Running head: GLOBAL UNEMPLOYMENT 1

Global Unemployment:
Strategies and Solutions to the Problem of Unemployment

Submitted By:

Aleena Irfan
Amna Nasser
Mahnoor Riaz
Humaira Amir
Talha Omer Butt

BBA IV Section A

Submitted to:

Sir Shariq Ghaznavi Mahmood

GLOBAL UNEMPLOYMENT 2

Contents
Contribution:....................................................................................................................................3

Introduction......................................................................................................................................4

1.1 Overview....................................................................................................................................4

1.2 Objectives...................................................................................................................................5

1.3 Significance of the topic.............................................................................................................6

Literature Review............................................................................................................................7

2.1 Unemployment in the Global Context........................................................................................7

2.2 Unemployment due to Covid-19...............................................................................................10

2.2 Unemployment in Pakistan......................................................................................................12

2.3 Unemployment Laws around the Globe...................................................................................15

2.4 Laws in Pakistan.......................................................................................................................16

2.5 Countries that offer extensive unemployment benefits............................................................17

Conclusion and Solutions..............................................................................................................18

Bibliography...................................................................................................................................22

Appendix.........................................................................................................................................27
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Contribution:

Talha Omer Butt Introduction

Amna Nasser Unemployment in the Global Context

Mahnoor Riaz Unemployment due to COVID-19

Humaira Amir Unemployment in Pakistan and Laws on Unemployment

Aleena Irfan Conclusion and Solutions

GLOBAL UNEMPLOYMENT 4

Introduction

1.1 Overview

Unemployment in a country refers to that part of population who are eligible to work but

do not have work. The concept of unemployment is not new and it has always been there.

Every country whether it be developing country or a developed country has had to face this

issue on a daily basis. The only difference is that the level of unemployment in the

developing countries is higher as compared to developed countries. Unemployment can be of

several types. Economists have categorized these into 4 main types. The first one is frictional

unemployment which basically is the type of unemployment in which an individual who is

eligible to work is unemployed for the reason that he/she is finding another job, the second

one is structural unemployment which is when individuals are laid off due to a particular

sector or department going in decline, the third is cyclical unemployment that occurs when

there is an economic downturn like recession (Campa, 2017). Lastly, there is technological

unemployment that comes to play when an economy or industry decides to replace humans

with machines in order to reduce cost and increase efficiency. All these types collectively

contribute to the rising unemployment in the economy. Man power is the biggest resource

which a country or an economy has and it is very important that government works hard to

make efficient use of this resource. Moreover, unemployment also leads to different

macroeconomic problems like poverty. In developing countries this is a very serious issue

because if the labor class gets unemployed for a long period, they do not have the finances to

satisfy their basic necessities due to the high level of inflation which not only brings them

closer to the poverty line but in countries like Pakistan, India, Bangladesh these individuals

are even forced to take their own lives or indulge in criminal activities like robbery,

kidnapping etc.
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At present about 3.5 billion people, which equates to half the population, fall under 25

years of age and among this, 1.2 billion are those who fall between the age bracket of 15 to

24, also known as “youth” (Councils, 2013). It is very important to understand that in order

to cater to this problem the young blood or this youth needs to be trained and educated so that

they can actively take part in the labor force and contribute to the society, to their respective

country and the globe. With the different level of obstacles for the upcoming youths

regarding jobs and employment many of the youngsters who have achieved a high level of

education have also lost hope of securing a good job and have even stopped searching for

jobs. In 2012 an International Labor Organization conference was held in Geneva that

discussed that more than 6 million of the youths globally have given up looking for jobs

(Choudhry, Marelli & Signorelli, 2012). Many world leaders have on record stated that youth

unemployment is like a cancer in the society. (Hanna, 2014).

Governments around the globe need to come up with strategies which would help to

reduce unemployment because unemployment which is already a big concern plays a major

role in promoting other economic concerns like poverty. The laws need to be updated

keeping in mind the current scenarios like rising population, dependence on technology and

many other. Laws promoting employment and employment benefits should be encouraged

and businesses should be given incentives of adapting such laws. Apart from that government

should take some initiative themselves by giving and raising the education level and should

also carry out training programs which would help in making employees skillful and

efficient.

1.2 Objectives

 Identifying the challenges faced by unemployment globally

 Pakistan’s battle with unemployment

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 Impact of COVID-19

 Finding solutions for some of the most prevailing problems

1.3 Significance of the topic

There is a lot of significance of this topic in today’s day and age, with the rising

population level globally countries are facing difficulties in creating new job opportunities to

facilitate every individual. The unemployment rate is increasing every year and with the

rising inflation rate due to limited resources being available also increases the no of

individuals getting close to poverty line. Moreover, the high unemployment rate also widens

the income distribution level, with the rich getting richer and poor getting poorer. It is very

important that government and international bodies work towards finding a solution to cater

to all the solutions for the rising problems which lead to rise in unemployment. Solving this

issue is very important specially in the developing economies because it is the root cause of a

lot of macroeconomic issues so governments need to work with the public and private sector

closely to find ways of getting the unemployed individuals some work so that they can satisfy

their needs. The significance for this topic has also increased during these Covid times

because the pandemic has led to a lot of individuals being laid off due to businesses running

in losses. There needs to be better management done in this scenario and we need to be

prepared on how to limit the effects of current and future pandemics on employment because

unemployment can also be as life threatening as these viruses.

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Literature Review

2.1 Unemployment in the Global Context

Unemployment has majorly affected the young people across the globe. In 2012, 4 million

people were jobless but now approximately 190 million people are unemployed. Young generation are

most deeply affected (Mike, 2021). According to International Labor Office (ILO), the global youth

unemployment rate is estimated to be 13.6% (shown in figure 1) which is three times higher as that for

adults which is only 5.4% (shown in figure 2). It has been observed that young people under the age of

25 are less likely to find jobs as compared to adults. (World Employment and Social Outlook , 2018).

Many factors lead to youth unemployment out of which poor macroeconomic performance is one

of the major reason. Lack of economic growth greatly affects everyone in the economy and especially

the younger people (Ryan, 2001). Other important reason for youth unemployment is the lack of job

creation. If the economy of a country is unable to create new jobs then youth will be most affected.

Other reasons are unwanted working conditions, being unexperienced, skills mismatch, lack of

entrepreneurship and life skills education, lack of information about the labor market, lack of access to

capital etc.

Usually, young people have lower job protection. This is because they do not have much job-

specific experience and the companies invest less time and money on them so they incur less loss when

laying them off as compared to an adult experienced worker (Montenegro, 2007). Moreover, young

employees are more likely to resign from their post because they are eager to explore different

opportunities before they settle at one job. This is because not many people are dependent on them for

support, so they tend to discover their options or turn to get higher education (O'Higgins, 2001).

Another global factor that affects youth unemployment is the mismatch of skills acquired by the

young people who are graduating from educational institutions and the skills required by the employers.
 GLOBAL UNEMPLOYMENT 8

There are many youngsters who have graduated and are searching for jobs but the skillset that

organizations require now a days are not being taught to the students in their institutions. So, the young

people face difficulties in adjusting from school-to-work transition and organizations are not able to find

the suitable candidates for their positions. According to McKinsey Center for Government, only 55% of

the youth was able to find jobs that were relevant to their field of study. This shows that there is lack of

collaboration between the educational institutes and the employers. According to a study, 40% of the

employers who were surveyed stated that the main reason for entry level vacancies is the lack of skills

(Mourshed, Farrell, & Barton, 2013). In another research of 40,000 employers from 39 countries

discovered that one out of three employers were facing difficulty in selecting the suitable qualified staff

for their companies. Eventually, the problematic mismatch is that the youth is looking for job

opportunities but are unable to find them, while the employers want to recruit qualified people but

cannot find them. The root problem is the lack of communication between the employers, educators and

the young people. A research concluded that only 15% of the employers communicate with the

educational institutes on monthly basis (Hanna, 2014). Moreover, there is evidence that the young

people are not only graduating with skills that are not required by the employer but they also do not have

any practical skills. According to a survey conducted by McKinsey, 58% of the youngsters believe that

doing practical work is an effective way of learning and getting training, however only 24% of the

graduates got the chance to do so. On the other hand, some graduates who have advanced degree feel as

if they are overqualified for their respective job and many young people are underemployed, meaning

that they are not doing the work that makes full use of their skills and abilities and that they are not

allowed to work to their full potential (Peace Child International, 2015).

Another factor that causes youth unemployment is the lack of knowledge regarding the career

and the vast job opportunities amongst the young generation. Majority of the youth is unaware regarding
 GLOBAL UNEMPLOYMENT 9

the career choices and as a result they make undirected decisions after graduating. According to a survey

conducted by McKinsey, 60% of the youth are uninformed about the job openings or wages related to

various professions, even including the one which they have selected for themselves (Hanna, 2014).

Young people believe that they have awareness about the workforce options but in reality they are

misguided. And due to the lack of accurate information, student end up choosing their courses blindly

without knowing if there will be demand for their skill or not when they graduate. Hence, it is important

that educational institutions provide their students with career counselling.

Furthermore, lack of entrepreneurial education is another factor that may lead to youth

unemployment. The school curriculums are overlooking entrepreneurial, vocational and employability

training and instead only focusing on the traditional academics. There are young people who want to

start their own business face more roadblocks as compared to adults in terms of capital and lack of

training which makes it difficult for them to move forward. The main obstacle is the lack of access to

micro-credit for youths. Most of the companies are reluctant to invest in young entrepreneurs’ ideas

because of lack of collateral and experience. They want to start their own venture but they struggle to

find affordable loans or loans in general (Hire the Youth, 2017). Young entrepreneurs have promising

ideas but they fail to implement it due to lack of necessary skills that are required to properly carry out

the venture. Hence, it is essential to launch programs that helps young people in developing a business

plan and reduce their costs. These include mentor support, business counselling, access to working

space, skills training programs or business expansion support (Chigunta, 2002).

Other than students, there are young people who are not getting education, employment or

training and hence they do not have the required skills for work. In non-developing and developing

nations, there are large number of youngsters who currently do not have any skill that would prove to be

useful in the workforce. In fact, 11% of the youths globally are illiterate and approximately 74 million
 GLOBAL UNEMPLOYMENT 10

adolescents (aging from 10 to 19 years) do not even go to schools (Hanna, 2014). Young people who are

drop out of schools at an early stage are more likely to be unemployed, face poverty and get involved

into crimes and other dangerous activities as compared to those who at least graduate from secondary

school. It is a huge challenge to provide opportunities to young people who have dropped out of school

or have never attended school to acquire basic skills to increase employability (Fact Sheet: Youth and

Education, 2013).

2.2 Unemployment due to Covid-19

The COVID-19 pandemic has had devastating effects on the psychological, economic, and social well-

being of individuals and communities throughout the world. This crisis has risked the health, jobs and

incomes of millions of people all around the globe. The lockdown measures taken by all the countries

of the world resulted in a sharp and unprecedented fall in the employment rate (Behav, 2020). In a

recent research paper (Pinsker, 2020), it highlights two classes that have been affected by this

pandemic. One, who had higher levels of education and stable jobs where telework was possible. These

kinds of individuals had the possibility of working from home and could cope up well with the

situation. The other set of people were the rest of the working public who could not work from home

and were putting themselves and their families at risk every day. Either they had been fired from their

jobs or downsized, so they are in constant survival mode in hope of this pandemic to end soon.

In 2020, almost 8.8% of the global working hours were reduced to the fourth quarter of 2019,

which is equivalent to 255 million full-time jobs. From a global perspective, the sudden decline in

working hours resulted in both employment losses and a decrease in working hours for those who

remained employed. The unprecedented global employment losses in 2020 were of 114 million jobs

relative to 2019. In comparison with males and females, employment losses were higher for women,

around 5% than for men and for the young workers it was 8.7% than of older workers. Furthermore,
 GLOBAL UNEMPLOYMENT 11

the global unemployment rate was risen by 1.1% points to 6.5%, increasing by 33 million

(Organization, 2021).

Furthermore, the lower-skilled workers were also hit hard because of this pandemic, in wealthier

and developing countries. There was a massive increase in lay-offs in various sectors including

tourism, retail, leisure, hospitality, recreation and transportation services. This trend in increase in

unemployment rate is expected to continue even with the release of vaccines (Scaffidi, 2020). During

2020, the rate of unemployment for lower-middle income countries stood at 11.3% which was well

above the global average of 8.8% (Organization, 2021).

Moreover, reflecting on the impact of the COVID-19, the youth were already at risk within the

workforce prior to this pandemic. Due to this global economic crisis, increasing trend in

unemployment, higher competition among workers and the high growth in digitalization this may

result in dislocation of young workers from the labor marker for some time (Organization, 2021). The

young workers are facing a more difficult time coping with this pandemic because even though the

experienced workers are getting laid off, they still know how to cope with difficult business

conditions. Whereas, for the youth the tight economic situation can make it harder to find resources

and financing for themselves. This crisis has changed the youth’s priorities, their lifestyle and

meaning for work completely (Scali, 2018)

The young workers were hit the most by this crisis in 2020, across all the regions and country

income groups. There was a loss in employment rate of 8.7% as opposed to 3.7% in adults. But,

outside the high-income countries, the jobless young people or the individuals who were just starting

to join the labor market, did not generally move into the category of unemployment rather they were

dropped out of the labor force. This is also another reason why the global number of unemployed

young people did not increase much. This pandemic has aggravated the youth’s disconnection from
 GLOBAL UNEMPLOYMENT 12

the labor market highlighting the all too real risk of a lost generation (Organization, 2021).

Moreover, women all around the world across all regions have been affected by employment loss

to a greater extent than men. The employment loss for women stands at 5% in 2020 whereas, it was

3.9% for men. The loss is larger for men in absolute numbers, around 80 million than for women

around 64 million, reason being, the long-standing gender gap in labor force participation rates.

Women are more likely to become economically inactive as opposed to men, which will lead to the

drop out of the labor force during this crisis (Organization, 2021).

Furthermore, due to the global financial crisis, the COVID-19 has affected the labor markets

worldwide and will continue to do so. This has resulted in greater job losses and unemployment hikes

in all places of the world. This also includes the lower- and middle-income countries, which were not

hit as hard during the global financial crisis. Whereas, in high-income countries, the increase in the

unemployment rate between 2019 and 2020 was approximately 2% (Organization, 2021).

However, unemployment numbers reflect only a small proportion of the jobs lost in the COVID-

19 pandemic. A lot of the individuals who wished to have a job resulted in being inactive because they

were unable to find any opportunity to search for a job successfully. Many were also restricted due to

the various lockdowns in many regions. Also, the rate of inactive individuals varied in wealthier

countries and the developing countries (Organization, 2021).

2.2 Unemployment in Pakistan

 Pakistan has the 9th largest labour force in the world which is increasing every year.
 It is a hard fact that unemployment has become the number one problem of Pakistan. 

 The number of unemployed people in the country has been estimated to reach 6.65 million during
the fiscal year 2020-21, compared to 5.80m of the outgoing financial year.
 GLOBAL UNEMPLOYMENT 13

 The number of employed workers will reach 62.91m in 2020-21 from 62.18m in 2019-20.

 Pakistan is experiencing the phenomenon of unemployed educated people, particularly jobless

graduates.

 The unemployment rate among degree-holders is almost three times higher than the other overall
unemployed people

  It is a fact that we hear from our friends or relatives who do not get a job even after graduation.

Unemployment has become a matter of serious concern in Pakistan that is making tons of

economic issues however these issues can often be resolved with correct utilization of resources. The

youth unemployment has risen quite significantly in many countries due their incompetent academic

and economical strategies. Pakistan is also among the ones who is facing the same issue, especially

among youths. Figure 4 and 5 proves this fact that there is high unemployment in our youth as

compare to the overall unemployment (Statista, 2021). As policymakers don’t seem to be coming up

with realistic measures in decreasing the problem of unemployment so the youth unemployment has

been a giant issue within the society. The researchers thus keep digging for the
 GLOBAL UNEMPLOYMENT 14

most prominent reasons of unemployment so they could design the possible solutions and strategies to

overcome it (Imtiaz et al., 2020).

Pakistan’s current scenario of unemployment is greatly due to unfavorable consequences of

political uncertainty. Despite diverse implausible possessions, Pakistan’s economic growth is very

stagnant owing to the country’s forever present political instability. In Pakistan, the politics has the

power to overshadow the economic decisions thus the political instability tremendously causing the

economic process to slow down (Taha, 2012). Unemployment isn’t simply a social mean but its

outcomes are wide-spread. It brings discontentment and helplessness among the young and not only

this but it also additionally promotes the involvement of youth in negative acts like terrorism, robbery,

and a long wave of other crimes. Politically it makes societies infuriated. Political uncertainty has the

potential to have direct impact on unemployment and could be a reason for its elevation. Actually,

political instability produces condescending vagueness which can damage the labor expertise and

therefore economies end up experiencing high unemployment rates (Lucifora and Moriconi, 2012).

Political instability is a cause that is negatively affecting the domestic and foreign investment and the

investors to lose interest in Pakistani business market due to political stability not present. According

to Azeng and Yogo (2013), youth unemployment will possibly increase due to political instability of a

country.

Other reason of the problem of unemployment is shortage of investments in Pakistan. According

to Shah and Zahir (2003), if there would be no investments in the businesses, it would mean there is

no production in the country thus no jobs for the citizens. Foreign direct investment (FDI) is crucial to

every country’s’ economic prosperity (Khan et al., 2018). It doesn’t solely offer vacancies however it

also plays a vital role in economic stability (Sarwar, 2008). Yabuuchi (1999) emphasizes on

considering the impact of FDI on unemployment in the urban areas and on the state
 GLOBAL UNEMPLOYMENT 15

welfare. To attract the investors, the government of Pakistan introduced multiple investment

incentives in the form of tax trim and infrastructural necessities (Shah & Zahir, 2003). Investment is

vital for the country’s economic progress however in Pakistan, the quantity of investment inflows is

not such a lot enticing within the last five years (Ahmed, 2018).

Every country’s economy is reliant on three kind of sectors that are agriculture, industrial and

service industry. The growth of each sector is interlinked to each other. Pakistan is an economy who

heavily depends on agriculture thus agricultural boom is very crucial to us. Although agriculture

sector is the heart of Pakistan’s economy but still it is going through many hardships in the form of

lack of technology, socio-economic issues, some natural crisis, and also many monetary challenges

(Khan and Bae, 2017). According to Khan (2011), this backwardness of our agriculture sector is the

major reason to cause the unemployment problem in Pakistan. In Pakistan approximately 47% of

public is employed in this sector (ILO, 2004) and this segment contributes 20.9% of our GDP, directly

or indirectly. There two main factors that leads to unemployment in agriculture sector. First is the

replacement of technology and equipment’s with manual labor. Secondly, absence of good quality

fertilizers, pesticides, no laws or reforms regarding land, high quality seeds and the less education

available regarding agriculture. Because of all these facets, the agriculture sector is lagging behind

thus also pushing up the unemployment rate in Pakistan.

As per Worldometers (2020), the number of people living in Pakistan is approximately 201 million

making it the sixth most crowded country on the planet. Absence of schooling and education as a

basic life need makes individuals of Pakistan ignorant of the economic issues which prevail in

consequence to excessive population and increased birth rate. There are various effects of

overpopulation, for instance, low yield and development in the agricultural sector, increased

unemployment rates, and low per capita pay (Imtiaz, 2014). In Pakistan, the education framework
 GLOBAL UNEMPLOYMENT 16

isn't very strong and reliable which causes the more uncertainty and illiteracy among the population.

A research by Kalim (2003) based on factor which effect unemployment in the youth, she examined

that in Pakistan increased population causes unemployment. Overpopulation is destroying the

employment opportunities in Pakistan. For the people of Pakistan, the increasing number of

populations is now posing a major threat to employment opportunities leaving them in a hostile

condition.

2.3 Unemployment Laws around the Globe

International Labor Organization was formed in 1919 and out of 193 countries in the world,

187 are part of this organization. ILO has some basic laws and regulations for the employed and

unemployed people around the globe. If we focus on the unemployment laws around the globe, the

most prominent one is the Unemployment Insurance (UI). It was established in 1935 in the States.

Over the years many countries have implemented this scheme in their countries to protect the

unemployed. However, there are some set of regulations that need to be met to be eligible for UI plan.

It is a type of state provided benefit for the unemployed depending on the reason of their

unemployment. In the United States the UI benefits lasts for up to 26 weeks, however, it depends on

the state in which the person resides in. the UI coverage rates are more in advanced countries as

compare to the emerging economies. Austria, Belgium, Denmark, Finland, France, Germany, Iceland,

Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden and Switzerland are amongst those

countries who provide UI the most generously to their citizens. Fewer level of unemployed people of

Australia, Canada, Ireland, Japan, New Zealand, the United Kingdom and the United States receive

the UI benefit as compare to the countries mentioned before (ILO, 2000).

Most developed countries also have a second plan of protection for their employees mainly

called employment assistance programs. Many of the OECD countries have reduced there
 GLOBAL UNEMPLOYMENT 17

unemployment benefits since 1990’s by narrowing the admissibility criteria along with reduction in

period of benefits and replacement rates. In many western countries, the benefits come with strings

attached. To avail the benefits, the plan holder should participate in training and also keep searching

for a job intensively. Economies overlook these conditions by never ending labor policies which aims

to get the unemployed back to work. In developing countries like India, Bangladesh, Ghana and

Madagascar, the focus is mainly upon the employment of such workers in industries which are labor

intensive. ILO has been conducting employment-intensive programmes currently in Botswana, Kenya,

the United Republic of Tanzania and South Africa. Besides that, French and Portuguese speaking

African countries receive financial support from the World Bank (ILO, 2000).

2.4 Laws in Pakistan

The history of Pakistan’s labor laws goes back to the British India times as they were inherited

from that period. Over the time these laws have advanced through a constant process meet the

changing conditions of our society, economy, the literacy rate, development projects, our population

rate, the growing trend of trade unions and the most important, Government’s commitments towards

the welfare of the citizens. To meet these targets, the labor laws of Pakistan have been evolving since

its creation. According to the constitution employees are the responsibility of Federal and Provincial

Government. In Pakistan there is no such regulatory framework that provides assistance to the jobless.

The labor policy has the requirement for every employer who has 20 employees or more to pay a

severance fee of the last 30 days of wages for each year of employment (Social Security Programs

Throughout the World: Asia and the Pacific, 2010 - Pakistan, 2010).
 GLOBAL UNEMPLOYMENT 18

Under the Industrial and Commercial Employment Ordinance enacted in 1968, it is

compulsory for every employer with 20 or more employees to have a formal written employment

contract in an industrial or commercial sector. In case of other establishments like domestic servants,

farm workers or some other casual jobs, the contract can be oral. The termination of contract can only

be if the employee misconducts or if he/she decides to leave the job themselves. If any of the

employee is not satisfied with the termination of contract, he or she may challenge the termination

order under Section 46 of the Industrial Relations Ordinance 2002, which intend to regulate the

employee-employer relation in the country (ILO, 2004).

2.5 Countries that offer extensive unemployment benefits

(Statista, 2020)
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Conclusion and Solutions

Unemployment has been facing high levels throughout the world, and the consequences

of the problem do not remain abstract but are showing their effects more prominently around the

world. The Arab Spring is a recent example of the explosive impact of youth unemployment. It

set off when Mohammad Bouazizi set himself on fire in Tunisia in 2011 when protesting due to

lack of meaningful work. Therefore, it is important that governments around the world take the

issue seriously on an urgent basis to conjure strategies and solutions to tackle the problem for the

current and future generations.

The following present some solutions that can be implemented to lessen the ‘cancer’ of

unemployment:

Many employers complain about the skillset mismatch in the potential candidates they

are interviewing for their organization. A possible solution has arisen from leaders in academia

and business including Siemens CEO Eric Spiegel, which is the apprenticeship model. In this

model, employers invest into the education and training of students who they want to hire after

their graduation. This is a way for employers to ensure that their employees have the right skills

that they require for their organization. Germany and Denmark are two countries that follow this

model and have near half the unemployment rates of the rest of Europe (Spiegel,2013). India’s

Pratham Institute also follows a similar model that not only teaches the necessary skills but pays

30% of the students’ tuition fee during their studies that they can pay back after securing a job. It

would be beneficial if laws are introduced for such businesses with resources to allot a certain

portion of their budget to apprenticeship programs that help students graduate and become ideal

employees for the company.

GLOBAL UNEMPLOYMENT 20

Often individuals from low-income areas have access to lower quality education or

skillset, and are so limited to jobs whos’ requirements they are able to fill. Similarly, many

youth’s dropout of high school or college, especially in the USA and are left at a competitive

disadvantage in regards to the actions they can perform in comparison to their college graduated

counterparts. Skill-training programs can act as a beneficial route for those who are out of school

and work in basic, job market-based skills. These programs are less effective in the short run but

overtime the benefits can outweigh the initial challenges by teaching the importance of

emphasizing goals like staying employed, advancing in the workforce, along with other strong

values. One of the most successful skill-training programmes is Jovenes, which means “youths”

in Spanish. In its teaching, Jovenes focuses on both technical skills and life skills. The

organization requires employers it partners with to sign contracts promising internships to its

graduates. It is again recommended that through business laws, organizations be required to

participate in such programs and that they be opened throughout the world.

Those who enroll into institutions to further their career prospects need to know how their

decision of what they study will impact them when the time comes to find a job. For example,

without proper information, a Marketing and Finance double majors might think that their degree

offers jobs only in the marketing or finance department, while closing their doors to enter HR,

Operations, Supply Chain and many other departments that exist out there. For this purpose, a

good career counselling team is needed in colleges to help guide students by informing them of

their potential opportunities, promising career fields and workshops to expand their skillset. The

organization Junior Achievement has worked with four million students in the US to help them

understand different jobs and career opportunities available.

GLOBAL UNEMPLOYMENT 21

With the interconnectivity of today’s generation and the virtual abilities of this

generation, entrepreneurship has become one of the most promising routes to creating jobs.

However, many entrepreneurs need mentoring when pursuing this career route as

entrepreneurship is not taught as frequently in colleges as other disciplines. One program that is

providing guidance for the youths to engage in entrepreneurship and create their own businesses

is Youth Business International which provides young people with services like business

mentoring, attracting investors and mentoring for new ventures. YBI operates in over 20 nations

and has been successful in aiding more than 50,000 youths in starting their own businesses.

Business Owners for Peace helps connect aspiring entrepreneurs to professionals who commit to

being mentors. This program is behind the prosperity many successful companies in Afghanistan

and El Salvado.

To mitigate preventable unemployment during the Covid pandemic, companies should be

compelled to set up elected work councils. These could give staff a voice on dismissals if unions

bargain for it with more than five members. Further in countries like France, Italy and Spain

there has been an immediate freeze on dismissals taken since March. Lastly to reduce

unemployment, companies can reduce the number of hours worked instead of laying off the staff.

This way jobs can be saved and more people are protected from the negative effects of

unemployment. This way, while earning less, the employees can still enjoy the benefits that

come from both work and leisure.

In Pakistan, while work at home arrangements were not previously common, with the

onset of the COVID-19 pandemic, the method is being employed by companies more

abundantly. To retain workers and avoid unemployment, it would be in the best interests to

continue with it. Further the approach of telecommuting should be also more readily adapted for

the future. In March 2020, when corona virus first hit Pakistan, in the first lockdown many

companies including the construction industry in a panic laid off many workers. The government
GLOBAL UNEMPLOYMENT 22

to prevent this policy

GLOBAL UNEMPLOYMENT 23

from growing decided to introduce incentives for companies who retained their workers and

offered them loan on easier terms. These types of policies can be continued and laws introduced

where companies in a span of time cannot terminate more than a certain percentage of their

workers.

In addition, the government should also pursue employment opportunities for the

unemployed population. Previously it has included the yellow cab scheme, chingchi rikshas, pink

rikshas for women etc. More measures like these need to be introduced to provide sources of

earning for the people. Pakistan also needs to work on its literacy rate by the government

providing education to more rural areas of Pakistan. This move would help increase the

employability chances of the population in more fields.

Word Count: 5431

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Appendix

Figure 1 – Global youth unemployment rate till 2019

Figure 2 – Global unemployment rate from 2010 to 2020

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Figure 3 – Employer’s report communication with providers to be either infrequent or ineffective

Figure 4 – Overall Unemployment in Pakistan

GLOBAL UNEMPLOYMENT 31

Figure 5 – Youth Unemployment in Pakistan

GLOBAL UNEMPLOYMENT 32