ISLAMABAD: The anticipated GDP growth rate of 4.2 will not be able to meet the rising job demands of the large unemployed population, the Annual Plan 2011-12 said.

According to the plan the labour force growth, based on projected average population and increase in labour force participation rate estimated at 3 per cent which indicates that around 1.75 million new jobs would be required in next fiscal year.

The annual plan said that the estimated population of the country was 177.1 million by June 2011 and the labour force participation rate of 33 per cent as per the labour force survey 2009-10, the labour force is estimated at 58.4 million.

Of the total labour force, males constitute 45.1 million (77 per cent), whereas females are 13.3 million (23 per cent).

Of the total labour force 55.2 million are employed, while remaining 3.2 million persons, who constitute 5.6 per cent of the labour force, are unemployed.

Out of total unemployed persons, males are 2 million (61 per cent), while females are 1.2 million (39 per cent).

The annual plan said that around 6 per cent GDP growth is required to absorb the growing labour force and to maintain the unemployment level of 2010-11.

“Our economy is projected to grow by 4.2 per cent in 2011-12, which is less than required growth rate of the economy to absorb the growing labour force and maintain the same level of unemployment,” the plan observed.

Hence, prudent policy initiatives are required to generate additional employment and maintain the unemployment rate at the level of 2010-11, it added.

It has been suggested that policy initiative may be taken to facilitate the private sector growth as well as generating employment.

Provision of demand-driven vocational training along with credit policy for self-employment is also considered as prudent policy initiatives for employment generation.

The continuation of National Internship Programme (NIP) would be helpful in decreasing the pressure from the labour market.

Boosting of overseas employment elasticity is expected to improve by focusing on sectors having high labour intensity, such as construction, small and cottage industry and would reduce pressure on labour market in the country.

The annual plan said that the policy focus of government was on creation of decent employment opportunities and human resource development.

The importance of the fact can be gauged by the initiatives taken by the government such as NIP, President's Rozgar Scheme, credit for self employment by National Bank of Pakistan, enhancement of residential facilities by construction of one million housing units, doubling of lady health workers to cover kachi abadis, raising of minimum wage from Rs6,000 to Rs7,000 and pension of workers, establishment of National Vocational and Technical Education Commission (Navtech).

The plan said that these measures were helpful in employment generation and human resource development.

The specific policies and programmes include sectoral development, investing in water resources, development programme for employment generation, micro-credit facilities through SME Bank and Khushhali Bank.