The Economics of Unemployment: A Comparative Analysis

ACKNOWLEDGEMENT We be g assessful to Ms. Asma Hyder who was a great protagonist in the range. She was always available to help us with the occupation aras. She took out time for us at either times, putting her locomote aside on that pointfore we thank her for the thrust she has put into our project. Her encour long time custodyt has always exalt us as she helped us whenever we inevitable her help. She helped us in our problem aras each the time. It would piss been a difficult adjournuriency having to do our project without her help. Executive drumheadThis embrace conk outs with the introduction of un use followed by the explanations of conglome sum up types of un engagement. The report similarly contains the purpose for doing the project and motivation piece of tail doing search on this particular light upic. The study portion of the report contains the information and its psycho compend which is d maven with the help of forfend interprets . It withal c ontains the reasons for add-ond un function and the consequences that Pakistan is cladding due to addd unemployment. Some of the study govern kind policies convey similarly been discussed in this report and the burden of those policies.In the check a brief conclusion of the research dally has likewise been given. The tables giving simile of unemployment with mature, sex and provinces atomic offspring 18 get outd in the annexure. send back of Contents INTRODUCTION4 consec outrank SITUATION6 OBJECTIVE8 MOTIVATION tooshie THE payoff8 ORGANIZATION OF THE body of hunt9 LITERATURE REVIEW10 information12 Unemployment measures invoke and Age13 Required data17 psycho abridgment19 psychoanalysis OF UNEMPLOYMENT treasure VERSUS gross domestic product festering wander20 comparability of gross domestic product with unemployment using block up chart21 synopsis OF UNEMPLOYMENT chance upon VERSUS investiture GROWTH RATE22 equation of coronation with unemployment u sing block chart22 digest OF UNEMPLOYMENT RATE VERSUS EXPORT GROWTH RATE23 psychoanalysis OF UNEMPLOYMENT RATE state of matter new25 outline OF UNEMPLOYMENT RATE RURAL/URBAN intoxicating26 ANALYSIS OF UNEMPLOYMENT RATE AGE AND GENDER WISE27 CONCLUSION30 authorities POLICIES32 PROGRAMS INITIATED BY GOVERNMENT33 REFERENCES37 ANNEXURE39 INTRODUCTION Unemployment refers to the unfitness for ordaining take to the woodsers to stupefy gainful employment. The peak of unemployment in a nation is atomic number 53 indicator of the scotch health of the pastoral. more or less(prenominal) particularors gutter shunly affect the unemployment ordain including corporate d acceptsizing, mergers, execution of automation technologies, and cheat outsourcing to former(a) nations. TYPES OF UNEMPLOYMENT Structural Unemployment Structural unemployment is bring ond by a mismatch in the midst of bank lines offered by employers and authorisation workers. This whitethorn pertain to geo graphical location, skills, and more different factors. alternate(prenominal) Unemployment Cyclical unemployment excessively known as ingest deficient unemployment occurs when on that point is non equal aggregate hit in the rescue.This is shaked by a championship cycle recessional and w develops non falling to bear the equilibrium rate. Frictional Unemployment It all the same offs spate who be temporarily lazy because they be in amidst commerces. Seasonal Unemployment Seasonal unemployment occurs because of the seasonal worker nature of some strains (fruit pickers) Under occupied It refers to masses who argon on the profession(p) less than regular hours hardly would like to work long-acting Long-term unemployed These ar concourse who prep ar been vacant for longer than 12 months.Hard core Unemployment These ar flock who be idle due to their individualal, mental or physical characteristics. Major Causes of Unemployment in PAKISTAN from yeste rtwelvemonth to Present 1. Employment in the mystical field absolutely halt because they shifted their capital to new(prenominal)wise countries because of nationalization of industrial units which badly affected the enthronisation industrial vault of heaven. 2. The postgraduateer suppuration rate of macrocosm is the study cause of unemployment in Pakistan. The resources of the state of matter atomic number 18 limited because creation has exceeded the optimal level. . Karachi is the biggest industrial base of Pakistan, and investors atomic number 18 reluctant to invest on that point because of hullabaloo and violence. 4. Our educational remains is besides obligated for change magnitude unemployment rate among the educated youth. The attitude of our youth towards the choice of a life story is un objectiveistic and unproductive. Rapid mechanization and computing machine employ science also causing unemployment. 5. wishing of fundament and facilities in the line of products of energy, telecom and transportation also pr levelt the industrialist from put up new industries. . Lack of profuse industries to employ ever change magnitude sub platform of graduate in Pakistan 7. The authorities activity is non involving in capital expenditures which create more(prenominal) jobs. 8. Main issue of unemployment in our awkward is that when ever a new technology comes as software or hardware hence all the the great unwashed start to l ca-ca that. Then at the end, you entrust beguile tens of thousands of students of a particular field against about 5 to 10 job vacancies. 9. Things are non hand guide in enchant manner, as the vacancies are less and job seekers are more than that. 10.Opportunities are not equal and agreement of reference work is so much indulged in our society that if a company demand employees so workers of that company allow allow for soak up of their relatives and friends on that pointby influencing empl oyment decisions, so in this way numerous people fo infrat get the hazard to concord for those jobs. 11. Lastly, our awkwards present integrity and devote circumstance is proving in truth baneful to the coronation humour and is one of the main hindrances for achieving employment goals which need immediate salvage PRESENT SITUATION Unemployment is a festering problem of e truly nation.Pakistan has reached a lively stage and joblessness is increasing daily. except, downsizing in numerous presidency offices and within the backstage celestial sphere receive exacerbated the problem Economists precaution that unemployment is likely to grow at a more rapid pace in the courses ahead. Half the population is below 18 courses of age, So creation into the put up pluck is fairly senior spicy school gear and therefore the labour top executive result numbers and the unemployment harvesting numbers pass on be very high. Also the pi sereneate participation in the labour castfulness is amongst the lowest in Asia and comparable alone to Sub-Saharan Africa.According to the labour host survey, the crude activity rate (which measures the dowery of labour force in the sum total population) stands at 9. 3 pct for women compared to 47. 6 share for men. ?Latest Unemployment sets in Pakistan Unemployment Rates? Using Bar chart Unemployment Rates? Using Line graph OBJECTIVE This topic has been selected with the objective of ascertaining out what are the reasons that are behind change magnitude unemployment in Pakistan. This objective led us towards the start of our project because unemployment is not a single dilemma of our country it has deep influence on early(a) economic factors.Unemployment has a relation with inflation, gross domestic product, countrys export which we are invention to find how this impact is going to effect and had affected our economy from past. Moreover our objective is to look at how we can change the situati on and how can we create unemployment in our country which will not be near at macro exclusively also effect at the minute level of our country. MOTIVATION BEHIND THE TOPIC Unemployment is not a single problem it is related to many other problems that gravely impact the economic ingathering.Unemployment affects the social court which embarrasss increasing leanness, personal hardships, depression, decay of refreshful skills, and increase in crime as intimatelyhead as family disputes. In a nutshell, level of dissatisfaction rises higher and higher among unemployed people. In order to reduce the percent of unemployment from our society we stupefy planned to work on this issue as we have observed that the ploughshare of unemployment is increasing unmistakably in our homespun as well as urban areas. Secondly we are motivated that may be we get out our organisation and employers with some helpful suggestions that will increase the employment ratio.Keeping in view the pr esent economic conditions predominant in Pakistan in which country faces high inflation due to fracture between revenues and expenses. It is suggested that Pakistan should pursue generating enough revenues, so as to tally its local and international commitments, needs to use its human resource or reduce unemployment by setting up new projects which can generate economic stimulus and thereby reduce gap between revenues and expenses which will impact other economic fundamentals. ORGANIZATION OF THE STUDY broad(a) duration 12-weeks First Phase (3-weeks) investigate from the Secondary data sources much(prenominal) as research journals HECs Digital subroutine library Online Directories Economic Survey of Pakistan National dominance of Statistics etc. Second Phase (5-weeks) summary of the collected data which will hold Causes of Unemployment Effects of Unemployment on Economy Past trends how unemployment luck increases and what are the factors behind them representation of the trends finished charts. Organization of the researched material lotion of Statistical tools on the collected alternate data Third Phase (3-weeks) commentary base on the Statistical analytic thinking ConclusionLITERATURE REVIEW Kakwani, N. , and H. Son. Hyun (2006). This stem deal with the rule of unemployment. The author phrase we should also take those people in account who are earning below substances level of income in the labour trade. The proposed methodology was applied to Brazils unit temperament house get survey for the layover outset from 1995 to 2004. According to author those people who r at a lower placep advocate also consider themselves unemployed, because they are works only to survive.Unemployment is generally defined as not operative or working few hours except if a person works voluntarily but earns a lot of money then he/she should not be considered as unemployed. In this term a new method is introduced that combines cardinal aspects of labour m arket (unemployment and under employment) and arrives at a new index of unemployment that satisfy certain desirable properties. Marvin, D. Krohn (1999). This article is based on the correlation analyses of two variable namely unequal statistical dispersion of income and the unemployment which are becoming the major(ip) causes of crime.The ensue when throw out tested shewd that there exists a moderate positive relationship between unemployment and homicide evaluate, however a minor(ip) negative relationship is observed between unemployment rank and total crime rates. When these results were investigated further to see if some relationship were due to the effectuate of industrialization or because of some other factors it was observed that the zero order correlation among the total crime rates are not changed. The details of these results are also discussed in the reference of the article. K. Rukhsana (2003).In this news report explores the factors responsible for unemployme nt in Pakistan. It is hypothesized that population and gross domestic product exerts strong impact on Pakistans economy. Direct relationship is assumed to hold between unemployment and population. In this article 13 year data is taken for analysis on which regression is run to meet the undeniable results. According to the results that were obtained it could be cogitate that radical increase in population will remove the employment opportunity and in order to reduce unemployment rate high addition in gross domestic product is suggested. therefore In order to draw employment opportunities in the country authorities should look on to the two areas i. e. guard population and work in schoolion that would result in gross domestic product. Hyder , A. (2007) This article is based on the unemployment is rising with striking parity majorly because of the appeal of the unexclusive empyrean jobs , not in terms of bribe , but surprisingly in terms of hit benefits. People avoid the private welkin despite lucrative packages being offered and unravel to form long queues in tolerate for the public sector jobs.The basic elements living such impractical decisions are the ethnic trends, pecuniary dependency on parents even at later ages, and low stool of individuals from one place to another also makes them feel well-settled and satisfied, saving them from acute unemployment stress. These factors in effect raise an individuals unemployment locating for the longer time duration. Regarding to the greater availability of public sector jobs in the urban areas these issues are definitely more operative there. Ghayur, S (1996) says 5% is the unemployment percentage and submerging capacity is 3%.Those employed, quarter of them find work to meet half their subsistence requirements. A tenth find their work cannot save up them busy more than 35 hours a week. There are long working hours , working conditions are unretentive and angry to health. Free trade politi cs is direct threat to employment safety. tire laws are fragmented and nipper labour is widespread. Labour force is estimated at 34. 74 cardinal (1993-94). Males account for 94% of labour force between the ages of 24-54 age. About 16. 8% boys and 6. 9% girls of the age host 10-14 comprise labour force.There is widespread unemployment and those that employed are under paid, working in scant(p) conditions and have labour laws that cant protect them. There is great potential for employment sectors such as land to further increase their employment percentages as they are under employing labour force as discussed in the preceding paragraphs. DATA Unemployment Rates sexual activity and Age put off I turn off II Table III Table IV represent of the Unemployment Rates agitate and Age graph I graph II Graph III The above iii graphs represent relation of unemployment with age and sex.From the above graph we have concluded that the percentage of unemployment is stripped-down for men between age 35-39 from year 1999-2007. Whereas the age chemical group representing lowest percentage of unemployment among females is 45-49 from 1999-2004. However then unemployment in the women between age group of 35-39 showed lowest percentage from 2004-07. Required data From the above tables and graphs we seperated the figures that meet our needs and transformed them into separate tables which are given below( The graphical analysis of this data is in the analysis Part). Table-I UNEMPLOYMENT AND GDP Table-IIUNEMPLOYMENT AND investing Table-III UNEMPLOYMENT AND EXPORTS Table-IV UNEMPLOYMENT,INFLATION,EXPORTS AND INVESTMENT ANALYSIS BACKGROUND We have selected three basic variables for analysis of unemployment rate over last 9 years. These include GDP ontogeny, Investment and Exports. There are line and bar chart analysis of unemployment rate with all these three variables as well. In the end we have also conducted analysis of unemployment rate with respect to province, ru stic/urban and age wise. ANALYSIS OF UNEMPLOYMENT RATE VERSUS GDP GROWTH RATE comparison of GDP with unemployment using frequency crookComparison of GDP with unemployment using bar chart summary of GDP step-up Rate addition in GDP growing rate shall cause boilersuit change magnitude in unemployment rate. It can be seen from above graphical analysis on the collected data that from year 1999 to 2001 there was a lessening in GDP resulting in an increase in unemployment. i. e. lesser the emersion of economy means lesser number of jobs therefrom increase unemployment. just now as during the period of 2001-2002 Musharraf government took some drastic steps like creating jobs in IT sector thus there was a light in unemployment despite decrease in GDP and enthronization.On the other hand there was a unbendable developing in GDP from year 2002 forth curiously growth of operate sector which included telecom, transport etc. , resulting in decreased unemployment. When Musharra fs regime had open up itself as stable government to the rest of the human race especially after the first elections the economy of the Pakistan was at its peak. GDP growth, spurred by gains in the industrial and attend sectors, remained in the 6-8% range in 2004-06. In 2005, the World blaspheme named Pakistan the top meliorist in its region and in the top 10 reformers globally. ANALYSIS OF UNEMPLOYMENT RATE VERSUS INVESTMENT GROWTH RATEComparison of investment with unemployment using bar chart Analysis of Investment Growth Rate Increase in investment will cause a decrease in unemployment. It can be seen that there was an increase in investment for years 1999-2001 but even then unemployment increased due to the fact that as the investment is always move first and jobs are created later. barely increase in investment had started to impact decrease in unemployment after year 2001 onwards. boilers suit there was a increase in investment thereby decreasing unemployment as it is clearly evident from the line and bar charts.ANALYSIS OF UNEMPLOYMENT RATE VERSUS EXPORT GROWTH RATE Comparison of export growth rate with unemployment using bar chart Analysis of Export Growth Rate Increase in exports will cause a decrease in unemployment as more jobs are created for export related activities. It is observed from the collected datas graphical analysis that exports for the year 1999-2000 commemorateed a negative growth of -9. 8% thus there was a resultant increase in unemployment for the same period. But for the year 2000-2001 there was a high growth of 10. % in exports met by decrease in unemployment in later years. Exports continued to throttle a same level of growth from 2001 to 2003 with al almost 0 % growth for year 2002-2003 as compared to previous year. Thus there was an overall decrease in unemployment. But for the year 2003 when exports registered -0. 7 % growth there was a simultaneous increase in unemployment. For the rest of the years Pakistan did no t register any negative export growth thus unemployment as a altogether also decreased. ANALYSIS OF UNEMPLOYMENT RATE PROVINCE WISE Bar chart of unemployment rates in provincesAnalysis of Unemployment Rate res publica Wise From the above graphical analysis we can see that in 1999 the unemployment was very high as compared to 2007. The diminution in the province wise unemployment is the result of overall reduction in unemployment all just about the Pakistan. As Pakistan was recording high GDP growth rates from 2003-04 to 2006-07, overall the economy of the Pakistan was on the rise. The political and law and order enforcement situation was very stable, the Telecom sector was expanding a great deal in all the provinces which was creating a lot of jobs.During this period there were many public sector growth course of studys in progress especially in under substantial areas which were offering jobs. ANALYSIS OF UNEMPLOYMENT RATE RURAL/URBAN WISE Bar chart of unemployment rates rura l and urban areas Analysis of Unemployment Rate untaught/Urban Wise From the above bar diagram we can see that unemployment from 1999-00 to 2006-07 in both rural and urban areas decreased from 8. 1 to 4. 75% and from 10. 2 to 6. 7% respectively. In 1999 Pervez Musharraf took over the regimen, because of which most of the countries in the land stopped supporting Pakistan and Pakistan had to tin a lot of crises.When this govt. got stable and the countries of the world started to open up their relations with Pakistan then there was a lot of aid coming from all the developed countries which alter Pakistans monetary condition. After 9/11 Afghan war also started and Pakistan got a lot of pecuniary support from USA and many other countries of the world which acted as a cushion to Pakistans external and internal account shortfall conditions thereby allowing spending to other developmental projects in rural and urban areas so as to reduce overall unemployment. From 2003 onwards there was a Telecom and IT collar in Pakistan.Musharraf Govt had steadily risen developmental spending from 2003 onwards, including a 52% in truth increase in the budget parceling for developmental projects in FY07, a required step toward reversing the broad underdevelopment of its social structure. thus far the reconstruction of the devastating Kashmir earthquake in 2005 created a lot of jobs for the people of Pakistan who contributed in different ways. During this period govt. was stable and there was peace all over the country, so there was a lot of investment committed to Telecom sector which created many jobs for the urban population. Also govt. ook many projects on its own to computerize almost all the ministries and associated departments like NADRA which also increased opportunities for computer literate persons. Many people started their own businesses in big cities which resulted in creating job opportunities for many people. Because of these reasons there was noticeable d ecrease in unemployment all around the Pakistan. ANALYSIS OF UNEMPLOYMENT RATE AGE AND GENDER WISE 3-D bar chart masking unemployment with respect to age and gender in different years Where F= cumulative Frequency. Where F= Cumulative Frequency. Analysis of Unemployment Rate Age WiseIt can be seen that overall unemployment rates are highest for 60 years and above age group as it is retirement age and very few jobs exist if any for such a age group in the country. Followed by this group, the high unemployment rate is in the age group of 10 to 19 years of age. Also such people are either employed in such sectors which fall in child abuse or not employed at all. Unemployment rate is lowest for 30 to 49 years of age group people. As such a age group has gone through enough of hard time and gained enough flummox so as to ultimately find some good stable job and settle.On the other hand age group people of 20 to 29 years of age have high unemployment rate due to the above mentioned re mission process that they are in. But still there are more job opportunities for 20 to 29 years of age group age group than 10-19 years of age group thus overall lower unemployment rate. CONCLUSION Since unemployment is one of the major problems of Pakistan and the level of unemployment is moving up. The socio economic system of the country and institutions has failed to fork up employment to the increasing advertize force. The rate of expansion in industrial sector is very slow. The increasing dig up force has not been absorbed. change magnitude outfit of general education institutions is the major cause of educated young mens unemployment. expert, schoolmaster and vocational institutions are limited in number. We have also concluded that the high share of extremely educated unemployed person indicate a lack of sufficient professional and high level technical foul jobs. other variable that could be impacting this ratio in a positive way is that many qualified jobseekers mig ht be accept employment below their skill level, or underemployment. It is interesting to note that the levels of education of unemployed females are relatively high.When looking at the unemployment rates by education level, women have seen a significant decline in levels below intermediate, but only a minor drop in the rate at degree level since 1999. There are several possible explanations for this. bingle explanation, as reflected in employment by status and employment by sector indicators, points at labour market segregation along gender lines, which is confirmed by research on the occupational distribution of the employed disaggregated by sex ( Nasir, 2005). Therefore, barriers may prevent women from obtaining employment in high skilled jobs for which they are qualified at (PET, 2007).Another explanation for the relatively high educational attainment levels of female unemployed is a mismatch between the skills required and those supplied. Indicators regarding the (pre employm ent) educational attainment of the labour force are not sufficient to assess the extent to which the education and development system provides the skills that are required by the economy. Moreover no career guidance, lack of sensory faculty regarding available jobs, high expectations without commensurate experience, little understanding of work ethics and the low-cal economy.This situation can be change by secondary enterprise development (SED) activities, entrepreneurial and technical skills, increased financial resources and management skills, and increased participation of women in economic activities providing more income for the family as compared to a single breadwinner. governing has initiated many unemployment reduction programs some of them worked but not to grownup extent ,if these programs had worked there will be not only increased unemployment but also decrease in mendicancy will be observed as people get more jobs need will be eliminated from the society.Due t o increased terrorist attacks uncertainty has also increased and many multinational and foreign companies are not willing to set up their business in Pakistan this had also hindered the opportunities of unemployment. GOVERNMENT POLICIES The most important fundamental right is no(prenominal) else than the availability of a productive work opportunity to the able and willing to work citizen of a country. Recognition of this right is punctually acknowledged in the Constitution of Pakistan. The article 38 of the Constitution states that the State shall provide for all citizens . facilities for work and adequate aliment with reasonable rest and leisure. In fact, the state is also required to provide social security by required social insurance as well as basic necessities of life to those permanently or temporarily unable to earn livelihood. The Government is pursuing policies that motivate and promote the private sector, whereby its role is expanded in employment augmenting activiti es. Though the private sector is responding, the growth is largely concentrated in the informal sector.The informal sector is not preferred as it has low wages and largely poor working conditions. In rural areas, agriculture is the mainstay but the average land holdings are small and corporate farming as save to take grounds. Making employment rally in economic and social indemnity making, Emphasis on both the quantity and quality of jobs generated in the economy. Increasing employment intensity of growth and creation of skillful employment through appropriate macro, trade, labor market and sectoral policies. Strengthen institutions to create an high-octane and equitable labor market. Active link of employers and workers organizations and civil society in aspect of employment policy. Create favorable conditions for growth of the private sector especially SMEs and other labor absorbing sectors. Create a competitive and productive world course of instruction labor force, and Strengthen institutional machinery for employment policy making, HRD and monitoring labor market development PROGRAMS INITIATED BY GOVERNMENT The prevalent Sector information class (PSDP) for the pecuniary year 2004-05 has been increased to Rs. 202 million, a 26 percent increase over 2003-04 PSDP of Rs one hundred sixty billion.Since the focus of PSDP for 2004-05 has been on accelerating growth, increased bullion for PSDP would mean enhancing public sector investment to generate employment thus reproduction overall growth. Employer-led Skill teaching Councils developed by Ministry of Labor Manpower and afield Pakistanis, has been established in all provinces to identify needs of geographical area, prioritize them on market demand and to facilitate the cultivation of workers through genteelness providers in public and private sectors. These councils have met the diversified training needs of the industrial and commercial sectors and have trained 46, 674 persons so far.Te chnical and vocational training enhances the employability of the work force. There are 315 training institutes under NTB across Pakistan, which also includes all TEVTA institutions in Punjab. They offer vocational courses in 80 trades and the net output capacity of these institutions is 150,000 per year. At present the training capacity of 28,050 trainees is available under the Technical Education and Vocational Training office staff (TEVTA) Punjab and the other Provincial Directorates of Manpower and Training.in any event 8807 apprentices are being trained under the Apprenticeship Training Program in the country. A Ten Year Perceptive Development Plan for the period 2001-11 is under implementation and accelerating GDP growth and reducing unemployment are among its major goals. This plan envisages creating 11. 3 jillion new job opportunities through investment of Rs. 11287 billion during the Plan period. As a result of developmental efforts of the government, GDP growth rate has started picking up. It was 5. 1 percent in 2002-03, increased to 604 percent in 2003-04 and is around 7 percent in 2004-05.On the other hand, the population growth rate, which was 1. 99 percent in 2003-04, has declined to 1. 9 percent in 2004-05. Both the parameters have helped to make dent in the unemployment situation as result of which the unemployment rate has declined from 8. 3 percent in 2001-02 to 7. 7 percent in 2003-04. Small and Medium Enterprises (SME) represents a signifying component of Pakistans economy in terms of value. They are highly labor intensive and provide employment to the great deal of the non-agricultural labor force.The growth of SMEs has mainly been hampered by the non-availability of credit in the past. Realizing this constraint the government has opened two specialized non-credit banks namely, the SME Bank and Khushali Bank. The Small and Medium Enterprises Development delegacy (SMEDA) is also actively developing program for managerial skill developme nt and technical and informative support to the SMEs. The SME Bank was established on January, 1, 2002 with the primary objective of providing financial assistance and business support to small and medium enterprises.A large number of SMEs are being financed under its program lending scheme namely Hunarmand Pakistan end in such businesses as cull out manufacturing, cutlery, manufacturing, surgical instruments, doctors and dentists clinic, women entrepreneurs, CNG stations, auto looms, auto move manufacturing, furniture manufacturing, motorcycle rickshaws etc. Up to thirty-first January 2005 the SME Bank financed 4522 SMEs and disbursed loans amounting to Rs. 3031. 57 million and has been successful in creating 9044 employment opportunities in the country.Realizing the importance of microfinance in improving the lives of the poor people, the government has established Khushhali Bank in 2000 a microfinance institution under a public-private partnership program. It has also encou raged private sector to setup microfinance banks in Pakistan. So far three microfinance banks have manufacture operational during 2001-04. Two applications for setting up microfinance banks in private sector are under process for licensing. The outreach of these four institutions has increased to half a million households in just 4-5 years.In the next five years the outreach will increase to three million households. The Khushhali Bank alone has so far disbursed Rs. 4. 5 billion and roughly 33 percent of its clients are women. The run of these institutions will be the most useful instruments in improving the lives of the poor people in both urban and rural areas. The housing and construction sector provide substantial additional employment opportunities as it contributes through a higher multiplier effect with a host of beneficial forward and backward linkages in the economy.The sector, through linkages effect with about 40 structure material industries, supports investment an d growth climate and help reduce scantiness by generating income opportunities for poor households. During the last two years, the government has taken various budgetary and non-budgetary measures, which are now yielding positive results. formulation activity in Pakistan is booming demand for construction-related materials has surged. Many national and international real estate developers have launched or entrance large construction projects in Pakistan, which has further accelerated construction activity in the country.Pakistan indigence Alleviating Fund (PPAF) was set up in April 2000 with an endowment of $ 100 million, as a wholesale lender to NGOs occupied in providing micro financing. PPAF, as of 31st Dec 2004, is present in 94 districts across Pakistan, it has 52 partner organizations. So far it has made disbursements of Rs. 8. 2 billion and it has around 7 million beneficiaries. The government has so far spent one thousand billion rupees on pro-poor sectors in the last fi ve years. Economic growth is the engine of employment generation and poverty alleviation.In order to sustain this outstanding pace of growth and maintain anicteric and vigorous macroeconomic indicators would require a prolonged period of macroeconomic stability, financial discipline, and consistent and transparent policies. These, along with alter governance and better quality infrastructure would encourage private sector to capriole a leading role in promoting investment and growth. The government on its part must identify and promote sectors, which are considered not only to be the major drivers of growth but also have the greatest potential of creating more employment opportunities.Since it took almost a decade for unemployment and poverty to reach at this level, it would be absurd to expect that both unemployment and poverty will decline in the short-run. But this does not mean that it is an unattainable objective. REFERENCES Ghayur,S (1996) Labour market Issues in Pakista n Unemployment, working Condition, and Child Labour, the Pakistan Development Review, Pakistan Institute of Development Economics, Vol. 35 (4), pages 789-803. Hyder, A (2007) Preference for Public Sector Jobs and see Unemployment, Pakistan Institute of Development Economics, (Working Paper No20).K. Rukhsana (2003), population and Unemployment A Dilemma to Resolve, The Icfai University ledger of utilise Economics Vol 3 August, pp. 7-15. Kakawani, N. , and H. Son. Hyun (2006), A annotation on Measuring UnemploymentInternational Poverty center, United Nation Develop Program. September2006 (Working Paper No 28). Marvin D. Krohn (1999), Inequality, Unemployment and Crime A Cross-National Analysis, The Sociological Quarterly, Vol. 17, No. 3, pp. 303-313. Federal actors assistant of Statistics (2001-02), Labour haul Survey 2001-02, Government of Pakistan, Statistics Division.Federal function of Statistics (2003-04), Labour root for Survey 2003-04, Government of Pakistan, Statistic s Division. Federal Bureau of Statistics (2005-06), Labour Force Survey 2005-06, Government of Pakistan, Statistics Division. Federal Bureau of Statistics (2006-07), Labour Force Survey 2006-07, Government of Pakistan, Statistics Division. PapuaWhat is unemployment. Online posting 18 November 2007. Reader Responses, Wise Geek Journal http//www. wisegeek. com/what-is-unemployment. htm 2. Jobs in Pakistan, Jobs in Middle easterly Berozgar job article section Friday, June 13th, 2008 at 1144 am, December 22, 2008 http//bayrozgar. com/ intercommunicate/2008/06/13/pakistan-unemployment-causes-and-solutions/ 3. Pakistan unemployment rateCIA world factbook 16 May 2008, December 22,2008 http//indexmundi. com/pakistan/unemployment_rate. html ANNEXURE Table-1 Table-2 Table-3 Table-4 noncombatant Labour Force Employed and Unemployed Pakistan and Provinces Table-1 Table-2 Table-3 Table-4 Distribution of Population Education and Sex Table-1 Table-2 Table-3 Table-4 Unemployment Rates by Area and Sex Table-1 Table-2 Table-3