Understanding the dynamics of the labor market is crucial for policymakers, researchers, and investors alike. In the case of Pakistan, investigating the labor market from various angles can shed light on its strengths, weaknesses, and potential for growth. This blog post aims to provide an overview of different variables that play a significant role in shaping the labor market in Pakistan. We will delve into sectors such as agriculture, industry, and services, exploring data on sectoral imports and exports, capital input, R&D investment, labor market institutions, and foreign direct investment (FDI).
- Sectoral Imports and Exports: Analyzing the Trade Flows Trade plays a crucial role in shaping a country’s labor market. By examining the imports and exports of agriculture, industry, and services, we can gain insights into their competitiveness, market demand, and potential employment opportunities. According to the latest data available, Pakistan’s sectoral imports and exports are as follows:
- Agriculture:
- Imports: $X billion
- Exports: $Y billion
- Industry:
- Imports: $X billion
- Exports: $Y billion
- Services:
- Imports: $X billion
- Exports: $Y billion
Analyzing the trade flows within these sectors can help identify areas of growth and potential employment expansion.
it is informed that PBS, External Trade Statistics of Pakistan, are being compiled and maintained on the basis of the Pakistan Customs Tariff (PCT) the data related to “External Trade” is available on the PBS website from 1990-91 to 2021-2022 (HS Period, 8-Digit level along with the Country) at the following link, for the convenience of the data user.
Further, the HS Commodity Code of the items is available on the FBR website.
https://www.pbs.gov.pk/content/external-trade-statistical-data-8-digit-level-year-1990-1991-2019-2020
https://www.pbs.gov.pk/trade-tables
https://www.pbs.gov.pk/trade-publications
Furthermore, it is informed that the chief source of Import/export data is Pakistan Custom. We use Pakistan Custom Tariff (PCT) (HS-8 digit level). The link of the latest PCT is given below:
https://download1.fbr.gov.pk/Docs/2022711271427852PakistanCustomsTariff.pdf
Note: for customized data, you need to pay as per PBS data dissemination policy.
https://www.pbs.gov.pk/content/data-dissemination
- Capital Input: Understanding Sector-wise Investment Investment in different sectors has a significant impact on the labor market. By examining the capital input in agriculture, industry, and services, we can assess the allocation of resources and its implications for productivity, job creation, and overall economic growth. The latest data shows the distribution of capital input across sectors:
- Agriculture: $X billion
- Industry: $X billion
- Services: $X billion
Understanding the trends in capital investment can provide insights into the sectors that attract the most resources and their potential for job creation and technological advancements.
As for capital input data is concerned, it is informed that the Pakistan Bureau of Statistics (PBS) conducts Census Manufacturing Industries (CMI) which measures production and structural changes of large-scale manufacturing industries (LSMI). It provides data on values of inputs and outputs, census value-added, contribution to GDP, fixed assets, stocks, employment and employment cost, and industrial taxes. It is used to develop new weights for the Quantum Index of Manufacturing, for CMI and production-related statistics you may explore the following publications and monthly production of the Quantum Index of Large Scale Manufacturing Industries (QIM). Further, the microdata of the said publications (CMI 2005-06 and 2015-16) will be provided at cost as per the data dissemination policy of PBS. Visit the website of the State Bank of Pakistan (www.sbp.org.pk) and explore its publications and research sections.
https://www.pbs.gov.pk/content/qim
https://www.pbs.gov.pk/content/qim-base-year-2005-06-archive
https://www.pbs.gov.pk/industry-publications
https://www.pbs.gov.pk/publication/census-manufacturing-industries-2015-16
https://www.pbs.gov.pk/publication/small-and-household-manufacturing-industries-shmi-2015
http://www.pbs.gov.pk/qim
https://www.pbs.gov.pk/publication/pakistan-statistical-year-book-2020
- R&D Investment: Unleashing Innovation Potential Research and development (R&D) is a key driver of technological progress and innovation. By analyzing R&D investment in agriculture, industry, and services, we can assess the country’s capacity for knowledge-based growth and its impact on the labor market. The available data indicates the following R&D investment in each sector:
- Agriculture: $X million
- Industry: $X million
- Services: $X million
Analyzing R&D investment can provide insights into the sectors prioritizing innovation, which can lead to higher-skilled job opportunities and overall sectoral growth.
- Labor Market Institutions: Examining Employment Protection and Wages The institutional framework surrounding labor market regulations, such as minimum wages and employment protection legislation, plays a crucial role in shaping the labor market dynamics. By examining relevant data, we can gain insights into labor market institutions in Pakistan. Here are some key indicators:
- Minimum wages:
- Sector A: $X per hour/day/month
- Sector B: $X per hour/day/month
- Sector C: $X per hour/day/month
- Employment protection legislation: [Provide a summary of relevant labor laws and regulations]
Analyzing labor market institutions can help assess the level of worker protection, wage standards, and labor market flexibility.
As for as labor data is concerned, it is requested to kindly explore the Labor Force Survey (LFS) for employment-related data along with LFS Microdata sets, the links are provided for your convenience.
https://www.pbs.gov.pk/labour-force-publications
https://www.pbs.gov.pk/publication/labour-force-survey-2020-21-annual-report
https://www.pbs.gov.pk/publication/labour-force-survey-2018-19-annual-report
https://www.pbs.gov.pk/publication/labour-force-survey-2017-18-annual-report
https://www.pbs.gov.pk/content/microdata
- Foreign Direct Investment (FDI): Attracting Capital and Skills Foreign direct investment has the potential to bring in capital, technology, and expertise, thereby influencing the labor market. Analyzing FDI inflows and their distribution across sectors can provide insights into employment opportunities and skill development. The latest data on FDI in Pakistan is as follows:
- Agriculture: $X billion
- Industry: $X billion
- Services: $X billion
Understanding the FDI trends in different sectors can highlight areas where foreign investment is concentrated and its impact on job creation and skill enhancement.
Similarly, FDI is compiled by the State Bank of Pakistan & Ministry of Finance, therefore, please approach to their website. Moreover, kindly visit the following link of NATIONAL SUMMARY DATA PAGE (NSDP) – PAKISTAN which might be helpful for your desired data.
https://www.pbs.gov.pk/nsdp
https://www.sbp.org.pk/publications/index2.asp
https://www.finance.gov.pk/survey_2022.html
Conclusion: By investigating these different variables, we gain a comprehensive understanding of the labor market in Pakistan. Analyzing sectoral imports and exports, capital input, R&D investment, labor market institutions, and FDI provides valuable insights into the strengths and challenges of the labor market. This knowledge can guide policymakers, researchers, and investors in formulating effective strategies to promote inclusive growth, job creation, and sustainable development in Pakistan.