step to increase indirect taxes, it would also affect investment and ultimately employment level.
Political instability, bad law and order situation, army’s interference, bomb blasts, terrorism, inconsistent economic policies etc are the factors which are disturbing domestic and foreign investment. Due to 9/11 incident, Gulf war and the baseless allegations of terrorism the image of Pakistan has been affected very badly at international level. So in the current scenario Pakistan has limited job opportunities in other countries of the world too. Craziness for work only in government sector, instead of private sector and seasonal firms, industries are also responsible for unemployment.
The negative impact of unemployment is as during a long period of unemployment, workers can lose their skills, causing a loss of human capital. Being unemployed can also reduce the life expectancy of workers by about 7 years. High unemployment can encourage racism as workers fear that outsiders are stealing their jobs. Unemployment also encourages use of drugs by individuals. Proper economic planning, consistent policies of government, better law and order situation, abolishing energy crisis, sincerity with Pakistan and by adopting the Islamic economic system we can not only tackle the issue of unemployment but every economic problem of our country as well.