Enhancing Skill, Socio-Economic Status & Family Welfare: Employment-Specific on Job Training in Pakistan's Informal Sector

Abstract

Pakistan, with a population exceeding 200 million and the 10th largest labor force globally, grapples with a significant informal sector, employing a majority of its workforce, particularly the youth. This research paper explores the dynamics of the informal sector, its contributions to the economy, and the challenges faced by informal workers. The focus is on the crucial role of employment-specific training in enhancing the skills and livelihoods of the labor force engaged in micro-businesses within the informal economy. The data was collected from 1200workers and 60 entrepreneurs from 6 major cities of Pakistan. The application of the chi-square technique revealed significant positive correlations between on job training and various variables. Notably, a positive correlation was observed between on job training and skill proficiency, emphasizing the role of training in enhancing workers' skills. Positive correlations were also found with factors such as total duration and resources, wages, socio-economic status, engagement level, family welfare, and positive attitude This paper delves into the complexities and contributions of the informal sector, emphasizing the need for tailored policies and strategies.