Index of Freedom from‘Want’ chart 7.2. Clearly, as the unemployment rate in the economy increases, it takes the many vulnerable workers below the poverty line. Chart 7.2: Labor force participation rate and Unemployment rate The third indicator is the percentage of marginal workers in the labor force, especially women in residual jobs. The index value of this indicator has shown some improvement over time. To ensure human security, efforts should be made to further decrease the percentage of marginal workers in the labor force of Pakistan. The fourth indicator of employment and wages is the percentage of employment in the informal sector. This indicator shows limited access of workers to job security or to the labor welfare services. Table 7.3 shows that this index has declined sharply over the years, indicating a rising share of workers in the informal sector. The fifth indicator is the average real wage. The major determinant to assess the market conditions for labor is to identify the trend in the average real wage. The change in the incidence of poverty among the masses can also be gauged through this indicator. In recent years, the average real wage has shown a downward trend, especially in view of a higher rate of inflation. The sixth indicator is the skill premium. Table 7.3 shows that skill premium in Pakistan has fallen from 2017-18 onwards, indicating a lower private rate of return to higher education and specialized skills. 53