Unemployment is when a person is searching for a job but could not find one,they are actively searching and are willing to do work.Unemployment rate is a measure of the number of people who are both jobless and looking for a job.Economy faces high unemployment in the period of recession.6% of world’s workforce were without job in 2012 according to ILO report.
Unemployment have a negative impact on the growth of the economy.It is harmful for the economy’s growth because it increases poverty and waste resources.There are three types of unemployment which are cyclical,frictional and structural unemployment.
Structural unemployment is due to lack of skills or wrong area desired for work,when there is advances in technology workers need to acquire new skills inorder to find new job,frictional unemployment is when workers moves from one job to another or to better place inorder to get a better job or quitting old one to get a new job so that short time period is frictional which is always there in the economy whereas cyclical unemployment occurs when there are not enough jobs in the economy for everyone who wants to work in cyclical number of unemployed people are greater then the job vacancies.
Unemployment in Pakistan
Pakistan was emerged with the population of 32.5millions where people were mostly relying on agriculture and living in rural areas,at first Pakistan had poor industrial infrastructure but till end of 1954it started to emerge and offered employment opportunities