ADB says Pakistanis could lose up to 2.3 mln jobs due to pandemic

ISLAMABAD: The Asian Development Bank (ADB) has estimated that young Pakistanis may lose between 1.5 million and 2.3 million jobs in the wake of the coronavirus pandemic that forced the authorities to impose strict lockdown restrictions and resulted in an economic downturn in the country.
The ADB shared its projections in a recently released report that focused on COVID-19 and its impact on youth employment in Asia and the Pacific.
A collaborative effort between the bank and the International Labor Organization, the report maintained that the employment prospects of the region’s 660 million young people were severely challenged.
It also urged governments to constructively engage their young citizens in policy and social dialogue and adopt “urgent, large-scale, and targeted interventions.”
“Prioritizing youth employment and maximizing youth productivity in the COVID-19 recovery process will improve Asia and the Pacific’s future prospects for inclusive and sustainable growth, demographic transition and social stability,” said the report, adding that job losses among the region’s youth was likely to continue throughout the year and “could result in youth unemployment rates doubling.”
“Between 10 and 15 million youth jobs (full-time equivalent) may be lost across 13 countries in Asia and the Pacific in 2020,” it noted.
The report considered two virus-related containment periods while estimating the unemployment rates in the region.
With a negative economic growth rate of 0.4 percent projected for their country in 2020, the report claimed that young Pakistanis were likely to lose about 1.5 million jobs if the lockdown restrictions only spanned about three months. However, this figure was likely to rise in a six-month phase since the country’s youth could lose about 2.3 million jobs.
The country’s unemployment rate that stood at 8.9 percent in 2019 was likely to hover between 17.3 and 21.5 percent.
“Youth are expected to lose employment at a faster rate than adults,” said the report, adding: “Young people in the 13 countries may lose the equivalent of 9.9 million jobs in 2020 under the 3-month scenario.”
“In India,” it continued, “the equivalent of 4.1 million youth jobs may be lost, followed by Pakistan with 1.5 million … In the 6-month scenario, job losses for youth may equal 6.1 million in India, followed by Pakistan with 2.3 million. Indonesia may see lower job losses (1.9 million) than Pakistan, despite the former having a larger youth workforce. This is likely the result of higher concentrations of youth in badly hit sectors and lower labor productivity in Pakistan.”