RASTA: Local Research, Local Solutions: Human Capital & Opportunities, Volume Xiii
ABSTRACT
Youth unemployment is a critical public policy issue that has been extensively examined in developed countries. However, there remains a scarcity of public policy research addressing this problem in the context of developing nations. In a similar vein, the youth unemployment phenomenon is also underresearched in Pakistan. In particular, there is a scarcity of research that examined the causes, nature, and consequences of youth unemployment in Balochistan, Pakistan—therefore this study aims to address this research gap in Balochistan and explore the nature, causes, and consequences of unemployment in Balochistan. In Balochistan, young people have borne a disproportionate burden of limited job opportunities, rising poverty, and insufficient human capital. To address this pressing issue, this study investigates the phenomenon of youth unemployment in Balochistan and offers action-oriented policy recommendations to the government, policymakers, and stakeholders.
Employing a mixed-method research design, the study collected qualitative data through semi-structured interviews with students (n=31), employers (n=8), and key informants (n=10), including public policymakers, representatives of international development agencies, employers, and youth of Balochistan. Additionally, a cross-sectional design was adopted for quantitative analysis, surveying unemployed youth (n=101) and employers (n=38) in the region.
The study findings reveal that the nature of unemployment primarily stems from the scarcity of job opportunities, especially for university graduates, leading to significant disparities between rural and urban employment prospects. Many young individuals from rural areas are compelled to migrate to cities in search of livelihoods, which further strains the urban job market and leaves rural regions with limited employment options. The causes of unemployment in the region encompass a mismatch between career aspirations and available jobs, a lack of employable skills due to the formal education system, cultural pressures prioritising early marriages over career pursuits, limited financial opportunities for entrepreneurship, a substantial government footprint in the job market, and regional disparities in job concentration.
These factors have diverse consequences, including hindering economic growth, exacerbating gender inequalities, fostering social challenges, resulting in the loss of skilled human capital through migration, and fuelling animosity against the state, leading to the insurgency. Addressing youth unemployment in Balochistan necessitates a comprehensive approach that promotes job creation, enhances education and technical skills training, encourages entrepreneurship, implements policy reforms, and challenges cultural norms that hinder workforce participation. By adopting evidence-based strategies, policymakers and stakeholders can effectively tackle this complex problem and pave the way for a brighter economic future for Balochistan.
INTRODUCTION
Research Background
Youth unemployment has emerged as a critical and multifaceted issue in Balochistan, presenting significant challenges to the province’s socioeconomic development and the well-being of its young population (Gö rlich et al., 2013; Olubusoye et al., 2022; PwC, 2022). Being the least populated yet largest province in Pakistan in terms of land area, Balochistan faces unique obstacles, including inadequate job opportunities, structural issues, and barriers hindering young people from actively participating in the labour market and contributing to the economic activities of the province. Thus, this situation not only affects the economic prospects and well-being of the youth and their families but also hampers the overall economic and social progress of the region (Ahmed & Hassan, 2020).
Recognising the pivotal role of young people as human capital, progressive governments have emphasised investments in youth development initiatives and effective labour market policies to enable the youth to contribute to economic activities (Gö rlich et al., 2013). However, compared to developed economies, developing regions like Balochistan face greater challenges in addressing youth unemployment due to limited social protection and inadequate labour market policies. As a result, young people often lack formal institutional or government support, relying mostly on their immediate families and friends (Mitra & Verick, 2013), rendering them vulnerable to engaging in precarious work arrangements.
The United Nations acknowledges the significance of creating decent work opportunities for young people and advocates for addressing the youth unemployment issue as a key priority in its 2030 agenda for sustainable development. Global estimates by the International Labour Organization (ILO) (ILO, 2022) indicate that around 71 million young workers were jobless in 2016, and approximately 156 million young workers in the developing world earned only USD 3.1 per day, which is a major contributing factor to youth poverty in developing countries. Additionally, the ILO’s recent report reveals that the youth labour participation rate declined between 1999 and 2019, with only 497 million out of 1.3 billion young people (aged 15-24) contributing to the labour market. Despite a reduction in global extreme poverty during the same period, youth poverty remains a serious problem in certain regions and countries (ILO, 2020).
Addressing the issue of youth unemployment is intrinsically linked to the United Nations’ Sustainable Development Goals (SDGs), especially SDG-4 (Quality Education and Economic Growth), SDG-5 (Gender Equity), and SDG-8 (Decent Work), all of which have clear implications for fostering youth employment (e.g., ILO, 2022). However, the recent pandemic has exacerbated the youth unemployment problem, particularly impacting young women’s employment prospects and livelihood potential, leading to increased vulnerability and insecurity among young people. Factors such as unreliable employment interrupted learning opportunities, and ongoing mental health and well-being crises have contributed to widening existing inequalities for youth, especially those in developing regions (Barford et al., 2021; ILO, 2020).
In Pakistan, young people continue to face challenges in securing decent work, and youth unemployment is becoming an increasingly significant concern. Coherent public policy measures and consistent attention from successive provincial and federal governments are required to effectively tackle the issues faced by young people (Hou, 2010). The challenges include the difficult transition from school to the labour market, unpaid work commitments linked to voluntary family work or other contingent workforce arrangements, and cultural barriers limiting female work engagement (Hou, 2010). A recent study by Imtiaz et al. (2020) identified political stability, poor investment infrastructure, and rising population as the main contributing factors to youth unemployment in Pakistan. Moreover, the ILO (2020) emphasised the critical challenges faced by youth in Pakistan, particularly females, in educational attainment due to limited access to educational opportunities and inadequate-quality education. To achieve desired employment goals, it is crucial to expand the scope of skills provision and incorporate technical skills with a diverse set of employment skills, competencies, and knowledge base that are universal.
