UNIVERSITY OF CENTRAL PUNJAB.

• Section :- Bs-Commerce/ADP

• Submitted to :- Prof. Ateeq ur rehman.

• Roll no:- BS- 0010,0011,0012,0008,

• Submitted by :- Abdul Wadood ,Bilal

Ahmad,Sohaib,Sabee ul hassan,

• Date :- 6 Feb 2018.

Labour force men and women participation in Pakistan(2007-2017)

Number of individuals in an economy who either are employed or are seeking employment.

The labor force participation rate is the percentage of working-age persons in an economy who

 Are employed
 Are unemployed but looking for a job

Typically "working-age persons" is defined as people between the ages of 16-64. People in those
age groups who are not counted as participating in the labor force are typically students,
homemakers, non-civilians, institutionalized people, and persons under the age of 64 who are
retired.

In the United States the labor force participation rate is usually around 67-68%, but this figure is
thought to have declined modestly in recent years .

Labour force participation :

Labour Force Participation The labour force participation rate is a measure of the proportion of a
country’s working-age population that engages actively in the labour market, either by working
or looking for work. It provides an indication of the relative size of the supply of labour available
to be engaged in the production of goods and services. The breakdown of the labour force by sex
and age group gives a profile of the distribution of the economically active population within a
country. The labour force participation rate is calculated by expressing the number of persons in
the labour force as a percentage of the working-age population. The labour force is the sum of
the number of persons employed and unemployed. The working-age population is the population
above a certain ageideally aged 15 and older-prescribed for the measurement of economic
indicators .
Labour market trends :

According to LFS 2006-07 the estimated population of Pakistan is 158.17 million. The labor
force of the country is 50.33 million which has been increasing over the years (see Table-13.4).
Along with the increasing participation of the population in the labor market, the employed
labour force has also exhibited rising trend. As far as the over all labour market is concerned,
several developments may be pointed out over the last couple of years. A significant
improvement is evident in terms of employment, unemployment, and labour force participation
rate. A significant decline in the unemployment rate over the last decade is also noticeable in the
midst of increasing labour force participation rates, which suggests strong absorptive capacity of
the economy. The quality of employment nevertheless continues to raise concerns.

Limitations and Exceptions :

 Data on the labor force are compiled by the ILO from labor force surveys, censuses, and
establishment censuses and surveys. For some countries a combination of these sources is used.
Labor force surveys are the most comprehensive source for internationally comparable labor
force data. They can cover all non-institutionalized civilians, all branches and sectors of the
economy, and all categories of workers, including people holding multiple jobs. By contrast,
labor force data from population censuses are often based on a limited number of questions on
the economic characteristics of individuals, with little scope to probe. The resulting data often
differ from labor force survey data and vary considerably by country, depending on the census
scope and coverage.

Age Specific Labour Force Participation Rate :

It is instructive to look at labour force participation rates for males and females by age group.
Labour force activity among the young (15 to 24 years) reflects the availability of educational
opportunities, while labour force activity among older workers (55 to 64 years or 65 years and
over) gives an indication of the attitude towards retirement and the existence of social safety nets
for the retired persons from the government job. Labour force participation is generally lower in
females than males in each age category. Male Labour force participation rate is touching to
100% in some age groups, whereas female Labour force participation rate is still lower than 30%
in some groups. Sincere and committed efforts from government in terms of creating more
opportunities for female can enhance female participation rate in economic activity. This reality
is evident from developed economies, where the profile of female participation is increasingly
becoming similar to that of men and the rates are also approaching to male levels.

The crude augmented activity rate declined by 1 percentage point and is now 38.2%. The crude
activity rate in urban areas has decreased in both males and females while it has increased in
rural areas. The Refined activity rate is defined as the Economic Survey 2008-09 184 currently
active population expressed as a percentage of the population aged 10 years and above. This rate
enables international comparison by factoring in the effect of the age composition. Refined
Activity rate is exactly the same as it was in 2006-07. It is stagnant at 45.2%. However, this rate
in males has decreased while it has increased in case females. The total augmented refined
activity rate has decreased by 2.1 percentage point and stands at 53.6%. The refined activity rate
in rural areas has increased negligibly. However, rural males are participating less than in the
previous year. The urban total refined activity rate has declined by 1.2% and stands at 38.6%

Employment by Sectors :

Pakistan has endowed a rich and vast natural resource base, covering various environmental and
climatic zones; hence the country has great potential for producing all types of food
commodities. Agriculture has an important direct and indirect role in generating economic
growth. The importance of this sector is manifold as it feeds people, provides raw material for
industry and is the base of our foreign trade. Almost 67.5 percent people are living in the rural
areas and are directly involved in this sector. The number of labourers engaged in Agriculture
accounts for 43.7 % of the total labour force. The total labour force working in the Agricultural
sector has decreased from 45 percent in 2009-10 to 43.7 percent in 2012-13. The main reason of
this change is due to technical transformation, labour is being replaced by machines, thus
limiting work opportunities in agricultural sector and this coupled with natural calamities in the
form of droughts and floods have led reduction in the income levels and thereby has led to
decline in its employment. The manufacturing and construction sectors are also playing an
imperative role in the provision of employment. In these sectors the total participation rate has
increased while the female participation rate has declined in 2012-13 as compared to 2009-10.

Female and Men labour force participation in Pakistan :

Following Friday's decline in the Unemployment Rate down to 7.3%, there has been a lot of
discussion regarding how the decline was due almost entirely to the decline in the size of the
labor force. With the labor force participation rate dropping to 63.2%, the percentage of people
participating in the labor force is lower than at any other point since May 1978, which was in the
middle of the secular shift of women joining the 'official' workforce.
While much, if not all, of the increase in the labor force participation rate in the 1970s was
attributable to women entering the workforce, the shrinking of the labor force since the peak in
early 2000 is due in majority to the exit of men from the work force. For example, since the labor
force participation rate peaked, the participation rate among women has declined by just 2.8
percentage points. Men, on the other hand, have seen their participation rate decline by twice that
at 5.6 percentage points.

Due to the fact that men are exiting the labor force at nearly twice the rate of women, the gap
between the participation rate among men and women has been steadily shrinking. The
participation rate among men currently stands at 69.5%, while the rate among women is 57.3%.
With a spread of 12.2 percentage points, the gap between the sexes has never been narrower .

Labour Force and Employment

The labour force can be defined as that part of the economically active population which can
supply labour for production of goods and services in the country. Pakistan has a very large
labour force due to its large population size. Since independence, six labour policies have been
announced by the government. These were announced in 1955, 1959, 1969, 1972, 2002 and
2010. These policies laid down the parameters for the growth of trade unionism; protection of
workers’ rights; the settlement of industrial disputes and the redress of workers grievances. The
policy of 1972 was the most progressive one in terms of reforming the labour laws. The present
government, recognizes that there should be a cordial relationship between workers and
employers and at the same time both must enjoy reasonable benefits without inflicting any set
back on the economy. This is only possible if there is a mutual awareness and understanding
between workers and employers of the rights and obligations. The labour policy 2010 has been
developed within a framework of objectives and initiatives; some of which are summarized in
Box -2.
Employment by Sectors

Labour force participation men and women(2010-13)

Most of the labour force in Pakistan works in the rural areas where agriculture is
the dominant activity. The total labour force working in the agricultural sector
remained unchanged during the 2008- 2011 period. However, female participation
has shown an increase of 1.4 percent during this period. Contrary to that the male
participation shows a declining trend. The manufacturing and construction sectors
are also playing an important role in the provision of employment. The
employment share by manufacturing sector has increased from 13.2 percent in
2009-10 to 13.7 percent in 2010-11 and the share of construction sector has
increased from 6.7 percent in 2009-10 to 7.0 percent in 2010-11. The Share of
wholesale and retail trade has decreased from 16.3 percent to 16.2 percent while,
the share of community / social and personel service sector has decreased from
11.2 percent to 10.8 percent in 2010-11.

Labour Force and Employment

The labour force can be defined as that part of the economically active population
which can supply labour for production of goods and services in thecountry.
Pakistan has a very large labour force due to its large population size. Since
independence, six labour policies have been announced by the government. These
were announced in 1955, 1959, 1969, 1972, 2002 and 2010. These policies laid
down the parameters for the growth of trade unionism; protection of workers’
rights; the settlement of industrial disputes and the redress of workers grievances.
The policy of 1972 was the most progressive one in terms of reforming the labour
laws. The present government, recognizes that there should be a cordial
relationship between workers and employers and at the same time both must enjoy
reasonable benefits without inflicting any set back on the economy. This is only
possible if there is a mutual awareness and understanding between workers and
employers of the rights and obligations. The labour policy 2010-13 has been
developed within a framework of objectives and initiatives; some of which are
summarized in Box-2
Labour force participation men and women(2013-15)

Promotion of Gender Equality and Women’s Empowerment Education is the most

important factor which paves the way to development process in all areas of life
and in turn leads to gender equality and women empowerment. The first indicator
under MDG 3 therefore aims to eliminate gender disparity in primary and
secondary education by 2005 and in all levels of education by 2015. Gender parity
is at the core of the MDGs. Pakistan has improved slightly in gender parity in
primary education, secondary education and youth literacy but still progress on
these indicators is off track. Gender parity in education for primary has improved
from 0.82 percent in 2001-02 to 0.89 percent in 2012-13, in secondary education
the increase is from 0.75 percent in 2001-02 to 0.89 percent in 2012-13. Youth
literacy Gender Parity Index (GPI) has increased from 0.65 percent in 2001-02 to
0.82 percent in 2013-14. The second important indicator of goal 3 is share of
Women in Wage Employment in the NonAgricultural Sector, which is defined as
the share of female workers in the non-agricultural sector expressed as a
percentage of total employment in the sector. This indicates the degree to which
labour markets are open to women in industry and service sectors, which affects
not only equal employment opportunity for women but also economic efficiency
through flexibility in the labour market and reflect economic factors in social
empowerment of women.
Women Empowerment
Gender equality is not only a fundamental human right, but a necessary foundation
for peaceful, prosperous and sustainable world. Providing women and girls with
equal access to education, health care, decent work, and representation in political
and economic decision-making processes can fuel sustainable economies and
benefit societies and humanity at large. According to the latest statistics, the
current female population in Pakistan is 49.2 % whereas womenparticipation in
labour force is only 28%. Clearly, this ratio is extremely low. Women
empowerment can play marvellous role in the economic development
ofPakistan and that's not possible without women employment.

Labour force participation men and women (2016-17)

• The Waseela-e-Sehat (Life & Health

Insurance) programs subsidizes healthcare for
beneficiaries and life insurance provided to one
million women, the premium is paid by the
program • Acknowledging ‘honor’ killings one
of the most critical problems facing the country,
the present government has enacted effective
legislation to address women’s issues with a
view to safeguard their rights i.e. (Criminal Law (Amendment) (Offences in the
name or pretext of Honour) Act, 2016) and (Criminal Law (Amendment)
(Offences Relating to Rape), 2016). In Pakistan the urbanization trend is not
different from other countries of the world, as Pakistan is also facing a rapid
increase in urbanization caused by population growth, urban migration, and
refugees’ migration. Due to this there is an expansion of under-resourced urban
settlements, which caused unprecedented levels of economic, spatial, social, and
infrastructural challenges and climate change impacts. The population of the
country is expected to reach 242 million by 2030 and half of the population will
live in urban areas. The facts and figures shows that the estimated population in the
rural areas decreased from 62.1 percent in 2013 to 59.46 percent in 2017, whereas,
the population in urban areas increased from 37.9 percent in 2013 to 40.54 percent
in 2017.