Introduction

Economic growth is traditionally associated with job creation, as expanding economies demand a larger workforce. However, the phenomenon of “jobless growth” arises when economic growth fails to translate into substantial employment opportunities. In Pakistan, this paradox has sparked debates about whether it is an anomaly or a persistent reality. Underemployment and unemployment are still major problems in Pakistan, even during times of increasing GDP growth. This analysis delves into the causes, implications, and possible remedies for jobless growth in Pakistan.

Understanding jobless growth

Jobless growth refers to a situation where an economy grows but does not generate sufficient employment opportunities. This disconnect can occur due to various factors, such as automation, structural imbalances, and reliance on sectors that are not labour-intensive.

Is jobless growth a reality in Pakistan?

Recently, Pakistan has experienced episodes of economic growth without a proportional increase in job opportunities. The following factors highlight why jobless growth is a reality for Pakistan:

Pakistan’s economy is dominated by low production sectors, such as agriculture, which employ a significant portion of the population, but its contribution to the GDP is minimal. The........

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