Why addressing unemployment must be a top priority in Bangladesh

Faisal Mahmud, a science graduate from National University, has sat for a dozen government job exams over the past two years but remains unsuccessful.

"Still, I keep trying to get a job in the private sector. It's a trauma now. I am from a lower-middle-class family and have no influential relatives or political connections. I desperately need a job to run my family. It is difficult to survive on private tuition only. Another year is coming, but I see no hope," he said.

Faisal is one of thousands of educated youths who have been looking for a job for years.

The July-August protests evolved into a massive uprising, fueled by the growing youth discontent over unemployment, and ultimately led to the fall of the Awami League government.

This movement did not happen in a vacuum. The uncertainty surrounding job prospects for university graduates was a key factor driving the unrest.

Students and job-seekers have urged the interim government to prioritise job creation to address widespread unemployment and youth dissatisfaction.

"I believe we need a long-term plan that prioritises reforming the education system strategically, creating a workforce the country needs. The government must work to bring more investments to diversify and grow all sectors to make the best use of our valuable human resources," said Farhana Sultana, a Buet student.

"Currently, people with strong connections often secure most jobs, regardless of their actual potential or intellectual capabilities. A mega job portal (software-based) where both graduates and undergraduates could take aptitude tests anytime and apply for jobs suited to their intellectual or manual skills could be a game-changer in solving this problem," added Rafia Sadika, a psychology student at Dhaka University.

Every year, approximately 22-23 lakh young people enter the job market, but job creation has slowed due to declining investment and a reduced flow of private-sector credit.

An International Labour Organization (ILO) report published in August 2024 shows Bangladesh, along with other South Asian countries, recorded the highest youth unemployment rate in 15 years, standing at 15.1%.

The report highlights a significant number of young people not engaged in employment, education, or training (NEET), largely due to unequal access to opportunities and the exclusion of young women from education and employment.

In 2023, the total number of unemployed tertiary graduates, including university, college, and madrasa graduates, rose to 9.06 lakh, up from 7.99 lakh in 2022, according to Bangladesh Bureau of Statistics (BBS) data.

The unemployment rate among persons with tertiary-level education increased to 13.11% in 2023 from 12% in 2022, according to the Labour Force Survey 2023.

A World Bank report revealed a decline in labor force participation, from 61.2% in 2022 to 59.9% in the first half of 2024. Employment also dropped by 1.2% in 2024, while the unemployment rate remained stagnant at around 3.5%.

Education Adviser Wahiduddin Mahmud pointed to the "unplanned nature" of the education system as a major factor contributing to rising unemployment among educated youths.

While universities have been established in various districts, the creation of corresponding job opportunities has lagged behind.

A white paper on Bangladesh's economy revealed that the unemployment rate among educated youth has increased 2.5 times since 2010, attributing this to a mismatch between graduates' qualifications and the needs of the economy and industries.

The report noted that many graduates lack the technical skills required in the job market and called for targeted programmes to support educated job seekers while restoring investor confidence.

A recent report by the Bangladesh Institute of Development Studies (BIDS) found that 28%—or one in four—National University graduates remain unemployed after completing their studies. Additionally, many who do find work are employed in low-paying jobs.

What are the Interim Government's Plans?

Asif Mahmud Sojib Bhuiyan, Adviser to the Ministry of Youth and Sports and the Ministry of Labour and Employment, recently announced plans to create 500,000 jobs in the public sector over the next two years.

Speaking at a National Youth Day event, he emphasised the importance of harnessing the potential of the youth population, calling it the country's most vital resource.

The interim government is committed to equipping job- seekers with the necessary skills through the Directorate of Youth Development, he said.

Rezaul Maksud Zahedi, Secretary to the Ministry of Youth and Sports, said that the government had already created 86,277 jobs in its first 100 days, including 2,468 positions in revenue and project sectors and 83,809 in other government sectors.

Besides, 19,452 people have completed training under the Department of Youth Development in collaboration with various organisations, while 52,115 are currently undergoing training.

The government aims to train 2,64,080 people for self-employment in the 2024-2025 fiscal year.