Demographic Transition and Youth Employment in Pakistan

In: The Pakistan development review: PDR, Band 47, Heft 1, S. 27-70

Abstract

There is convincing evidence that Pakistan has entered the
demographic bonus phase; child dependency is declining and youth share
in the total population is rising. This paper has examined youth
employment in the context of demographic transition evidenced since the
early 1990s. Changes in the level of educational attainment have also
been analysed. The study has used the data from Pakistan Demographic
Surveys and Labour Force Surveys carried out between 1990 and 2005.
Findings of the study show that the benefits of demographic transition
in terms of rising share of youth in the total population has partially
been translated through development of their human capital and
productive absorption in the local labour market. While the pace of
human capital formation seems to be satisfactory in urban Pakistan, it
is dismal in rural areas, particularly for females. High levels of both
female inactivity across the education categories and unemployment for
males as well as females urge a strong youth employment policy in
Pakistan to reap the benefits of the ongoing demographic transition.
Youth are a source of development, and a high priority may be placed on
preparing them with the skills needed for their adjustment in the labour
market.