Unemployment rises to 3.66% in 2024 – higher among educated

The national unemployment rate in Bangladesh increased further in 2024, with joblessness remaining far higher among the educated than those with no formal education, according to the latest Labour Force Survey.

In 2024, 1.25% of the unemployed had no formal education, compared with 1.96% of primary school completers, 2.91% of secondary school completers, 7.13% of higher secondary graduates, and 13.54% of university graduates.

The unemployment rate among university graduates rose slightly from 13.11% in 2023, while those without formal education also saw an increase from 0.95%. Rates for primary, secondary, and higher secondary education similarly climbed over the year.

While unemployment rates for most education levels decreased slightly in 2023 against the previous year, the rate among tertiary-educated individuals continued to rise, highlighting a stark disparity in employment outcomes based on educational attainment.

The survey also noted that the national unemployment rate for individuals aged 15 or older stood at 3.66% in 2024, with males at 3.75% and females at 3.48%. Youth aged 15-24 bore the highest burden, with a rate of 9.65%. Rural areas recorded a lower unemployment rate at 3.4%, compared with 4.4% in urban areas.

Economists attribute the rise in unemployment to high inflation, poor investment climate, and rising bank interest rates, which have discouraged business expansion and job creation.

According to BBS's definition, an individual is considered unemployed if they did not work for at least one hour in the past seven days but were available for work during that period and the following two weeks, and actively looked for paid employment or profit-oriented work in the past 30 days.

The survey shows an estimated 26 lakh people aged 15 and above were unemployed in 2024. Of these, 13 lakh were youths aged 15-24, and 13 lakh were adults aged 25 or older. Male unemployment accounted for 18 lakh, while 8.2 lakh females were unemployed.

Geographically, Dhaka division had the highest number of unemployed, followed by Chattogram and Rajshahi. Mymensingh recorded the lowest at 1,04,000.

Youth unemployment remained particularly high, with 13 lakh aged 15-24, followed by 9.16 lakh in the 25-34 age group and 3.79 lakh aged 35 or older.

12.17 crore working-age population

The BBS report said, of the 12.17 crore Working-Age Population (WAP), 6.91 crore (56.75%) were employed or engaged in economic activity. Male workers accounted for 66.90% of the employed population, while females made up 33.10%.

Young adults aged 15-29 represented 33.10% of employed persons, adults 30-64 comprised 62.76%, and those aged 65+ made up just 4.20%. Employment differed sharply between urban and rural areas.

Agriculture, forestry, and fishery workers formed the largest share nationally at 42.18% of employed persons, followed by craft and trade workers (14.72%) and service and sales workers (14.66%). 

In urban areas, 24.59% worked in service and sales, whereas rural employment remained dominated by skilled agriculture workers (53.09%), with women comprising 86.80% of rural female agricultural employment. 

Overall, 44.68% of employed persons worked in agriculture, 37.95% in services, and 17.37% in industry. Urban employment was concentrated in services (61.72%), while rural areas relied heavily on agriculture (56.92%).

Informal employment accounted for 84% of total employment nationally, affecting 95.96% of women and 78.08% of men. Urban informal employment reached 73.76% and rural areas 87.58%. Only 16% of employed persons held formal jobs, with females comprising 4.04% and males 21.92%.