Although there are many causes of this constant issue of unemployment, a variety of the most basic of the problems are following:
3.1 Rapid Population Growth:
Pakistan, for 2018, was on 49th position on the global birth rate ranking with birth rate of 28.25 births per 1000. This rapid population growth plays a big role in the increment of unemployment rate. There are several reasons for population growth; lack of education regarding contraception, lack of women empowerment and women education, poverty, preference to possess more sons, and many other constraints are there. These are the important threats of increase and consequently a superb explanation for unemployment.
3.2 Lack of education:
Another Major cause of unemployment is lack of education or skills for employment in the youth of Pakistan. Pakistani students have degrees but lack skills which causes unemployment. This happens when the qualifications of an individual aren't sufficient to satisfy his job responsibilities. If the education system of a country is not directed towards the labor market then a mismatch occurs thus resulting in structural unemployment. These individuals face difficulties in learning new skills applicable for the specified job e.g., computer skills, management and communication. because the need for skilled and educated workers increase for employers, the job opportunities for those without a university education decrease in higher percentage resulting in higher.
3.3 Impact of inflation:
Inflation can also affect unemployment rate, when the prices of products increases The rising cost makes it hard for the companies to pay the usual optimum salary for the employees or even the minimum wage in some cases. Causing the employee to leave the job to find other job causing unemployment.
3.4 Constant recession:
The current economic crisis of Pakistan is alarming because of this there are many consequences we have to face for last few years. The worldwide recession has affected Pakistan's economy but unfortunately, we have not taken any potential measures to control the crisis. IMF has approved a loan of $6 Billion to support Pakistan's financial condition, which can help in sustainable growth within the country if the policy makers make intellectual policies. It can also help in decreasing unemployment rate of the country
3.5 Culture of Nepotism:
The culture of Nepotism can be observed everywhere in Pakistan, regardless of the very fact, whether you're trying to find employment within the private sector or public sector. The culture of Nepotism exists there. Such social evils also are one of the main reasons for unemployment. People, who are hard-working and are skilled, don't find an honest job because they don't have any reference.
3.6 Lack of Industries:
Right Now, Pakistan is facing a serious financial crisis which is leading to a rapid increase of dollar rate due to the insufficient balance of payments, Pakistan's stock market is also facing a downfall. The demand for labor has decreased exponentially, thanks to this, the economic sector is accommodating only a little number of individuals, increasing unemployment rate. On the opposite side, the insufficient growth within the industrial sector is faced. The causes behind this are a shortage of capital and investment within the country to create new industries. Less collection of taxes also hinders the govt of Pakistan to determine new factories and industries within the country, which also causes the unemployment rate to increase.