ISLAMABAD: Pakistan’s unemployed population has jumped by 31 per cent over the past four years, rising from 4.5 million in 2020-21 to 5.9m in 2024-25, according to the latest Labour Force Survey released on Tuesday by the Ministry of Planning and Development. The sharp increase — amounting to 1.4m additional jobless individuals — underscores mounting stress in the labour market amid slow economic recovery and limited job creation.
The rise in unemployment cut across all age brackets, genders, and regions. Youth joblessness grew significantly: unemployment among those aged 15-24 climbed from 11.1pc to 12.6pc, while the 15-29 age group saw a rise from 10.3pc to 11.5pc. Overall unemployment reached 6.9pc, up from 6.3pc in the previous survey.
Women remained disproportionately affected. Female unemployment rose sharply from 8.9pc to 9.7pc, compared to a more modest increase for men — from 5.5pc to 5.9pc. Urban unemployment edged up from 7.3pc to 8pc, while rural areas saw an increase from 5.8pc to 6.3pc.
The Pakistan Bureau of Statistics conducted the 37th round of the survey electronically across the provinces. Despite rising joblessness, the Labour Force Participation Rate increased from 44.9pc to 47.7pc, indicating more Pakistanis actively entering the job market. Participation rose for both genders: male participation increased from 67.9pc to 69.8pc, while female participation jumped from 21.4pc to 24.4pc — a rare uptick reflecting broader involvement of women in income-generating roles.
A sex-disaggregated analysis showed increases in participation rates for both males and females.https://t.co/m1aem2CxHy
— Dawn Business (@dawn_business) November 26, 2025
A key finding of the report was the expansion of the gig economy. About 2.9pc of primary jobs and 10.6pc of secondary jobs now fall under gig work. Women play a larger role in gig-based secondary employment — 15pc, compared to 9.8pc for men — highlighting shifting work patterns amid economic uncertainty.
Structural changes in employment were also evident. Agricultural employment dropped from 37.4pc to 33.1pc, while the services sector expanded from 37.2pc to 41.2pc. Industry saw a marginal decline. Wages, however, showed substantial improvement: average monthly wages increased from Rs24,000 to Rs39,000, narrowing the gender wage gap to under Rs2,000.
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Female entrepreneurship rose sharply from 19pc to 25.2pc, while the share of unpaid contributing family workers—mostly women—fell from 21.1pc to 19pc, signalling growing female entry into paid labour. Yet challenges persist: nearly 117m Pakistanis aged 10 and above remain engaged in unpaid domestic or care work, including 76pc of all women.
Informality continues to dominate, with 72.1pc of non-agricultural jobs in the informal sector. Formal work remains more prevalent in urban areas and among women. The report warns that without substantial job creation, especially for the youth, Pakistan’s labour market stress may worsen in the coming years.
