Pakistan Updates Labour Stats After Decades: LFS Launched

APP

Islamabad: In a landmark step toward modernizing Pakistan’s labour statistics, the Pakistan Bureau of Statistics (PBS) has launched the Labour Force Survey (LFS) 2024-25, aligning the country’s labour measurement system with the most advanced international standards set by the 19th International Conference of Labour Statisticians (ICLS).

The shift represents one of the most significant statistical reforms undertaken in Pakistan’s labour market history.

Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal, speaking at the launch ceremony, described the revised LFS as a “major breakthrough” for evidence-based policymaking.

“It is heartening to share the results of the LFS 2024-25, which provide critical labour market insights for policymakers, researchers, and development partners,” he said.

A Shift Decades in the Making

Until now, Pakistan relied on the older standards set by the 13th ICLS, last used in the LFS 2020-21. With the transition to the updated 19th ICLS framework, Pakistan joins 120 countries that have already adopted the globally recognized definitions and classifications of employment.

One of the most transformative changes is the redefinition of employment itself. Under the new framework, subsistence agriculture workers — previously classified as employed — are now excluded from the employed population.

 This adjustment removes 2.5 million such workers from employment figures and revises the labour force size to 83.1 million, down from 85.6 million under the older system.

Despite this shift, labour force participation shows an encouraging rise. The inactive working-age population has declined from 55.1 percent in 2020-21 to 52.4 percent in 2024-25. Labour force participation has increased to 46.3 percent — and would have reached 47.7 percent had the 2.5 million subsistence farmers still been included.

Employment, Unemployment and Sectoral Changes

Unemployment, recalculated under both standards, paints a nuanced picture. The unemployment rate stands at 7.1 percent under ICLS-19 compared to 6.9 percent under ICLS-13. Historically, unemployment had declined to as low as 5.8 percent in 2018 but rose again amid economic turbulence.

A major structural shift continues across the economy: employment in agriculture has dropped from 37.4 percent in 2021 to 33.1 percent in 2024, while services have expanded from 37.2 percent to 41.2 percent. This reflects the country’s gradual movement toward a service-driven labour market.

Women’s Changing Economic Roles

One of the most striking outcomes of the new survey is the sharp rise in average wages — from Rs 24,000 in 2020-21 to Rs 39,000 in 2024-25. The gender wage gap has also narrowed substantially, falling from Rs 4,500 to under Rs 2,000 per month. Ahsan Iqbal noted that this progress would positively impact Pakistan’s standing in global gender parity rankings.

Beyond wages, the LFS captures deeper changes in women’s economic roles. 

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Female entrepreneurship has risen dramatically: the share of female own-account workers increased from 19 percent to 25.2 percent — a jump of over six percentage points. 

Meanwhile, unpaid contributing family work, dominated by women, has dropped from 21.1 percent to 19 percent, indicating greater female entry into paid labour.

The Gig Economy

For the first time, PBS has measured the size of Pakistan’s gig economy. About 2.9 percent of workers rely on gig work as their primary job. For secondary jobs, the share jumps to 10.6 percent — with women significantly more represented than men (15 percent versus 9.8 percent).

The survey also sheds light on the immense scale of unpaid domestic and care work. 

Out of 179.6 million working-age citizens, 117.4 million engage in unpaid household and care activities. Women bear a disproportionate share: 76 percent of women perform unpaid work, compared to 55 percent of men. “These figures underscore the disproportionate contribution of women to unpaid work,” the Minister said.

Economic Constraints

Ahsan Iqbal acknowledged that Pakistan’s broader macroeconomic environment — shaped by structural reforms and IMF conditions — has constrained demand and slowed growth. Yet, he emphasized that economic stabilization has set the stage for the next phase of development.

“Our next phase is focused on boosting investment, industrial growth, exports, and generating decent employment to ensure inclusive and sustainable development,” he remarked.

Transparency in the Transition

To maintain transparency and allow researchers to compare trends, PBS is releasing all key indicators calculated under both ICLS-13 and ICLS-19 standards. This dual reporting ensures continuity across survey cycles and helps users understand the impact of the definitional change.

The launch of the LFS 2024-25 marks a new foundation for labour statistics in Pakistan — one built on internationally recognized standards, enriched labour market insights, and a clearer picture of the country’s economic realities.