The chronic unemployment crisis is one of the gravest challenges Pakistan has been facing since long and which, unfortunately, still continues to haunt us. Even a person who has ability and willingness to work is unable to get a proper job opportunity. The unemployment rate in Pakistan is predicted by the IMF report to increase by 1.5% during the current fiscal year. It is one of the major issues Pakistan has been dealing with since its inception. Unemployment is very high because the available resources are being wasted due to negligence of authorities and of citizens. This has led to a substantial decrease in people’s income and a drop in their standard of living. This is the crisis that can be termed as root cause of many other serious challenges we are coping with today. It also causes many psychological impacts. Thousands of graduates, masters degree holders, engineers in short, people of almost every profession being wasted due to unstable employment system in Pakistan. The labour class too is perpetually going through a rough phase. The major causes of unemployment includes higher population growth rate, flawed education system, violence and terrorism, energy crisis and high retirement age and reappointments. The first thing to reduce unemployment in Pakistan is to introduce revolutionary changes in country’s education system. The age of retirement should be reduced to a maximum of 55 years. Solving the energy crisis must be the top priority of government. The agriculture sector should be developed. Jobs should given purely on merit. Robust policies must be introduced to control growing population. Economic revival package must be announced by the government to make sure the industrial sector is revived and more investment and production is carried out in Pakistan. The government should take necessary steps to provide employment opportunities.