Pakistan’s unemployment rate increased to 7.1 percent during 2025-26, according to the Economic Survey. The number of unemployed people reached nearly 5.9 million nationwide.
Despite the rise in unemployment, total employment increased to 77.2 million. However, workforce growth continued to outpace job creation across the country.
The survey highlighted growing concerns about the gap between population growth and employment opportunities. Experts warn that sustained job creation remains essential for economic stability.
Pakistan’s total population reached 252.09 million after growing by 2.07 percent during 2025. The male population stands at 129.64 million, while females account for 122.45 million.
Youth Population Presents Challenges
Punjab remains the country’s most populous province with 133.36 million residents. Sindh follows with 58.27 million people, while Khyber Pakhtunkhwa and Balochistan have 42.68 million and 15.22 million residents respectively.
The survey identified Pakistan’s young population as a major demographic feature. More than one-quarter of citizens are aged between 15 and 29 years.
Meanwhile, around 57 percent of the population falls within the working-age category. This demographic trend offers significant economic potential if employment opportunities expand.
However, the report warned that limited job growth could increase pressure on the labour market. Rising unemployment among young people remains a key concern for policymakers.
Government Focuses on Skills and Employment
To address these challenges, the government has expanded several youth-focused programmes. These initiatives include skills development, entrepreneurship support and digital access projects.
Officials said laptop distribution schemes and training programmes aim to improve employability. They believe stronger workforce skills can support long-term economic growth.
The survey stressed the importance of human capital development and sustainable job creation. It also called for better alignment between education outcomes and labour market needs.
According to the report, Pakistan’s demographic growth can become an economic advantage. However, success depends on improving workforce absorption and reducing unemployment.
