Labour Market Dynamics in Pakistan: Evidence from the Longitudinal Data

Publication Year : 2002

The bulk of research on labour market conditions in Pakistan has concentrated on the economic activity rate, the number of employed persons, or the unemployment rate at a particular point in time. These stock measures of labour market situation are useful from a policy viewpoint as they give a broad indication of the dimension of the problem. For example, the recent labour force surveys show an increase in the level of open unemployment from 5.9 percent in 1997-98 to 7.8 percent in 1999-2000 [Pakistan (2001)]. There is also an emerging consensus that during the 1990s poverty has increased at the national as well as for rural and urban areas of the country [Qureshi and Arif (2001)]. Labour market is considered as the main route for establishing the link between macro policies, the resulting GDP growth and poverty alleviation [Rahman (2002)]. Interim Poverty Reduction Strategy Paper (IPRSP) and other development plans have suggested various targets of employment creation for poverty reduction.