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World

Rising unemployment, economic challenges threaten Pakistan’s young generation: Report

  • BY India News Newsdesk
  • January 27, 2026
  • 0 COMMENTS

Washington, Jan 26 (IANS) Pakistan continues to face high youth unemployment, with inflation steadily eroding purchasing power, while secure jobs in the formal sector are becoming increasingly scarce. For a large number of young people, early adulthood in the country is marked by risk avoidance rather than ambition, prioritising stability and predictability over aspiration, a report highlighted on Monday.

“With about 60 per cent of its population under the age of 30, Pakistan is facing a generational test that may prove decisive for its economic, political, and social future. Generation Z — the country’s largest and most digitally connected cohort — has the potential to reshape the nation’s trajectory. But that potential is colliding with a combination of economic stagnation, political uncertainty, and growing restrictions on expression that are pushing many young people toward disengagement or emigration,” a report in an America’s news agency, The Media Line, detailed.

At the same time, it said, rising migration in Pakistan has contributed to a shrinking middle class, strengthening the perception that hard work and education do not always lead to upward mobility.

“Education itself, long seen as a pathway out of poverty, is failing many: literacy rates remain low, millions are still outside formal schooling, and gender disparities persist as girls drop out due to domestic pressures or early marriage, while boys enter the workforce early. The result is a widening skills gap that has left many young Pakistanis unprepared for a competitive, technology-driven economy—especially in marginalised regions such as Balochistan, where unemployment and long-standing grievances fuel exclusion,” the report detailed.

“Trust in state institutions has declined, and fears of repression discourage sustained activism. Social media remains a key outlet for expression despite growing restrictions, while for some, silence or emigration feels safer than confrontation. These pressures are compounded by rising mental health strains, climate-related disasters, and constant digital exposure, deepening anxiety, isolation, and a sense of falling behind,” it mentioned.

Speaking to The Media Line, on condition of anonymity, a Gen Z graduate said that a recent survey found 67 per cent of Pakistani youth are considering leaving the country, highlighting the urgent need for policies to encourage and support the generation.

He further said, “Many young people are grappling with rising unemployment, inflation, and limited economic opportunities, creating deep uncertainty about their future”.

According to him, the report said, “these challenges — combined with broader social and political pressures — point to the need for policies that expand access to education, employment, and meaningful avenues for youth participation.”

Anum J Khan, a Lahore-based independent analyst and observer, told The Media Line that although nearly 60 per cent of Pakistan’s population is under 30, Gen Z struggles with far fewer opportunities for education, employment, and economic advancement than their numbers, skills, and expectations would indicate.

–IANS

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