Challenges of Skill Development and Employment in Punjab. Dr. Aliya H. Khan Professor of Economics Quaid-i-Azam University Islamabad

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1 Challenges of Skill Development and Employment in Punjab Dr. Aliya H. Khan Professor of Economics Quaid-i-Azam University Islamabad

2 70.00% 60.00% 50.00% 40.00% 30.00% Literacy Profile of Population Age 10 years+ in Punjab Literate population accounts for 62% of the total population age 10 years+ in Punjab Illiterate population captures 38% of the total population age 10 years+ in Punjab % 10.00% 0.00% Illiterate Literate Source : Labor Force Survey

3 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% No Formal Education Education Profile of Literate Population Pre Matric Matric Inter Degree Post Graduate & Ph.D Source : Labor Force Survey Age 10 years+ in Punjab Most of the literate population in Punjab has less than 10 years of education (39%) Individuals with at least 10 years of education account for only 12% of the population Individuals with more than 10 years of education make up only 11% of the total population in Punjab 3

4 Youth Not In Education and Employment Source : ILO Pakistan 2014

5 Labor Force Participation Rate by Age Groups for Punjab 100% Labor Force Participation Rate by Age Groups The LFPR of youth aged years is, on average, lower than that of their adult counterparts. 90% 80% 70% 60% 50% 40% 30% 20% 10% Male Female The LFPR for males is higher than the LFPR for females for all the age groups. The youth-adult gap in participation rates is very high for males but quite narrow for females. The participation rate of male youth is much higher than that of females, and this gap is higher than the one observed for economically active adults. 0% Source: LFS ( ) 5

6 Unemployment Rate by Age Groups for Punjab Unemployment Rates By Age Group 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Source: LFS ( ) The youth unemployment rate statistics indicate that the unemployment rate for the age group is 12.4%, for the age group 20-24, it is % but this rate significantly falls to 5.67 % for the age group of The youth (aged 15 to 24) forms an important segment of the labor force in a country like Pakistan, which is undergoing a demographic transition as a result of which the share of youth in the labor force is high. Generating productive employment opportunities for this segment of the labor market is vital to ensure higher levels of growth and to promote greater social cohesion. 6

7 Structure of Employment in Punjab (Punjab Skills Development Sector Plan 2018) 7

8 Shares of GDP & Employment Source : Punjab Employment Trends 2015, Labor Force Survey

9 Gender Distribution of Employment by Sector in Punjab Females have the most share (46%) in agriculture sector employment Within industry, share of female employment accounts for only 16% of the total employment in the industry sector of Punjab In the services sector, women are working in a ratio of 1:9 to men Source : Labor Force Survey

10 Labor Force Participation and Educational Attainment among Educated Young Women in Urban Punjab (Punjab Skills Development Sector Plan 2018) 10

11 Training Disaggregation Across Gender Females are more trained within their respective employed labor force in agriculture and industry than employed males 76% of the employed females are trained in the industry sector as compared to percentage of trained males (35%) In the services sector, 21% of the males are trained as compared 18% of females Source :Labor Force Survey

12 Location Quotient of Agriculture Employment of Punjab is mostly concentrated in the agriculture sector Dark green identifies the districts with major employment share in the agriculture sector

13 Location Quotient of Industry Industrial sector of Punjab is concentrated in the northeast region of Punjab Dark blue reflects the districts with major employment share in the industrial sector

14 Location Quotient of Services Services sector is mostly concentrated in those areas where industry is concentrated Dark pink identifies the districts with major employment share in the services sector

15 Distribution of foreign migrant workers homes in Pakistan at the district level, Source : Labor Migration Status Report 2015

16 Punjab Skills Development Sector Plan 2018 Better access to quality employment or employment with better income for the citizenry is at the heart of the Government of Punjab s Growth Strategy 2018 which is the basis for this Sector Plan. International experience suggest that skills and vocational training programs are no silver bullet as the positive benefits are not always guaranteed and the program costs can be substantial. 16

17 Punjab Skills Development Sector Plan 2018 The success of these programs depends on the prevalent economic growth environment as well as features of program design, including the following: a) adequate supply of quality training opportunities that are aligned with labour demand; b) providing low cost access to these opportunities c) maximizing the return to these opportunities through complementary interventions that improve access to jobs and markets. The Government s Skills Development Sector Plan is holistic and addresses each of these elements of design. It sets itself the target of training 2 million workers by

18 Punjab Skills Development Sector Plan

19 Total No. of TVET Institutions in Punjab (2017) Public Private Source : National Vocational and Technical Training Commission (NAVTTC), Pakistan

20 Punjab Skills Development Sector Plan

21 Punjab Skills Development Sector Plan

22 Thank You