Key Indicators:
Qualification of the Labour Force, Labour force with intermediate education, Labour force with advanced education, Quality of secondary education, Quality of tertiary education, Labour Market Dynamics, Hiring and firing practices, Ease of finding skilled employees in local labour market, Flexible working arrangements, Labour force participation Labour Market Resilience, and Equality, Equal workforce opportunities, Workers’ rights, Female labour force participation, Social protection basic coverage, Social protection spending
Note: This pillar measures the availability of quality employees and the dynamism, resilience, and equality of the labour market, as well as the level of protection for workers. It consists of the Qualification of the Labour Force, Labour Market Dynamics, and Labour Market Resilience and Equality sub-pillars.
The success of the tourism sector relies on competent and skilled human resources,[74] as the quality of the workforce directly impacts tourist experiences and satisfaction. Effective employees and robust human resource management are essential for delivering high-quality services.[75] Investing in a well-trained, motivated, and adaptable labour force is crucial for sustaining growth and enhancing the destination’s reputation.
The quality of labour force directly impacts tourists’ experiences, influencing their opinions and level of satisfaction.
The Travel & Tourism Development Index 2024, data for the pillar Human Resources and Labour Market in Pakistan paints a complex picture. Overall, Pakistan’s ranking on this indicator is 109 out of 119 countries with a score of 3.24.[76]
There’s a mixed bag when it comes to the qualification of the labour force as Pakistan ranks 95, with a score of 3.36 indicating the quality of education declined. This decline is driven by a drop in the indicators, Quality of secondary education which is ranked 52, with a score of 4.14, and Quality of tertiary education which is ranked 68, with a score of 4.34.
Examining the indicators, both percentage of the labour force with intermediate education and the percentage of the labour force with advanced education rank 95. However, there is a notable difference in their percentages and scores: the labour force with intermediate education stands at 30.61% with a score of 2.84, while the labour force with advanced education is significantly lower at 9.32%, with a score of 2.12.
The labour market dynamics ranking in the country stands at 71 with a score of 3.92. The indicator, ease of finding skilled employees in the local market, ranks 62 with a score of 4.29. However, the ranking for hiring and firing practices and flexible working arrangements is 35 with a score of 4.45, and 59th with a score of 4.22 respectively. Every year, millions of young people enter Pakistan’s labour force without essential skills, exacerbating the unemployment rate and straining the fragile economy. This growing unskilled workforce risks worsening economic challenges.[77] Especially for the tourism industry the core challenge lies in recruiting and retaining employees who possess the right skills, knowledge, and attitudes essential for delivering quality services.[78]
For the tourism industry the core challenge lies in recruiting and retaining employees who possess the right skills, knowledge, and attitudes essential for delivering quality services.
Notably, Labour force participation has increased significantly to 52.75%, placing the country at 99, but the score for this key indicator remains low at 2.70.
Overall, in Pakistan, labour force dynamics reflect several critical challenges. The total labour force is 71.76 million, with 67.25 million employed and 4.51 million unemployed, resulting in an unemployment rate of 6.3 percent. Youth unemployment is particularly high, with those aged 15-24 experiencing a rate of 11.1 percent, and 14.4 percent among females in this age group. Unemployment also affects individuals aged 25-34, with a rate of 7.3 percent, including 13.3 percent for females.[79]
Pakistan’s ranking on Labour Market Resilience and Equality remains unchanged at 117, though there is a slight improvement in the overall score to 2.43. The country has seen a minor increase in Equal Workforce Opportunities, ranking 71st with a score of 4.08, although this score has declined. Workers’ Rights in Pakistan remain critically poor, reflected in the unchanged ranking of 92nd and a maximum score of 5.00, which indicates the worst possible conditions (1-5 worst). Pakistan’s labour laws fail to guarantee the right to organize for agricultural workers, domestic workers, home-based workers, or those in the informal sector.[80] This dire situation is underscored by Pakistan’s rating of 5 on the 2024 ITUC Global Rights Index, which signifies “No Guarantee of Rights,”[81] highlighting severe restrictions on workers’ rights and freedoms in the country.
Female labour force participation is still low at 30.43%, ranking 115th, but the score has improved to 1.85. Female labour force participation (FLFP) in Pakistan significantly lags behind global and regional benchmarks.[82] Currently, only 24.4 percent of women participate in the labour force compared to 80.9 percent of men, highlighting the considerable gender disparity.[83]
Low education levels, mobility challenges, and entrenched gender norms limit women’s entry and retention in the formal workforce, resulting in a substantial proportion of female workers being represented in the informal sector as home-based workers (HBWs).[84]
There are some positive developments in Social Protection basic coverage improving to 20.10%, ranked 95th, though the score is still low at 2.21. Social Protection spending as a percentage of GDP has also seen a slight increase, ranking 119th at 0.01%, with a score of 1.00.
The tourism industry faces a significant challenge due to a shortage of qualified professionals. Graduates’ skills often do not align with industry needs. To address this gap, educational programs must focus on practical training and ensure students acquire the competencies demanded by today’s competitive tourism market.[85].
The true difficulty, though, is finding and keeping people who not only have the necessary abilities and knowledge but also have a positive outlook on their profession. A highly skilled, driven, and dedicated personnel is crucial for providing outstanding customer service, boosting the destination’s reputation, and guaranteeing the tourism industry’s steady expansion.