Unemployment Jumps to ~7% as Pakistan Adopts Strict ILO Labour Definition

ISLAMABAD: Pakistan’s unemployment rate is poised to jump to ~7% in 2024-25 from 6.3% in 2020-21, according to preliminary LFS 2024-25 findings revealed at DataFest. Experts slammed dodgy Islamabad data and flagged inconsistencies — PBS stayed silent. Official report drops next week. The game-changer: Pakistan has ditched the old 13th ICLS definition and adopted ILO’s strict 19th ICLS rules — only paid/profit-generating work now counts as employment. Subsistence farming, unpaid household chores, unpaid family help, and volunteering are kicked out of the “employed” column. Result: millions of rural women, subsistence farmers, and unpaid family workers previously counted as employed will now be reclassified or removed from the labour force. Consequence: labour force participation crashes, employment rate collapses, unemployment rate shoots up — even if real jobs didn’t change. Officials claim the new method finally shows who is actually earning money vs surviving on own-use work.