This study provides a comparative evaluation of flexibility and adjustment cost by utilizing part-time and full-time employment data in the industrial sector, under the theoretical framework of the dynamic adjustment cost model of labor demand. Moreover, the categorical employment interrelationship elaborates on adjustment strategy among industrial divisions. The estimation is performed using the two-stage least squares (2SLS) and seemingly unrelated regression (SUR) methods, using data for the period, 1990–2012. The empirical estimates depict employment categories with higher employment flexibility and lesser adjustment cost for five out of seven divisions. It confirms the behavior of part-time employment as a cheap labor force, compared to full-time employment in production activities. This employment category increases flexibility and reduces costs to enhance production capacity for industrial growth in the economy. Supervisor:- Dr. Musleh-ud Din