Extent of 'decent work' in Pakistan

The timely release of the findings from the Labour Force Survey of 2017-18 by the Pakistan Bureau of Statistics enables the determination of the extent of decent work in Pakistan. 'Decent work', according to the ILO, represents opportunity for work that is productive, delivers a fair income, provides security at the workplace and ensures social protection for families. It provides better prospects for personal development and social integration, freedom for people to express their concerns, organize and participate in the decisions that affect their lives. There is need to investigate what proportion of the almost 66 million workers in Pakistan have the privilege of decent work.
The first aspect that needs to be highlighted is the unfortunate dark side of the labour force in the form of child or bonded workers. Child workers, in the age group of 10-14 years, are estimated at 2.1million in 2017-18. This number has gone up by 50 percent since 2012-13, thereby highlighting the pressure of poverty on a large number of families in Pakistan. 59percent of the child workers are male and 85 percent are resident in the rural areas.
Bonded workers are present in some sectors like agriculture, brick kilns, fishery and mining. They are subject to all kinds of exploitation, including physical abuse. ILO estimates that the number of bonded workers in Pakistan is in excess of 2 million.
The next key statistic is the number of workers in marginal occupations and economic activities, viz., subsistence agriculture, own-construction of one's dwelling, etc. Conventionally, these persons are considered out of the labour force. Their number stands at 10.8 million in 2017-18. The worsening of labour market conditions is highlighted by the 50 percent increase in such workers in the last five years.
A large part of the labour force works in the informal sector in Pakistan. Conditions of 'decent work' are seldom satisfied in the informal sector. Wages are low and variable, the working day is characterized by long hours of work, job security is minimal and the working environment has health and other hazards. There is also little or no scope for collective bargaining.
Almost 72 percent of non-agricultural workers have jobs in the informal sector in activities related to construction, wholesale and retail trade, road transport and social and economic services. In 2017-18, the number of these workers is 27.3 million. It has grown by 18 percent since 2012-13 as compared to the overall growth of total number employed of 10 percent. As such, more jobs are being created in the informal sector than in the formal sector. This increases the likelihood that the share of the 'working poor' is increasing.
The unemployment rate is consciously understated in Pakistan by the PBS. It is reported at even less than 6 percent in 2017-18. It is especially high in urban areas at over 7 percent and among female or highly educated workers. Workers with a degree or postgraduate qualification currently face an unemployment rate of over 16 percent as compared to 3 percent in the case of illiterate workers.
Turning to working conditions, the first is the number of hours worked on average per week. The normal standard is 35 hours a week. However, a large proportion of workers are either 'overworked' or 'underworked'. Among employees, almost 40 percent put in over 48 hours a week. The corresponding percentage for the self-employed is as high as 51 percent. At the other end of the distribution, underemployed workers have a share of 14 percent. Such workers are employed part-time and most are likely to be getting low wages.
Another important indicator is the exposure to hazardous work. A perhaps shocking statistic is that 3.7 percent or 2.3 million workers were injured or afflicted by disease due to the conditions in the working place in 2017-18. The incidence of work related injury or disease is higher in rural areas.
A fundamental element of 'decent work' is if the employment provides a fair income and a living wage. Unfortunately, this is not the case for the majority of employees in the country. In 2017-18, the minimum wage was Rs 15000 per month in most locations. The Labour Force Survey reports that a staggering 53 percent of the employees in Pakistan earn less than the minimum wage. However, this is the stark reality and highlights the exploitative nature generally of the employer's relationship with his/her employees.
The next question is have real wages been at least increasing over time? Between 2012-03 and 2017-18, there has been a 3.5 to 5 percent increase annually, depending on the skill level of the worker. In fact, the skill premium has increased. This is primarily a reflection of the extremely low rate of inflation in consumer prices in recent years and the larger increase in labour productivity highlighted by the faster GDP growth.
The final question is whether the legal framework in the country promotes 'decent work' or not. Following the passage of the 18th Amendment, labour-related functions are mostly with Provincial Governments. There are existing laws on payment of minimum wages, restriction of child and bonded labour, etc. But the basic problem lies in their lack of implementation. There is need to strengthen the Provincial labour departments and the operation of labour courts.
Overall, there have been positive and negative developments with regard to the incidence of decent work in the country. Fortunately, the new PTI government is focused on creating two million jobs annually. There is need also to ensure that bulk of these jobs provide for decent work. The quality of life of millions of families in the country largely hinges on improvement in the functioning of the labour market and to a more inclusive process of growth in the country.
(The writer is Professor Emeritus at BNU and former Federal Minister)