Pakistan job market, October 2026: what the latest numbers mean for employers and job seekers
· 4 min read
Every week our consultants hear the same two worries from opposite sides of the table. Employers tell us good people are hard to keep. Job seekers tell us good jobs are hard to find. The latest official figures explain why both can be true at the same time.
The numbers at a glance
| Indicator | Latest figure | Source |
|---|---|---|
| Unemployment rate | 7.1% (2024-25) | PBS Labour Force Survey |
| Youth unemployment (15–24) | 12.8% (2024-25) | PBS Labour Force Survey |
| Labour force | 83.1 million, of whom 5.9 million unemployed | PBS Labour Force Survey |
| CPI inflation | 10.3% year on year (September 2026) | PBS |
| SBP policy rate | 11.5% (decision of 14 September 2026) | State Bank of Pakistan |
| GDP growth | 3.7% provisional for FY26; IMF projects 3.5% for FY27 | Economic Survey 2025-26; IMF, October 2026 |
| Federal minimum wage | Rs40,000 a month from FY27 | Federal Budget 2026-27 |
| Workers’ remittances | Record $41.6bn in FY26 | State Bank of Pakistan |
| ICT exports | Record $4.6bn in FY26 | SBP / Ministry of IT |
A young workforce that is not being absorbed fast enough
The headline unemployment rate of 7.1% hides the real pressure point: one in eight people aged 15 to 24 who want work cannot find it. Female unemployment, at 10.5%, is also well above the male rate of 6.0%. With growth of around 3.5 to 3.7%, the economy is not creating enough formal jobs for the numbers entering the market every year.
Inflation is back in the salary conversation
After a calmer stretch, inflation rose to 10.3% in September and the State Bank raised its policy rate to 11.5%. For employees, a raise below 10% this year is a pay cut in real terms. For employers, that means retention conversations will be harder, and counter-offers more common, through 2027.
Skills are leaving, and money is coming back
Pakistanis registered for work abroad reached 762,499 in 2025, according to the Bureau of Emigration and Overseas Employment, with Saudi Arabia alone taking more than 530,000. A further 317,436 registered in the first half of 2026. Remittances hit a record $41.6bn in FY26. For local employers, this is competition you can see: welders, electricians, nurses and drivers now weigh your offer against a Gulf contract.
The same is true in technology. ICT exports reached a record $4.6bn and, according to SBP data, freelancers earned about $1.76bn in FY26. A good developer in Lahore or Karachi increasingly compares your offer with a foreign client paying in dollars.
What this means if you are hiring
- Budget for inflation, not last year’s salary. Benchmark before you advertise, and check that your total cost includes the new Rs40,000 federal minimum wage (provinces set their own; Sindh is Rs43,000), EOBI and social security.
- Compete on more than pay. Remote days, medical cover for families and a clear growth path matter to candidates who have options abroad or online.
- Look harder at graduates. With youth unemployment at 12.8%, there is a large pool of capable young people. A structured six-month training plan often costs less than a senior hire who leaves within a year.
- Move quickly. In-demand candidates rarely stay on the market long, so slow processes lose them.
What this means if you are looking for work
- Judge offers in real terms. Compare any raise against 10% inflation, and look at the whole package, not the gross figure.
- Digital skills pay. Record IT exports and freelance earnings show where demand is growing. Even outside tech, data, Excel and AI tool skills set you apart.
- If you are considering work abroad, register through the Bureau of Emigration and use only licensed overseas employment promoters. Never pay an unofficial agent for a “guaranteed” visa.
- Fresh graduates: the competition is real, so a focused CV and an internship matter more than ever. See our guide to getting your first job in Pakistan.
Hiring? We help employers in Karachi, Lahore and Islamabad benchmark salaries and hire before good candidates are taken. Send a job requisition or book a free 20-minute call.
Looking for your next role? Whether you are early in your career or experienced, Submit your CV and an HR consultant will help you find roles that fit.
Sources
- Pakistan Bureau of Statistics, Labour Force Survey 2024-25
- State Bank of Pakistan, monetary policy statement, 14 September 2026
- Business Recorder: September 2026 CPI inflation (PBS data)
- Dawn: IMF World Economic Outlook projections for Pakistan, October 2026
- Dawn: FY26 workers’ remittances (SBP data)
- Dawn: FY26 freelancer earnings (SBP data)
- ARY News: minimum wage in the federal budget 2026-27
- Dawn: Sindh minimum wage 2026-27
- Minute Mirror: overseas employment in 2025 (BEOE data)
- Business Recorder: Pakistan Economic Survey 2025-26 GDP growth
- APP: FY26 ICT exports
- Business Recorder: September 2026 remittances (SBP data)
- Express Tribune: overseas employment, January to June 2026 (BEOE data)
Figures are the latest official releases available on 20 October 2026. The Labour Force Survey is published annually; we will update this page when the 2025-26 survey is released.
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