How Inflation and GDP Growth Affect Pakistani Unemployment


  • Dr. Sarah Khan Department of Economics, Lahore University of Management Sciences (LUMS), Lahore, Pakistan
  • Prof. Muhammad Ali Institute of Development Economics, Pakistan Institute of Development Economics (PIDE), Islamabad, Pakistan


Econometric analysis, Pakistan, Unemployment, GDP growth, Inflation


A nation's economic development is dependent on its human resource utilisation. But underutilization of human resources is a major problem that hurts emerging nations' economies like Pakistan's. The high unemployment rate in Pakistan is said to be caused by a number of macroeconomic issues. Accordingly, this study set out to examine Pakistan's unemployment trends over the past decade and to ascertain the degree to which macroeconomic variables, such as GDP growth and inflation, negatively or positively affect the country's unemployment rate. Gather information in order to propose policies that will help Pakistan deal with its high unemployment rate.