The concept of equilibrium between demand and supply has long been studied in conventional theories of economics. However, when we direct our attention to the dynamics of the labour market in Pakistan, we notice that there exists a perpetual disequilibrium between labour supply and the skill set demanded by the market. Since the quality of the labour force is the outcome of the education system, which is devoid of imparting practical knowledge about the complex dynamics and true needs of the economy, our students, despite being good in theoretical knowledge, find themselves struggling with the practical implications of the theories they study throughout their academic career. As a result, despite having a considerable youth population and being ranked among the top 10 countries with a considerable labour force, Pakistan is facing the problem of youth’s unpreparedness to be an efficient resource for the labour market.
The nation’s future prosperity depends on its employment rate and labour market productivity. By fundamentally restructuring the higher education model as proposed above, we may possibly eliminate the need for additional short courses and be able to empower the labour force with relevant skills and knowledge, leading to poverty reduction and significant contributions to the economy
Although it remains undisputed that the primary aim of pursuing education is to secure employment, educational institutions still seem reluctant to recognize their responsibility for the shortcomings observed in the labour force. Instead, they tend to attribute the issue to various other constraints absolving themselves of their role in this matter. At the students’ end, it would be fallacious to argue that they are not dedicating time and resources to acquire education. They certainly are, BUT it seems that all of their efforts diminish to zero the moment they embark on a job hunt.
Recently, there has been a growing emphasis on technical and vocational training and short courses. However, it is crucial to recognize that in Pakistan, technical and vocational education are seen as alternatives rather than complements to the traditional education system. Advocating for technical and vocational training could be interpreted as surrendering to the shortcomings of the current model of education and instead of restructuring the higher education system, expecting students to further invest in developing skills even after dedicating at least 16 years of time and resources to formal education. Nevertheless, with both employers and employees – the key stakeholders of the labour market and economy’s circular flow of income model – voicing their dissatisfaction, there is a need to reevaluate the determinants of the performance of the labour force.
Besides budgetary constraints, the problems inherited by the education sector arise from the reluctance and lack of readiness to implement necessary changes to the structure of teaching practices and methods adopted by educational institutions. Surprisingly, when establishing new educational institutions, there is often a lack of planning and research concerning the suitable education model to be implemented. Recent decisions, such as the National Assembly swiftly passing bills to set up 24 universities in a single sitting without conducting thorough planning and research beforehand, exemplifies this issue.
In Pakistan, there is a gap of 5.1 years between learning adjusted years of schooling (LAYS) and actual grade level of students (World Bank). This implies that a student enrolled in grade 9 may have the learning proficiency corresponding to a grade 4 student or even less than that. Moreover, the dynamics of this learning gap become even more intricate in the context of higher education, given the frequent changes in degree levels every two to four years and the substantial disparity observed in course content taught across various universities. These obstacles hamper the development of a standardized approach to calculate learning adjusted years of higher education, leaving public policy and education practitioners vague about the necessary interventions required for higher education. Furthermore, because of this disparity in course content, candidates in the labour market often encounter recruitment bias, where they are assessed based on the reputation of the higher education institutions they attended rather than considering the highest level of academic degree they have achieved.
The mismatch between skills demanded by the labour market and the skill set offered by the labour force can be attributed to two primary reasons. Firstly, despite significant advancements in knowledge production worldwide, our teaching methods continue to rely on an outdated and stagnant pool of information that has been passed down through generations of teachers. This approach disregards the importance of incorporating the latest developments in knowledge production and fails to meet the demands of the market for updated and relevant knowledge. Secondly, the lack of collaboration between educational institutions and the labour market is widespread, resulting in higher education institutions having faculty members with outstanding theoretical knowledge but limited practical experience from real-world job settings. As a result, a great majority of teachers struggle with effectively preparing students to meet the demands and requirements of the job market.
In our higher educational institutes, a significant number of faculty members possess PhD degrees and are responsible for instructing M. Phil, PhD candidates as well as undergraduate (BS) students. However, it is essential to revisit this practice, as pursuing a PhD often fosters a research-oriented mindset, making teachers with PhDs more suitable for instructing MPhil and PhD candidates rather than undergraduate students. As far as undergraduate programmes are concerned, a more effective strategy would involve engaging professionals from the labour market or the practitioners of public policy, depending upon the nature of subjects, who possess extensive practical experience. Carefully selected based on their teaching expertise, these professionals are ideally suited to serve as instructors for undergraduate (BS) students, particularly in applied subjects, where they can offer practical insights into the subjects being taught.
The rationale behind this shift lies in the fact that not all students aspire to pursue advanced degrees like MPhil or PhD after completing their undergraduate studies. Many of them prefer to enter the job market directly. Hence, prioritizing market-oriented knowledge over a purely research-oriented mindset would be more advantageous for these undergraduates in their career pursuits. Furthermore, it is crucial to introduce research methods as a mandatory subject in undergraduate programmes. This measure may provide students who have an inclination towards research with the fundamental knowledge to assess their suitability for pursuing advanced degrees such as MPhil and PhD. Moreover, equipping undergraduates with research skills can better prepare them for various professional opportunities and can ensure a more qualified labour force that meets the evolving needs of the labour market.
The nation’s future prosperity depends on its employment rate and labour market productivity. By fundamentally restructuring the higher education model as proposed above, we may possibly eliminate the need for additional short courses and be able to empower the labour force with relevant skills and knowledge, leading to poverty reduction and significant contributions to the economy.
