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ISLAMABAD, Nov 25 (APP): The Pakistan Bureau of Statistics (PBS) has released the Labour Force Survey (LFS) 2024-25, marking a major milestone in the modernization of the country’s labour statistics.
The new survey has been conducted in accordance with the latest standards of the 19th International Conference of Labour Statisticians (ICLS), bringing Pakistan closer to full alignment with global statistical practices,said a release issued here on Tuesday.
Speaking at the launch ceremony, Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal said it was “heartening to share the results of the LFS 2024-25, which provide critical labour market insights for policymakers, researchers, and development partners.”
He noted that the latest survey differs significantly from earlier rounds as it fully incorporates the 19th ICLS framework — the international standard-setting forum of the International Labour Organization (ILO). “Out of 193 countries, 120 have already adopted these standards, and Pakistan is now moving firmly in the same direction,” he added.
The Minister emphasized that Pakistan had been using the 13th ICLS framework until the last LFS conducted in 2020-21. “From 2024-25 onwards, Pakistan is transitioning to the 19th ICLS standards, which introduce a more precise definition of employment by excluding subsistence agriculture workers from the employed population,” he stated. Under the new definition, 2.5 million subsistence farmers are no longer counted as employed in 2024-25.
As a result, the labour force stands at 83.1 million, compared with 85.6 million when measured under the older standard.
Highlighting the encouraging trends in labour market participation, the Minister noted that the share of the inactive working-age population declined from 55.1 percent in 2020-21 to 52.4 percent in 2024-25, reflecting improving confidence in the labour market. “Labour force participation has risen from 44.9 percent to 46.3 percent despite the exclusion of 2.5 million subsistence farmers under the new standards. Had they been included, participation would have reached 47.7 percent, showing a strong positive sentiment about future opportunities,” he said.
Discussing unemployment trends, the Minister explained that the unemployment rate increased from 6.3 percent in 2020-21 to 6.9 percent under ICLS-13 and 7.1 percent under ICLS-19. He recalled that unemployment had declined from 6 percent to 5.8 percent between 2013 and 2018 due to strong economic management, but subsequently rose to 6.9 percent in 2018.
The sectoral distribution of employment shows a continued shift from agriculture to services across all provinces. The share of agriculture employment declined from 37.4 percent in 2021 to 33.1 percent in 2024, while the services sector grew from 37.2 percent to 41.2 percent during the same period.
The Minister also highlighted robust wage growth, noting that average monthly wages increased from Rs 24,000 to Rs 39,000. He welcomed the narrowing gender wage gap, which fell from Rs 4,500 per month in 2020-21 to less than Rs 2,000 in 2024-25. “This improvement in women’s labour market outcomes will be reflected positively in the Gender Parity
Index of the World Economic Forum,” he remarked.
The survey also indicates rising entrepreneurship. The share of own-account workers increased from 35.5 percent to 36.1 percent, driven largely by women. Female entrepreneurship rose sharply from 19 percent in 2020-21 to 25.2 percent in 2024-25 — an increase of 6.2 percentage points. Meanwhile, the share of contributing family workers, who are predominantly unpaid women, declined from 21.1 percent to 19 percent, reflecting greater female entry into paid labour.
For the first time, the LFS provides estimates of gig-economy labour supply. For primary jobs, 2.9 percent of workers are engaged in gig-based work. For secondary jobs, gig-based labour rises to 10.6 percent, with women playing a more prominent role — 15 percent of women with secondary jobs rely on gig work, compared to 9.8 percent of men.
The report further highlights the burden of unpaid domestic and care work. Out of 179.6 million working-age individuals in 2024, 117.4 million are engaged in unpaid domestic and care activities. Among 92 million men, 50.7 million (55 percent) perform unpaid work, while among 87.6 million women, 66.7 million (76 percent) are engaged in unpaid domestic and care responsibilities. “These figures underscore the disproportionate contribution of women to unpaid work,” the Minister said.
Reflecting on Pakistan’s broader economic context, Ahsan Iqbal noted that carrying out structural reforms under an IMF programme has constrained demand and slowed growth. “Despite these challenges, the government has succeeded in stabilizing the macroeconomic environment. Our next phase is focused on boosting investment, industrial growth, exports, and generating decent employment to ensure inclusive and sustainable development,” he stated.
At the conclusion of the event, PBS highlighted Pakistan’s shift from the 13th to the 19th ICLS framework. The LFS 2020-21 was conducted under the 13th ICLS methodology, which classified subsistence agriculture workers as employed.
The LFS 2024-25, however, follows the updated 19th ICLS standards, which apply a more precise definition of employment by excluding own-use producers. To ensure transparency and comparability across survey cycles, PBS has released all key indicators under both the 13th and 19th ICLS standards.