Impact of Population Growth and Unemployment on Pakistan Economy

Abstract

Purpose: This study examines the impact of population on unemployment, and economic growth of Pakistan.

Methodology: The ARDL bounds testing approach is used to explore the long-term relationship between population growth, unemployment, and economic growth in Pakistan. The data used in this study is annual and spans from 1990 to 2017.

Findings: The findings show that there is a long-term relationship between population growth, unemployment, and economic growth in Pakistan, supporting the Population and Unemployment-Led Economic Growth Hypothesis.

Suggestion: It is suggested that the government of Pakistan increase the level of per capita technology, as this would promote the use of economic resources and, as a result, lead to a significant decrease in the unemployment rate.