Ahmed Khan Malik

Sindh is witnessing a significant surge in unemployment, with one million workers becoming jobless over the last four years. The unemployment rate in Sindh, according to Labour Force Survey, has increased by 5.3% over the last four years, sparking concerns that the province may be heading toward a deeper economic crisis if immediate corrective measures are not taken.

The rise in joblessness, reported across urban centers like Karachi and Hyderabad as well as rural districts, reflects broader nationwide economic challenges but appears to be hitting Sindh particularly hard due to its heavy reliance on industries currently struggling to stay afloat. Those most affected include fresh graduates, daily-wage labourers, women seeking entry-level employment, and individuals working in agriculture-dependent districts where crops have suffered due to high input costs and erratic weather patterns.

As inflation continues to erode household income and economic uncertainty persists, experts warn that Sindh’s unemployment crisis may intensify in the coming months. Without swift and decisive action, they say, the province risks long-term damage to its workforce and economic stability. Economists attribute the rise in joblessness to a combination of factors, chief among them being reduced industrial output, high inflation, energy shortages, and declining private investment.

Many factories in Sindh’s industrial zones are operating below their capacity, with owners citing high electricity tariffs, increased raw material costs, and subdued demand as the primary reasons for layoffs. “The production costs have doubled in the past year,” said Yousaf Saeed, an economist. “Businesses cannot absorb the burden anymore, and the first casualty is always employment.”

He said that the informal sector — often considered the backbone of Sindh’s labour market — has also been severely affected. Small shopkeepers, roadside vendors, hawkers, and transport workers report earnings far below what they made even a year ago. With rising fuel prices and reduced consumer purchasing power, many have been forced to shut down or shift to lower-paying work. For families dependent on daily wages, the situation has become increasingly precarious, Yousaf said. Rural Sindh faces its own set of challenges.

Agricultural communities are grappling with higher fertilizer and seed prices, limited access to credit, and the lasting impacts of floods that damaged fields and infrastructure. Naveed Dharejo, an agriculture economist in Hyderabad, said many farm labourers, unable to find consistent seasonal work, are migrating to urban areas only to discover limited opportunities there as well.

“This rural-to-urban labour shift is straining job markets in cities already saturated with job seekers.” The spokesperson for the provincial labour department told Wealth Pakistan that new vocational training centers are under consideration, particularly in districts with high unemployment rates. “We recognize the urgency,” the spokesperson said. “Our goal is to equip people with marketable skills and encourage entrepreneurship.”

Credit: INP-WealthPk