Economic growth contributes to real wage increase, poverty alleviation and reduction in unemployment rate.

In the labour market the forces of supply and demand jointly determine price (in this case the wage rate) and quantity (in this case the number of people employed). It is interesting to note that the triggers to labour demand have been remittances by overseas Pakistanis as well as the structure of economy as represented by ownership pattern of land holdings and control over financial assets, both of which have implications for employment. With the demographic transition taking place in Pakistan, youth unemployment takes centre stage. Youth should be absorbed productively well before the period when old age dependency threatens this potential. Consider that the labour force is growing every year but the opportunities for employment are declining and that too at a fast rate. The good news though is that youth unemployment is below the global average in our country. Trends in agespecific unemployment rates differ considerably for males and females in the labour force. Male unemployment has increased in the last two decades whereas female unemployment has decreased. The gap between the projected female working age population and the projected labour force is likely to increase sharply over time. The reduction in this gap is desired. Although unemployment among females has historically been higher than among males, the gender gap has narrowed considerably over time.