Myth, Exaggeration or Challenging Reality: Creation of 10 Million Jobs by PTI Government

Abstract

Since Pakistan’s inception unemployment is considered one of the severe factors blamed for creating hindrances in its growth. There are staggeringly 267 million young people from the ages of 15-24 who are unemployed and are not seeking further education or training opportunities. In 2018, the Employment-to-Population ratio dropped below 50%, indicating an alarming trend of significant unemployment in a large population. Another challenge faced is underemployment, where the exploitation of these vulnerable workers is often ignored. Pakistan Tehreek-e-Insaf (PTI) assumed office in August 2018. Other than inheriting issues of corruption, reduced administration, and an ailing economy, it also inherited the mammoth task of tackling the complex issue of creating jobs for continuously growing working-age population. Data for this research has been collected from secondary sources through articles, gazettes, statistical indicators published by Government bodies, PTI manifesto, and other publications as well as digital resources. This research analyzes the labor-market factors of unemployment and underemployment to evaluate the present situation of the economy. It also tries to identify different ideas about developing an ecosystem for job creation by gaining insight through lessons learned from analysis of labor force indicators. Keynes’ Theory of interventional role of Government, for determining a solution of unemployment, is the focal point of this study. This study also gives insight on PTI’s vision of generating 10 million jobs and the corresponding initiatives undertaken in the last two years. PTI government has vowed to turnaround the ailing economy and to generate employment by focusing on four segments i.e., SMEs, Construction, Tourism, Social Services. Although Tourism has shown some potential, but, other sectors also need more policy innovations. Government’s initiatives also lack any structural reforms for underemployed and vulnerable workers. Though PTI government has been in office for last two years but they have been unable to devise a plausible strategy to properly implement its employment issue in the right direction. At present, this goal of 10 million jobs appears to be an exaggerated estimate. PTI government’s initiatives demonstrate that the new jobs creations required at the current speed and scale appears to be an unattainable goal.