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Pakistan’s Youth Face Growing Employment Crisis Amid AI Transformation

October 15, 2026
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Pakistan remained worst in the region providing employment  to youth during 2015-16, ILO

Picture: peacechild.org

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ISLAMABAD: Only 7 per cent of Pakistan’s youth have access to formal technical and vocational training, compared with the regional average of 22pc, highlighting a major gap in skills development. The World Bank estimates that this gap costs the country $31.5 billion annually in lost productivity and unrealised export opportunities.

The issue of youth employment in the age of artificial intelligence (AI) is among the key topics at the World Economic Forum’s annual meeting of Global Future Leaders, which opened in Dubai on Tuesday. Pakistan’s experience highlights the challenges of connecting education with employment opportunities.

Nearly one-third of Pakistanis aged 15 to 29 are not in education, employment or training (NEET). The situation is even more concerning for young women, with more than half falling into this category.

Experts point out that the problem is not a lack of hard work or talent among young people. Instead, many lack access to career guidance, professional mentorship, industry connections and reliable information about job market demands.

According to national figures, the unemployment rate among graduates stands at 18.3pc, higher than the overall unemployment rate of 14.7pc across all education levels. This suggests that obtaining a degree does not necessarily guarantee a job in Pakistan.

The situation is particularly serious among younger graduates. Gallup Pakistan’s analysis of the Pakistan Labour Force Survey 2024-25 shows that unemployment among graduates aged 20 to 24 has reached 32.8pc, meaning nearly one in three young graduates in this age group is without a job.

The growing gap between education and employment highlights the need for a stronger system that equips young people with practical skills, provides career support and connects them with employers.

As AI continues to reshape the job market, Pakistan faces an urgent challenge: preparing its young population with the skills and opportunities needed to compete in a rapidly changing economy.

Tags: AI PakistanCES 2017Pakistan

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