Addressing Youth Unemployment in Rural Pakistan

Youth unemployment in Pakistan’s rural areas is an escalating socio-economic issue that deeply impacts both the lives of young people and the country's economic development, particularly within the rural economy. According to the Pakistan Economic Survey 2023-24, around 4.5 million people in Pakistan are unemployed, with the unemployment rate among youth aged 15-24 at 11.1%. This alarming statistic reflects not only structural weaknesses in Pakistan’s labor market but also highlights the unique difficulties faced by rural areas. Issues like limited job opportunities, urban migration, and a lack of relevant skills in rural communities place Pakistan’s rural youth in a precarious position, posing long-term risks for economic growth, stability, and social progress.

Pakistan's Youth Bulge: An Opportunity at Risk for Rural Communities

With around 64% of Pakistan’s population under 30, Pakistan is considered to have a “youth bulge.” This demographic presents a valuable opportunity for economic growth, especially in rural areas where youth make up a significant portion of the workforce. However, the lack of local job prospects and limited training and education systems tailored to rural needs mean that rural youth often face obstacles to finding meaningful employment. In response, many migrate to urban centers in search of work, further depleting the workforce in rural areas and contributing to urban overcrowding and labor shortages in the countryside.

The underemployment or unemployment of rural youth results in a substantial loss of productive potential within the rural economy. Agriculture, which employs a significant portion of Pakistan’s rural workforce, is not sufficiently modernized to absorb the growing rural youth population. Consequently, much of the rural economy remains stagnant, unable to contribute fully to national economic growth. Addressing youth unemployment in rural Pakistan is therefore essential, not just for rural development but for the country’s overall economic well-being.

Skills Mismatch and Limited Educational Opportunities

One of the primary factors behind high youth unemployment in rural Pakistan is the mismatch between the skills young people acquire and the actual needs of the rural economy. Education systems in rural areas often lack the resources to provide technical training aligned with local job markets. Many rural youths earn qualifications that are not applicable to available jobs, leading to either underemployment in low-wage sectors or unemployment altogether. According to the Pakistan Institute of Development Economics (PIDE), around one-third of Pakistan’s youth are unemployed, with even higher rates among educated youth. However, in rural areas, the situation is aggravated by limited access to higher education and vocational training institutions, leaving many young people ill-prepared for skilled work.

For instance, while rural economies increasingly need skilled labor in areas like modern farming techniques, animal husbandry, and rural-based small industries, young people often lack training in these practical and essential skills. Consequently, they struggle to find jobs or create sustainable livelihoods in their communities, often migrating to cities in search of better opportunities. This not only deprives rural areas of young talent but also places additional strain on urban infrastructure.

Shift in Rural Employment: From Traditional Agriculture to Diverse Opportunities

Pakistan’s employment landscape has been shifting from agriculture toward other sectors like industry and services, which now offer new and diverse opportunities for employment. In rural areas, however, agriculture remains the dominant sector. While there is potential for diversification within agriculture and related industries, rural economies are largely reliant on traditional farming methods, limiting the potential for economic development and job creation.

A key barrier in this context is the absence of infrastructure and support systems to facilitate the transition to modern farming techniques or the development of rural-based industries. Without these changes, rural youth are left with limited employment options, reducing their ability to contribute effectively to the economy. While services such as education, healthcare, and small-scale manufacturing are emerging in some rural areas, these sectors are not growing fast enough to absorb the rural youth population.

If rural employment opportunities can be diversified, particularly by promoting agricultural innovations and small-scale industries, rural areas could retain more youth, reducing the pressure on urban labor markets. For example, agro-processing, organic farming, and rural tourism represent promising fields that could attract young people to stay in rural communities while contributing to economic growth.

Government Initiatives: Addressing Rural Youth Unemployment

To address the high rates of youth unemployment, the Pakistani government has initiated various programs, some of which aim to benefit rural youth specifically. The National Vocational and Technical Training Commission (NAVTTC) is actively involved in training youth across multiple sectors, including agriculture and manufacturing. The Prime Minister’s Youth Skill Development Program, with an allocated budget of Rs. 4.9 billion, trains 56,000 youth in skills relevant to 39 technical areas, including some that are valuable for rural employment, such as agricultural machinery operation and animal health services.

Additionally, government programs that target international employment markets, such as those in the Gulf region, offer rural youth an opportunity to secure jobs abroad and send remittances back to their communities, supporting rural households economically. However, these programs alone are not sufficient to address the systemic issues underlying youth unemployment in rural Pakistan. Comprehensive support for rural industries, such as subsidies for agri-tech adoption and investments in rural infrastructure, is essential for creating sustainable employment within these areas.

Social and Economic Costs of Rural Youth Unemployment

Youth unemployment in rural Pakistan has deep-rooted social consequences. The lack of meaningful employment drives many young people to migrate to cities, leaving behind elderly populations and weakening rural community structures. This migration also leads to labor shortages in rural agriculture, impacting food security and productivity. Additionally, young people left without job prospects often experience feelings of frustration, leading to increased rates of mental health issues, drug abuse, and, in some cases, crime within rural communities.

In rural areas where economic opportunities are scarce, crime rates tend to rise as young people struggle to make ends meet. The high unemployment rate has driven some rural youth toward petty theft, illegal trade, or involvement with organized crime. The social implications of unemployment are especially troubling for women in rural areas, where female youth unemployment is particularly high. Cultural barriers, lack of safe transportation, and fewer job opportunities further restrict women's participation in the rural labor force, leading to gender disparities in economic advancement. Addressing these issues is vital to ensuring the social stability of rural communities and fostering a more inclusive economy.

The Importance of Educational Reform and Entrepreneurial Support

To tackle rural youth unemployment effectively, Pakistan must reform its rural education system to align with the needs of a modern rural economy. Emphasizing STEM fields (Science, Technology, Engineering, and Mathematics), vocational training, and agricultural sciences could better prepare rural youth for jobs in sectors that are both viable and necessary within rural communities. Training programs that focus on practical, in-demand skills—such as modern farming methods, animal husbandry, and small machinery maintenance—could be highly beneficial in this context.

Supporting entrepreneurship among rural youth is another promising strategy. Government and private-sector initiatives that offer low-interest loans, business development training, and mentorship can empower rural youth to create their own opportunities within their communities. The development of cooperatives, for example, could allow young people to share resources and knowledge, enabling them to start small agribusinesses or engage in rural manufacturing, which would diversify income sources in rural areas and reduce dependency on urban migration.

Revitalizing Agriculture: A Pathway to Rural Employment

With over 40% of Pakistan’s workforce employed in agriculture, the sector holds considerable potential for addressing rural youth unemployment. To tap into this potential, Pakistan needs to modernize its agricultural practices and introduce innovations that attract young people. Programs that promote sustainable farming, organic agriculture, and agri-processing can provide meaningful employment opportunities for youth. For instance, modern irrigation techniques, crop management technologies, and precision agriculture can make farming more profitable and appealing to educated young people in rural areas.

Moreover, agri-tourism—such as offering farm stays, organic farm tours, and agricultural workshops—could create new revenue streams for rural youth, attracting tourists and fostering community-based economic growth. By promoting sustainable, diversified, and youth-friendly agricultural practices, rural areas can retain their young population and contribute significantly to Pakistan’s food security and economic resilience.

Building a Stronger Rural Future: Integrated Policy Solutions

Pakistan’s rural economy stands to benefit immensely from a well-thought-out approach to youth unemployment. Effective policies will require collaboration between the government, private sector, educational institutions, and rural communities. Educational reform and training programs must be prioritized, focusing on equipping rural youth with practical skills that meet local needs. Furthermore, public-private partnerships could be leveraged to support rural business incubation centers, bringing together resources and expertise to foster innovation in the rural economy.

Policies should also focus on reducing gender disparities in employment opportunities and wages, ensuring that rural women have access to safe, fair, and well-paying jobs. Encouraging digital literacy among rural youth could open up avenues for freelance and remote work, allowing them to participate in the global economy without migrating to urban areas. Rural infrastructure investments, particularly in internet access, roads, and electricity, will be instrumental in facilitating these changes.

Conclusion: Harnessing the Potential of Rural Youth for Economic Growth

Addressing youth unemployment in rural Pakistan is essential for sustainable development and economic stability. Rural youth represent an untapped resource with the potential to drive economic progress if given the right tools, training, and opportunities. By modernizing agriculture, supporting rural entrepreneurship, and providing relevant education and skills training, Pakistan can retain its young population in rural areas, reducing urban overcrowding and fostering balanced economic growth across regions.

Investing in rural youth is not just an economic necessity; it is a pathway to a more stable, prosperous, and resilient Pakistan. The country’s rural economy can be revitalized by leveraging its young population to build a future where economic opportunities are accessible to all, irrespective of location. Empowering rural youth can ultimately transform the landscape of rural Pakistan, setting it on a course toward long-term prosperity and social harmony.

Please note that the views expressed in this article are of the author and do not necessarily reflect the views or policies of any organization.

Muhammad Amjed Iqbal and Azhar Abbas are Associate Professors, Abdus Samie is Assistant Professor and Amna Yousaf is a PhD scholar at the Institute of Agricultural and Resource Economics, University of Agriculture, Faisalabad, Pakistan.

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