Last week’s release of the Pakistan Labour Force Survey (LFS) 2024–25 should be treated as more than a statistical update. It is a national warning.

The dream of becoming a USD 3 trillion economy—often echoed in speeches and policy documents—rests on one core foundation: our labour force. Yet the latest data confirms what many economists have feared for years: Pakistan’s workforce is structurally unprepared for economic takeoff.

The numbers paint a sobering picture. Labour force participation has increased marginally—47.7 percent overall—but the rise hides deep fractures. Female participation is still just 24.4 percent, one of the lowest in the region, despite women being 49 percent of the population.

The formal sector remains a minority employer—only 27.9 percent of jobs—while a staggering 72 percent of non-agricultural workers remain trapped in informality. Wages tell an even harsher truth: the average monthly wage is only PKR 39,042, far below what is needed to sustain a middle-income lifestyle. Meanwhile, unemployment has climbed to 6.9 percent, and youth unemployment remains painfully high. These are not the indicators of an economy preparing to soar; they are the markers of one stuck in neutral.

What emerges from the LFS is the profile of a workforce that is young, underutilized, poorly skilled, and structurally trapped in low-productivity sectors. Nearly 35 percent of employment is still absorbed by agriculture—mostly low-return, subsistence farming. Manufacturing remains stuck at around 14 percent, showing no diversification or movement toward higher-value production.

Informal wholesale and retail trade is now........

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