Labor market is one of the important components in the economy of a country. Any change to the labor market will directly impact the performance of economy. Total labor force in Punjab is estimated to be 36 millions in which 45% of the workers are working in agriculture sector while 24% of the workers are engaged in industrial sector (Government of Pakistan, 2015). Punjab province possesses potential in terms of industrial base, agriculture production and labor force. However, the performance of commodity producing sectors (agriculture and industry) is lower in comparison to the share of labour force (i.e. 69%). Growth rate, contribution in GDP and share of employment in the agriculture, industry and services of Pakistan are reported below:

Sectoral Shares in National and Provincial Accounting

 

Agriculture

Industry

Services

Pakistan

Growth Rate of the Sector (%)

-0.19

5.00

5.71

Contribution in GDP (%)

20.8

21.0

58.6

Share of Employment (%)

42.3

22.6

35.1

Punjab Province

Average Monthly Wage (PKR)

7,509/-

12,247/-

16,525/-

Years of Education (Median)

Illiterate

5

8

Trained Workers

12%

42%

21%

Share of Employment

45%

24%

31%

Sectoral Share in GDP of Punjab

21%

25%

53%

Source : Government of Pakistan (2015), Government of Pakistan (2016), Government of Punjab (2015a)

As compared to services, national growth rate of agriculture and industry is low despite the absorption of 64.9% of total labor force. This phenomenon can be generalized across the provinces of Pakistan. For Punjab, 45% of the labor is working in agriculture while agriculture sector contributes to 21% of the GDP of Punjab only (Government of Punjab, 2015a). Since Punjab has major share of labor in Pakistan, therefore Punjab needs to identify the impediments to exploit this untapped potential of industrial growth, agriculture productivity and efficient labor. The research at Capacity Analytics emphasizes on examining the role of wage differential in the labor market as a catalyst to strong industrial and agricultural growth.

Our Work

  • Profiling the characteristics of Labour Force in Pakistan
  • Employment & Labour Force Participation Trends in Pakistan
  • Determinants of Female Labour Force Participation: A case study of district Khushab
  • Outsourcing and Labour Migration
  • Internal Migration in Punjab: Trends & Choices

Our Services

  • Earning Survey for DigiSkills Project