January 26, 2007	Friday	Muharram 06, 1428

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ISLAMABAD, Jan 25: Pakistan’s formal sector witnessed a drop of 10 per cent in employment while the number of unpaid family workers increased substantially from 2003-04 to 2005-06.

Most of the employment generated during the last two years was in the informal sector which surged to 73 per cent in 2005-06 from 70 per cent in 2003-04, showing a growth of three per cent.

This was recorded by the Pakistan Labour Force Survey 2005-06, published recently by the Federal Bureau of Statistics (FBS). The findings indicated that the activities generated during the last couple of years to siphon labour force off from the unorganised into organised sector reflected badly on the government policies.

An analysis of statistics showed the decline in formal sector employment was more for female workers as compared to males during the last couple of years. On the other hand, in informal sector, female participation rose during the years under review.

Under the employment status, the total number of employees in the formal sector declined by 1.57 per cent or 0.28 million during 2005-06 from 2003-04, indicating a fall in job creation.

On the other hand, the number of unpaid family workers increased by 11.66 per cent or 1.32 million during 2005-06 from the earlier two years.

This growth indicated fewer opportunities for either starting an independent job or to keep on working in family business to avoid the taxes.

The most glaring aspect was the higher number of females engaged as unpaid family workers in the ratio of 59 per cent as compared to 19 per cent males. Contrary to this, most male workers were in self engaged employment.

The decline in formal sector employment should signal alarm for the government in its failure to provide jobs to massive influx of graduates and post-graduates in the last couple of years.

Moreover, the activities of formal sector were at 29 per cent in urban areas as compared to 25 per cent in rural.

A slight increase in employment in agriculture and manufacturing sector was reflective of its capacity to absorb a larger number of people.

Job creations in construction, wholesale and retail, community, social and personal service were dismal.

The situation in transportation and other primary areas during the last couple of years remained static.