What are the impacts of global economic recession on unemployment rate in Pakistan?


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Jack Buckby answered
The unemployment rate of any country is going to go up when the world is going through a recession. It doesn't matter how stable that particular country's economy, unemployment rate is an unfortunate effect of a recession.

The first area of a country that is usually affected by a global recession is labor and the people who work. For example, the United States is currently experiencing a recession and there were 6.7 million people unemployed in the United States in April 2011. However, the global recession is being felt most harshly in Asian countries. Below are some of the effects of this global recession.

  • Agricultural sector

One of the main reasons why Asian countries have remained stable throughout this global recession is because of their strong agricultural sector. In most countries in Asia, more than half of the population still works within the agricultural sector. So no matter is going on with the rest of the world's economy, there is still a demand for food and always will be so this sector has seen very little damage from the global recession.

  • Exports

The majority of countries in Asia have seen their exports hit hard by the global recession. The amount of money taken in by exports has significantly reduced from 2008 to 2009 and has probably continued to drop over the years.

  • The future

Slowly but surely, the world's economy seems to be recovering however there is no guarantee that things are going to get better anytime soon. So if you are particularly interested in the effects of the global recession on countries in the world then you should keep a close watch on both the individual country's economy and the world's economy.

If this is a particular interest of yours but if you don't have a lot of knowledge about it then you should speak to someone who knows more than you do. For example if you are still in school, college or university then you should go to speak to someone who has a qualification in economics. They should be able to explain things better to you and in more detail.

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