Pakistan is currently grappling with a severe economic crisis, marked by rising unemployment and deteriorating workforce conditions, largely driven by government policies disguised as economic reforms.

These economic policies, heavily influenced by international financial institutions, have resulted in aggressive taxation and energy price hikes, leading to a GDP contraction of 0.5% in 2023 and soaring inflation at 29.6%.

As a consequence, the unemployment rate has surged to 8.5% in 2023, up from 6.2% in 2021, translating to approximately 5.6 million unemployed individuals, with female unemployment reaching 11.1%.

The employment-to-population ratio has dropped to 47.6% in 2023, indicating a job gap of 2.4 million, which reflects the extent of the crisis.

Informal employment has risen dramatically, accounting for 84.3% of total employment in 2021, leaving workers without essential benefits such as sick leave, maternity rights, and job security.

Households are increasingly forced to cut essential expenses, resulting in higher school dropout rates and worsening health and nutrition standards, particularly impacting women and girls.

The government has also implemented a policy termed 'rightsizing', leading to the elimination of 11,877 public sector jobs, disproportionately affecting vulnerable workers.

Privatization efforts, particularly at institutions like Pakistan Steel Mills and Pakistan International Airlines, have led to massive layoffs, with over 9,000 workers affected at Pakistan Steel Mills alone since 2020.

The World Bank has estimated that 37.2% of Pakistanis could fall below the poverty line, potentially adding an additional 3 million people to the impoverished population due to these deteriorating economic conditions.

In light of these challenges, over 800,000 professionals emigrated from Pakistan in 2022, highlighting a desperate flight of talent amidst worsening economic conditions and job scarcity.

Moreover, employees at the National Database and Registration Authority (NADRA) remain on temporary contracts, lacking permanent employment status and pension rights despite years of service.

To address these issues, Pakistan requires a fundamental shift in economic priorities towards job creation, social protection, climate adaptation programs, and inclusive leadership that values workers as essential to sustainable growth.

Additionally, the introduction of the Uniform Labour Code 2024 has dismantled long-standing worker protections, further increasing precarious employment and limiting collective bargaining rights.