Pakistan’s unemployment crisis is no longer just a future worry; it is already slowing economic growth. World Bank president Ajay Banga said job creation will remain a “binding constraint on growth” for a long time. He warned Pakistan must create about 30 million jobs in the next decade to keep the economy growing. Currently, Pakistan’s economy is growing too slowly. The average GDP growth between 2022 and 2025 was just 1.7%, with high inflation cutting real incomes and weakening job demand. Key sectors like agriculture, manufacturing, construction, and retail—employing over three-quarters of workers—have shrunk. Manufacturing, construction, and trade have all contracted, leaving fewer jobs as millions of young people enter the workforce yearly. The latest Labour Force Survey shows unemployment hit 7.1% in FY25, the highest in 21 years. Even worse, the 2023 Population and Housing Census reports unemployment at 22%, highlighting youth’s difficulty finding jobs, pushing many to seek work abroad. With the labour force growing about 3% yearly, Pakistan needs at least 5% economic growth to stop job market decline. The gap between growing workers and shrinking jobs is why Banga calls employment Pakistan’s “North Star” policy challenge. Without fast job growth, the country’s demographic advantage becomes a problem, leading to brain drain and social pressure. Skilled professionals are also leaving Pakistan, showing job issues affect all skill levels. Meanwhile, inflation has outpaced income gains, cutting real household income and increasing poverty risks. Unequal growth means the poor feel the strain most. Slow, unequal growth passes economic stress through the labour market into every corner of society. Pakistan must act fast to create millions of jobs and turn its demographic challenge into opportunity, says Banga.