Short-Term Employment Functions in Manufacturing Industries: An Empirical Analysis for Pakistan

Khalid Hameed Sheikh, Zafar Iqbal

Abstract


The most challenging issue facing Pakistan today is the high
rate of growth of population and labour force which is a major obstacle
to the development of the country. The current problem of unemployment
is becoming serious and is deeply rooted in the economic, social and
political conditions of the economy. The consequences of rapid
industrialisation on employment generation in Pakistan has also been
very disappointing. The manufacturing sector in Pakistan has grown at an
average annual rate of around 6.0 percent during the 1970s and 8.7
percent during the 1980s. Manufacturing output has risen from 16.5
percent of the GDP during the 1970s to 19.1 percent during the 1980s.
The manufacturing sector has failed to generate sufficient employment
for new entrants in the labour force. Over a period of 18 years from
1969-70 to 1986-87, only 14.0 percent of the total labour force could
get employment in the manufacturing sector. A low creation of employment
opportunities is also manifest in the fact that the growth rate of
employment in the manufacturing sector has declined considerably from
2.4 percent during the 1970s to 1.0 percent during the 1980s.

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DOI: https://doi.org/10.30541/v31i4IIpp.1267-1277

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