Majority of graduates obtaining degrees with minimal relevance to job market: Task force report

The majority of graduates are obtaining degrees in fields with minimal relevance in the job market, reads a report submitted to the chief adviser by a task force on economy and resources.

According to the report, within the largest pool (over 60% of the total graduate pool in the job market) of graduates who come from national universities, the majority have studied in subjects like Arts (31%) and Social Sciences (32%), while those studying Science (9.7%) and Commerce (22.7%) represent much smaller proportions.

Unfortunately, none of the colleges affiliated with national universities offer engineering or technical subjects. Therefore, the report states that it is not surprising that a significant percentage of graduates remain unemployed due to a curriculum that is not aligned with industry needs. 

Education and Planning Adviser Prof Wahiduddin Mahmud handed over the task force's report, titled "Re-strategising the Economy and Mobilising Resources for Equitable and Sustainable Development", to Chief Adviser Prof Muhammad Yunus at the Chief Adviser's Office in Tejgaon yesterday (30 January).

The 12-member task force was formed on September 10 to reframe the development strategies, find leakages in the financial system and restore discipline in project implementation.

The report also found that the unemployment scenario in Bangladesh is notably severe for the youth. Despite a national unemployment rate of only 3.25% in 2023, the rate for individuals aged 15-29 is much higher at 7.27%. This rate is six times greater than that of the 30-64 age group.

Of the total unemployed labour force, 78.8% falls within the 15-29 age group, which represents approximately 36% of the overall labour force. This demographic faces an alarming unemployment rate that is six times greater than that of individuals aged 35-54.

Moreover, urban youth encounter an unemployment rate that is more than 1.5 times higher than that of their rural peers, emphasising substantial differences in employment opportunities based on location, according to the report.

In rural areas, unemployment rates among males are significantly higher than those among females, whereas in urban areas, the trend is reversed, it said.

The task force made recommendations for generating meaningful employment for a significant number of youths in the country based on three key approaches:

- The issue of youth unemployment is primarily a challenge related to graduate unemployment, as the rate of unemployability is significantly higher among graduates compared to non-graduates. Therefore, policies and initiatives should primarily target young graduates, both current and future.

- Given the oversupply of graduates in the job market and the inability of the local formal industries (manufacturing and services) to absorb this large pool — most of whom come from national universities without practical industry exposure — targeted initiatives must be implemented. These should focus on providing training and encouraging graduates to explore employment opportunities in nontraditional markets such as Europe, Japan, and Korea to address the pressing issue of high unemployment.

- Looking ahead, it is crucial to halt the flow of mismatched graduate supply. The government's TVET and skill development initiatives need to be restructured and aligned with market demands and industry requirements. Additionally, the private sector should be supported in responding to market needs and encouraged to invest in modern technologies, such as industrial automation using IOT, robotics and AI.

The following section outlines 17 recommendations for tackling youth unemployment:

• Implement Compulsory Technical Vocational Training: Integrate mandatory non-IT technical vocational training within college curricula at national universities to equip students with practical skills relevant to emerging job markets.

• Incentivise Non-English Language Training: Create incentives for institutions to offer non-English language training programmes that cater to job growth in countries like Japan, South Korea, and Europe (Germany, Italy, France, Greece, Portugal, etc.), enhancing employability in those markets. Among the top 20 countries for remittance sourcing, English is not the working language in 15 of them (Bangladesh Bank, 2024).

• Short-duration Training for Global Employment: Develop and promote short-duration training courses for national university graduates in high-demand fields such as caregiving, culinary arts, and hospitality to facilitate entry into overseas job markets.

• Loan Programmes for Young Professionals for Migration: Establish loan programmes for outgoing professionals under the age of 30, including migration and foreign education loans, supported by a credit guarantee scheme (by central bank) to ensure accessibility.

• Enabling Self-employment Through Entrepreneurship: Given the country's job market size, the youth should be encouraged to be entrepreneurs right from school. Schoolchildren should be exposed to creative business ideas and taught skills to start and manage a business. Aspiring young entrepreneurs should be provided with financial support through access to credit from financial institutions and incentives from the government. Moreover, bureaucratic complexities and red tape should be reduced to improve the ease of business for new and young entrepreneurs. They should also have the opportunity to receive mentorship from experienced and successful entrepreneurs.

• Industry Engagement (including mandatory industry attachment) in All Tertiary programmes: Foster direct partnerships between industries and universities to train recent graduates, offering incentives such as partial salary reimbursements for 6-12 months and tax credits to encourage companies to hire and train newcomers. Require that a minimum of 10% of credit hours for engineering and business programmes be taught by non-academic faculty from industry, government, and professional sectors to provide practical insights and relevance. Make industrial attachments a mandatory component for all non-arts and non-social science tertiary programmes, ensuring students gain hands-on experience in their field of study.

• Introduction of New Courses Targeting Future Jobs: Direct all public and private universities to introduce programmes in future-oriented employment sectors such as smart manufacturing (industrial production engineering/management using IOT and other robotics technology), green/sustainable business management, cyber security, data analytics/big data, AI-based health technology, Edtech and Agrotech.

• Re-brand TVET Education to Encourage Higher Enrolment: Initiate a campaign aimed at fostering respect and recognition for technical, vocational, and specialised skill jobs, emphasising their critical role in economic growth and societal advancement. This effort will help attract more candidates to these professions. Additionally, it may be necessary to rebrand TVET subjects and degrees to better resonate with societal aspirations and elevate their perception.

• Leverage AI for Education and Skill Training: Leveraging AI in education and skill training can significantly enhance employability by providing personalised learning experiences tailored to individual needs and market demands. With a shortage of teachers and trainers in many modern subjects and trades, AI-driven platforms can fill this gap by offering scalable and accessible training solutions. These technologies enable continuous skill development, ensuring that learners stay relevant in a rapidly evolving job market. By integrating AI into educational and training frameworks, we can create more efficient pathways to employment, particularly in high-demand sectors.

• National Skill Database and HRD Ministry: Develop a national skill database to track skills and training across sectors and establish a dedicated Human Resource Development (HRD) Ministry to streamline the management of NSDA, TVET, and skill development programmes, ensuring coherence and strategic alignment.

• Link Youth to Employers: Training institutes should connect NEET (Not in Education, Employment, or Training) youth with potential employers through job fairs, internships, and mentorships. Employer feedback should also be utilised to align curricula with industry needs, enhancing student employability and helping to address the labour shortage.

• Improve Job Information Access: Many job seekers lack awareness of available opportunities. Job vacancies should be promoted via various channels, including newspapers, local radio, noticeboards, websites, and social media. Establishing job information centres in remote areas can enhance access, and career counselling services should further assist job seekers in navigating the market.

• Early Career Counseling: All educational institutions should offer career counselling services to help students explore career options and guide them in internships and job applications. Early exposure to the job market will better prepare students for the transition from education to employment.

• Create an Enabling Environment for Female Youth: To empower young women in the workforce, favourable conditions must be created for their participation in employment and entrepreneurship. This includes access to training, safe transportation, housing, and affordable childcare. Additionally, efforts should target the elimination of gender biases in financing for women entrepreneurs.

• Promote Fair Employment: Equal opportunity in recruitment is essential. Strong government policies should eliminate nepotism, discrimination, and corruption. Hiring must emphasize merit, and entry-level experience requirements should be reduced to provide young candidates with fair job access.

• Train Informal Workers: With a significant workforce in the informal sector, targeted job-specific training is vital for enhancing their skills and job security. Establishing a registration system for informal workers will maintain information on their skills and facilitate access to training programmes.

• Reform Vocational Training: Technical and vocational education is crucial for job opportunities. Training materials must be regularly updated to reflect industry demands. Both government and private sectors should allocate resources for more training centres, and companies should invest in ongoing skill development for existing employees through free training programmes.