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Charter of the economy : agenda for economic reforms in Pakistan
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Designing an Employment Strategy The employment growth sectors have been manufacturing, construction, transport and communications and community, social and private services. The total increase in employment is close to 10 million. Almost 3 million of this increase is in the manufacturing sector, over 3 million in the community, social and private services sector, 1.3 million in construction and over 1.1 million in transport and communications. What types of workers have seen the greatest improvement in their employment prospects? Table 27.6 gives the growth rate of employment of different occupations. A priori, there is the expectation that high level managers, technical personnel and professionals would see the greatest increase in demand in the growth process. However, workers in high level occupations saw a decline in the share in employment between 2010-11 and 2017-18. Clearly, the economy is yet to rise sufficiently in terms of technological sophistication and corporatization. Consequently, the fastest growth in employment is observed from 2003-04 to 2017-18 in the case of workers in medium level occupations, including skilled agricultural workers, clerical support workers and service and sales workers. The faster growth of employment is also observed in the case of employees versus the self-employed. Table 27.6: Distribution of Informal and Formal Employment Within Sectors(%) Years Informal Formal Total Average Wage (Rs/ Month) Manufacturing 2003-04 59.7 40.3 100.0 2017-18 62.6 37.4 100.0 16890 Construction 2003-04 91.7 8.3 100.0 2017-18 93.6 6.4 100.0 16402 Wholesale& Retail Trade 2003-04 93.5 6.5 100.0 2017-18 96.7 3.3 100.0 14007 Transport& Communications 2003-04 79.2 20.8 100.0 2017-18 81.6 18.4 100.0 19300 Government& Private Services 2003-04 49.2 50.8 100.0 2017-18 48.4 51.6 100.0 29633 Others 2003-04 37.5 62.5 100.0 2017-18 25.0 75.0 100.0 12077 TOTAL* 2003-04 70.2 29.8 100.0 2017-18 72.0 28.0 100.0 18754 *Excluding Agriculture Source: PBS, LFS 285