Poverty and Unemployment: Causes, Impact and Way Forward
Introduction
Poverty and unemployment are interlinked socio-economic issues that hinder the progress of any nation. Poverty refers to a condition where individuals lack the financial resources to meet basic needs such as food, shelter, and healthcare. Unemployment, on the other hand, is the inability of able and willing individuals to find productive work. Together, they perpetuate a cycle of deprivation and inequality, especially in developing countries like Pakistan.
Causes of Poverty and Unemployment
The root causes of poverty and unemployment are diverse. A rapidly growing population puts enormous pressure on limited resources and jobs.
Lack of industrial development, energy crises, political instability, and a poor education system contribute to high joblessness. Rural areas are especially affected due to limited employment opportunities outside agriculture.
Another major factor is the mismatch between education and market needs. Thousands of graduates are produced annually, but many lack the skills required by employers. This “educated unemployment” is a growing concern.
Corruption, poor governance, and lack of investment in small and medium enterprises (SMEs) also restrict job creation.
Impact on Society
Poverty and unemployment have far-reaching consequences. They lead to increased crime, drug abuse, malnutrition, child labor, and illiteracy.
Social unrest, feelings of injustice, and political extremism often thrive in environments where the youth see no hope for the future. Economically, a large unemployed population contributes less to national productivity and becomes a burden on social welfare systems.
Recent Government Initiatives
The Government of Pakistan has introduced several programs to alleviate poverty and boost employment. The Ehsaas Program offers cash transfers and interest-free loans to underprivileged families.
Kamyab Jawan Program aims to empower youth through skill development and business financing. Rozgar schemes, industrial incentives, and the promotion of IT freelancing are steps in the right direction, but large-scale implementation remains a challenge.
The Way Forward
To address poverty and unemployment effectively, Pakistan must focus on economic diversification, vocational training, and quality education.
Investment in agriculture, tourism, and technology sectors can generate millions of jobs. Small and medium enterprises (SMEs) should be encouraged through easy credit and tax relief.
Above all, political stability, rule of law, and transparent governance are essential for sustainable development.
Conclusion
Poverty and unemployment are not just economic problems—they are moral and social challenges. Eradicating them requires a joint effort from the government, private sector, and civil society. As Nelson Mandela once said:
“Overcoming poverty is not a gesture of charity, it is an act of justice.”