Pakistan's job market starts shrinking

Pakistan's job market has started shrinking amid economic slowdown, as some sectors have reported layoffs while for new comers finding jobs can become a tough task in the short to medium term, reports The Express Tribune.

"Textile and technology sectors have reported job cuts amid economic slowdown," Fahad Rauf, Head of Research at Ismail Iqbal Securities, said last week.

"Some Pakistani exporters have reported cancellation of export orders (by international buyers) in the backdrop of global recession fears."

The rate of employment improved and the rate of unemployment decreased in the past three years (from 2018-19 to 2020-21). The rates, however, still stand below the required levels due to slower economic growth compared to the 6-7% economic expansion required to accommodate all new job-seekers in the country.

The central bank has anticipated in its latest monetary policy statement unveiled on July 7, 2022 that Pakistan's economy will slow down to 3-4% in the fiscal year that started on July 1 compared to 6% growth in the past two consecutive fiscal years (FY21 and FY22).

"The rate of employment has contracted due to slowdown in the economy," said BMA Capital Executive Director Saad Hashemy.

The job market has started shrinking due to a sharp increase in global commodity prices amid the Russia-Ukraine war as Pakistan heavily relies on imports to fuel the economy.

He, however, anticipated that the fast drop in global commodity prices in recent days would help the resilient domestic economy to recover and reopen opportunities for the new comers, who would be able to find suitable jobs.

The crude oil (West Texas Intermediate) price fell to $95 per barrel in the international market on Tuesday compared to around $120 per barrel about a month ago.