By: Shehnaz Khattak
In recent years, there has been a growing concern in Pakistan over the phenomenon of credential inflation. This refers to the tendency of employers to require higher and higher levels of education and certification for jobs that previously did not require such qualifications. While this trend is not unique to Pakistan, it is particularly acute in the country and is having a significant impact on the labor market.
One of the main drivers of credential inflation in Pakistan is the increasing number of graduates. According to the Higher Education Commission of Pakistan, the number of universities in the country has increased from 59 in 2002 to 195 in 2022, while the number of students enrolled in higher education has grown from around 276,000 in 2002 to over 3 million in 2022. This has led to a situation where there are simply more graduates than there are jobs that require their qualifications.
Moreover, according to a recent study by the Pakistan Institute of Development Economics, the unemployment rate for graduates in Pakistan has been steadily increasing over the past few years, from 4.4% in 2016 to 5.4% in 2019. This is despite the fact that the country has seen a significant increase in the number of graduates during this period. This suggests that there is a growing mismatch between the skills and qualifications of graduates and the jobs available in the market.
Another factor contributing to credential inflation is the lack of formal vocational education and training in the country. This means that many students are pushed into pursuing higher education degrees even if they are not well-suited for academic study or do not have a clear career path in mind. This results in a glut of graduates with little practical experience or skills, further exacerbating the problem.
Moreover, the study also found that graduates who do find employment are often overqualified for their jobs. This means that they are working in positions that do not require the level of education and training they have received, leading to dissatisfaction and frustration among workers. This trend of overqualification is particularly acute in the public sector, where the number of graduates employed has increased dramatically in recent years.
The consequences of credential inflation are wide-ranging. For one, it means that many young people are forced to take on large amounts of debt to finance their education, with no guarantee of a job at the end of it. It also means that those who do not have the means to pursue higher education are increasingly shut out of the job market, leading to social inequality and unrest.
The phenomenon of credential inflation is not unique to Pakistan, and has been observed in other countries such as the United States and India. However, the situation in Pakistan is particularly concerning due to the country’s large and rapidly growing population. According to the World Bank, Pakistan’s population is expected to reach 403 million by 2050, making it the fourth most populous country in the world. This means that the problem of credential inflation is likely to become even more acute in the coming years.
One possible solution to the problem of credential inflation is to encourage more entrepreneurship and self-employment among graduates. This would help to create new jobs and reduce the pressure on the formal job market. However, this would require a significant shift in the mindset of graduates, many of whom have been conditioned to see employment in the public or private sector as the only viable option.
Ultimately, it will take a concerted effort by policymakers, educators, and employers to address the issue of credential inflation in Pakistan. Failure to do so could have serious consequences for the country’s economic growth and social stability in the years to come.
The writer is Senior Auditor at Auditor general of Pakistan. She can be reached at [email protected]
