In all economic evaluations the most important but widely ignored or lightly-treated indicator is the employment aspect of planning. This indicator is treated very casually in spite of its far-reaching socio-economic consequences.

The importance of employment planning has assumed great significance due to globalization of international trade and liberalization of national economies.

The most relevant aspect of economic development is the optimal utilization of both physical and human resources in a country. In countries like Pakistan, the abundant resource is the human capital and most scarce is the financial capital. In such a situation, the most logical course is to substitute human resource with additional capital resources.

In Pakistan not much has been done to properly and fully utilize human resources in a productive manner and to increase the productivity of human resources by investing in human capital.

According to latest thinking on economic development, the productivity in an economy is largely dependant on the ability of human resources through investment in skills and technology.

For analyzing the rate of unemployment in our economy the present methodology does not cater to a proper analysis of the rate of unemployment. If the claimed rate of unemployment is taken as true, the economy should not only be booming but should be over-heating.

Even in a restricted definition of unemployment used by officials , the rate of unemployment has been constantly increasing over the years. In any discussion and analysis of employment or unemployment, the definition and coverage are most important.

According to the latest labour force survey, the term ‘unemployment’ has been used more ambiguously and it includes all persons of 10 years age and above, who during the period under review were:

1. without work

2. currently available for work

3. seeking work

It is unclear from the definition whether 3 supercede 1 and 2 above in the latest labour force survey. For if it does not then 3 is redundant.

However, figures indicate that the unemployment does not include 1 and 2 above as with a crude participation rate of 27.46 per cent. The total labour force comes to 37.25 million as per PES 1996-97.

The population comprising 10 years and above would be roughly 90 million out of which 37.15 million are in labour force. If all persons of 10 years and above without work during this period are included the unemployment should be estimated as 54.85 million and not 2 million as claimed in PES 1996-97.

The present definition not only legitimizes child labour but also that of senior citizens above 60 years of age who should be adequately provided by a well employed next generation.

Apart from lack of full utilization of human resource the existence of large scale unemployment poses many socio-economic questions and increasing employment is one of the surest ways for the welfare of the common man in any society.

Recently the financial crisis in South East Asian countries resulted in millions of workers losing their jobs. The growing unemployment as a consequence can be politically very explosive. The social cost of turmoil in terms of rising poverty can be substantial and not fully reversible because of its effects on distribution of wealth.

From the above discussion it is clear that the employment aspect of economic planning in any society is most important both for more efficient utilization of human and physical resources and for achieving a more egalitarian society based on social and economic justice.

There is constant discussion for reducing poverty level both internationally and within a country. The poverty level in Pakistan has increased in the decade of 1990s. There are various reasons for this phenomenon. The most important being the lack of emphasis on employment aspect of economic planning.

For this purpose, the most important aspect is the total change in planning strategy and to make conscious effort for utilizing human resources both for increasing productivity and for better distribution of wealth in the economy.

The present model of development has increased inequality of incomes and increased incidence of poverty. Pakistan can learn from the economic policy of China where the incidence of poverty is now less than 10 per cent as compared to 33 per cent in Pakistan and 40 per cent in India.

There is need for evolving a completely new economic strategy for formulation of an employment-oriented policies. For this purpose a dialogue of economists, government officials, NGOs, universities and other thinkers will have to be evolved.

Governments of the developing countries will have to take positive steps to reduce unemployment, provide basic infrastructure, like telecommunication projects. The government will also have to make investment in social sectors like education and health.

Pakistan is at present very poorly placed in socio-economic indicators like health, education, clean water, longevity etc.

The surest way to achieve these targets is the Social Action Programme for the efficient utilization of Human resources both for better productivity and distribution of benefits to the large number of people. For this purpose a conscious effort will have to be undertaken for achieving this objective.

The present government has already initiated some programmes in this connection by providing micro credit and preparation of projects at grass root level.

The first requirement for this purpose is to generate disaggregated data for different socio-economic indicators on a regular time interval to determine the removal of any deficiency in any socio-economic indicator at district level. Every province and district governments will have to undertake studies to identify projects according to the needs of an area through district governments.

I was associated with a study on identification of under-developed target areas at tehsil and taluka level. The study used 26 socio-economic indicators determining the level of development or under-development.

At tehsil level or taluka level this study was undertaken in 1978. Such studies need to be constantly undertaken so that proper projects are identified for each city government and are prepared by professional consultants. In fact every district government should have a roster of consultants to undertake macro or micro studies for each district government.

The devolution of power at district level should result in more realistic projects which will generate more employment opportunities and result in the evolution of a just socio-economic order.