Trump tariffs likely to worsen Pakistan's 21-year-high jobless rate
Pakistan is facing the prospect of more job losses as U.S. President Donald Trump's tariff measures threaten to cut exports to the the world's largest economy, experts warn, as a new labor survey shows the South Asian country's unemployment rate hitting its highest level in two decades, leaving key export sectors exposed to further layoffs.
Pakistan's Labor Force Survey 2024-25 released last week shows that the national jobless rate stood at 7.1% -- the highest reading since 2003-2004 when it was at 7.7%. Pakistan's fiscal year starts in July.
The survey shows that the country's total labor force was 83.1 million people, of which 5.9 million were unemployed. Of the jobless, more than three-quarters are educated, including nearly 1 million degree holders.
The survey defines an unemployed person as someone aged 10 or above who has no work and is actively looking for a job.
Naafey Sardar, an assistant professor of economics at U.S.-based St. Olaf College, said that the core reason for the increase in unemployment is a persistent decline in investment, which limits the economy's ability to create productive jobs.
