Pakistani youth face job crisis

Islamabad: A mere seven percent of Pakistan's youth have access to formal technical and vocational training, falling short of the regional average of 22 percent, according to the World Bank. This skill gap costs the nation $31.5 billion annually in lost productivity and unrealized export potential. The World Economic Forum's annual Global Future Leaders meeting in Dubai opened on Tuesday, focusing on the challenge of boosting youth employment in Pakistan amidst the age of artificial intelligence.

Among youth aged 15 to 29, nearly a third are not engaged in education, employment, or training (NEET), with the proportion reaching over half for young women. The issue lies not in the lack of effort from young Pakistanis but in the absence of infrastructure to connect talent to opportunity. This includes structured mentorship, career guidance, industry networks, and accurate labor market signals, which were not established in most parts of the country.

With an 18.3 percent graduate unemployment rate, which surpasses the overall unemployment rate of 14.7 percent across all education levels, Pakistan faces a talent problem. Young Pakistanis who studied diligently are often left waiting, as stated in the country's case study. Instead of marking the end of their academic journey, a university degree has become the starting point of their job search.

According to Gallup Pakistan's analysis of the Pakistan Labour Force Survey 2024-25, graduate unemployment among young Pakistanis aged 20-24 stands at 32.8 percent. Nearly one in three graduates in this age group remains unemployed, not due to a lack of capability, but because the system they graduated into was never designed to accommodate them.