Emerging Trends in Labour Market and Women Employment

by Atiq ur Rehman

The recently released Labour Force Survey 2024–25 provides valuable insights into the evolving dynamics and emerging patterns of the labour market, particularly from the perspective of gender equality and inclusion. Labour force participation The Labour Force Survey 2024–25 indicates that female labour force participation (aged 15 and above) has increased from 16.3 million in 2020–21 to 20.9 million in 2024–25, meaning that 4.6 million women have entered the job market over the past four years. This trend reflects a growing inclination among women to seek employment and suggests that barriers to their participation in the economy are gradually diminishing. However, a significant concern remains: 45.4 percent of women in the 15–24 age group are still outside the labour force—they are neither in education or training nor in employment. This proportion is substantially higher than that of men, which stands at 13 percent. The figures suggest that barriers to labour market entry for young women remain particularly strong. The main reasons for non-participation of female youth are largely unchanged and include being a student and not willing to work (27.7 percent), housekeeping and not willing to work (55.7 percent), being too old to work (7.9 percent), and being too young to work (3.4 percent). Notably, the share of women who report being unavailable for work due to family restrictions has increased from 0.5 percent to 2.8 percent. This rise indicates that family and social constraints on women’s economic participation may be intensifying, posing new challenges alongside the progress being made. Employment The total number of employed women (in the age group 15 & above) has increased from around 14.8 million to nearly 18.8 million—meaning that about 4 million women have secured jobs in just the last few years. This pace of growth highlights that women are competing well in the job market. Within this broader shift, women’s employment patterns are also improving. While agriculture continues to employ a large number of women—with employment rising from 10.4 million to 12.4 million—female employment in non-agricultural sectors has expanded even faster, increasing from 4.9 million to 6.9 million. This growth of about 41 percent indicates diversification of women’s work and growing entry into services and industrial activities. At the same time, women’s presence in the formal sector has risen from 1.7 percent to 2.3 percent – a phenomenal increase i.e. over 35%. Although the overall level still remains modest – in comparison with that of men (i.e. 12.1%), this increase is significant, as formal jobs provide better security, income stability, and access to social protection. Work intensity and job quality are also showing signs of improvement. Average weekly hours worked by women have increased from 34.1 to 35.8 hours per week, suggesting stronger and more sustained engagement in the labour market. On the other hand, average number of hours worked by men has decreased from 51.4 hours to 50.4 hours, indicating that work burden is shifting form men to women. Unemployment Yes, unemployment among women has slightly increased —from 9.1 percent to 10 percent. However, the rise in women’s unemployment should be viewed in context as a reflection of more women actively seeking work and entering the labour force. As participation continues to rise, short-term pressures on employment are expected, but these also signal a growing supply of motivated female workers ready to contribute to the their families and the national economy. Here, it is interesting to note that unemployment rate among females holding degrees has decreased from 43.1% to 22.8%. This is a healthy sign. However, unemployment rate among women holding degrees of master and PhD has slightly increased from 20.2% to 23.9%. Almost same is the trend in case of men. That implies that demand for higher education is more likely declining in the job market. Gender wage disparity The gender wage disparity in hourly earnings stands at 18.95%. However, this gap narrows with age, declining from 35.6% among the 15–24 age group to 21.3% for those aged 25–34, 10.8% in the 35–44 group, 6.8% in the 45–54 group, and just 4.7% among those aged 55–64. This trend suggests that wage inequality is more pronounced at early career stages and gradually diminishes with experience and seniority. Regarding the monthly gender wage gap, it has declined significantly overall, falling from 18.36% to just 4.97%. In the manufacturing sector, the gap has also narrowed, though the reduction has been modest, decreasing from 38.93% to 33.14%. Technical and vocational training One of the major concerns regarding gender inequality lies in the area of technical and vocational education and training (TVET). The number of females receiving technical or vocational training declined from 6.9 million in 2020–21 to 6.5 million in 2024–25. In contrast, during the same period, the number of male training beneficiaries increased from 10.6 million to 13.3 million, indicating a decline in women’s overall participation in TVET. This trend may suggest that barriers to women’s participation have intensified. Notably, the sharpest decline has occurred in public or government TVET institutions, where female enrollment has halved from 0.4 million to just 0.2 million. Conversely, the number of women trained in private institutes increased by 80%, rising from 0.5 million to 0.9 million. Even more striking is the significant drop in women’s participation in long-duration TVET programs (over one year), which fell dramatically from 5.8 million to just 1.8 million. At the same time, women’s participation has grown substantially in short-duration courses. Enrollment in training programs of less than three months increased from 0.1 million to 1.0 million, while participation in 3–6 month programs rose from 0.2 million to 2.3 million. Similarly, the number of women enrolled in 7–12 month programs doubled from 0.7 million to 1.4 million. Concluding Statement Taken together, these trends paint a promising picture. Pakistan’s labour market is expanding, women are participating in greater numbers, millions of new jobs have been created, and structural shifts are opening new avenues for female employment. With continued focus on skills development, formalization, and women-friendly workplace policies, these positive trends can be strengthened further—positioning women as a central driver of Pakistan’s future economic growth.
  • Female labour force participation has increased significantly, with 4.6 million women entering the labour market since 2020–21. However, nearly half of young women (15–24 years) remain outside employment, education, and training, indicating persistent and deep-rooted barriers to early labour market entry.
  • While women labour force participation has improved, non-participation due to family restrictions has increased, suggesting that social norms and household responsibilities continue to constrain women’s choices and may be intensifying for younger cohorts.
  • Women’s employment has grown by about 4 million, with faster expansion in non-agricultural sectors than in agriculture. This reflects increasing diversification of women’s work into services and industry and signals positive structural change.
  • Women’s participation in formal sector employment has increased by over 35%, a notable gain. However, the overall level remains low compared to men, highlighting the need for targeted policies to expand women’s access to secure and protected jobs.
  • Women are working longer hours on average than before, while men’s working hours have declined slightly, indicating a gradual rebalancing of work intensity between genders.
  • The slight increase in women’s unemployment rate is largely a consequence of more women actively seeking work. This suggests growing willingness to participate rather than deteriorating employment prospects.
  • Declining unemployment among women with bachelor’s degrees contrasts with rising unemployment among those holding master’s and PhD degrees, implying a weakening demand for highly specialized qualifications in the current labour market.
  • Wage disparities are highest at early career stages and decrease significantly with age, experience, and seniority. The sharp decline in the monthly wage gap indicates progress, though sector-specific gaps—particularly in manufacturing—remain substantial.
  • Female enrollment in TVET has fallen overall, with the steepest decline in public-sector institutes. This points to growing barriers in access, relevance, or attractiveness of public TVET for women.
  • Women are increasingly opting for short-duration courses while withdrawing sharply from long-term TVET programs. This suggests a preference for flexible, quick-to-market skills—possibly driven by economic pressure, household responsibilities, or perceived returns to training.
  • While gains in participation, employment, and wage equality are evident, setbacks in youth inclusion, long-term skills development, and public TVET participation highlight the need for integrated policies addressing social norms, childcare, flexible training pathways, and demand-driven skills development.
These conclusions underline that gender inclusion in the labour market is improving, but without targeted interventions—especially for young women and long-term skills development—the gains may remain limited and uneven.

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