Educated but unemployed; joblessness soars among graduates in Bangladesh 

Tanvir Rahman holds a business degree and big dreams, but after two years of job hunting, he is still waiting for his first real opportunity.

Tanvir's story is far from unique.

Across Bangladesh, thousands of graduates like him are facing rejection, disillusionment, and a shrinking pool of job opportunities, as the promise of higher education continues to fall short of delivering a meaningful career.

"I graduated two years ago, but I have yet to find a stable job," said Tanvir Rahman, a 26-year-old business graduate. "Many companies ask for years of experience, which fresh graduates like me simply don't have."

Despite holding university degrees, a growing number of young graduates in Bangladesh are struggling to secure employment, underlining a critical issue within the country's labour market.

According to the latest report from the Bangladesh Bureau of Statistics (BBS), the unemployment rate among educated youth—graduates and postgraduates—has reached around 11%, markedly higher than the overall national unemployment rate of approximately 4.2%.

The situation has been further aggravated by broader economic challenges, the rise of automation and the lack of adequate skill-based training.

The latter half of 2024 and the beginning of 2025 have been especially bleak for job seekers, as job advertisements in both the public and private sectors have slowed dramatically.

Even private sector investment remains sluggish. Data from the Bangladesh Bank revealed that private sector credit grew 9.86% year-on-year in August, only to dip to 7.66% in November.

The decline continued with a drop of 9.20% in September and 8.30% in October. This comes despite the central bank's monetary policy target of 9.8% growth by December.

Moreover, during the July-November period of the current fiscal year, the settlement of letters of credit (LCs) for capital machinery import dropped by 21.90% compared to the same period in the previous fiscal year, reflecting reduced industrial expansion.

While public sector jobs account for only around 6% of total employment, the private sector is expected to accommodate the rest of the country's workforce.

Experts attribute the worsening crisis to a persistent mismatch between academic education and industry needs, limited job opportunities, and a fiercely competitive market.

"Universities in Bangladesh produce thousands of graduates each year, but many of them lack the practical skills employers are looking for," said Mahmudul Hasan, an HR executive at a multinational company in Dhaka.

"There is a significant gap between academic learning and market demands. Employers are looking for candidates with technical and digital skills, problem-solving abilities, and real-world experience," he said.

Government initiatives such as internship programmes, vocational training, and digital skill development courses have been introduced in an attempt to address the problem. Yet, experts argue that these efforts remain insufficient without stronger collaboration between academic institutions and industries.

Economists warn that continued youth unemployment could lead to long-term consequences, including social unrest, brain drain, and economic stagnation. Many disheartened young people are seeking employment abroad, contributing to a growing outflow of skilled talent from the country.

A recent BBS report revealed that the unemployment rate among university graduates has now risen to 12.3%, significantly above the national average.

"I completed my degree in Business Administration two years ago, but I have yet to find a stable job," said Fahim Rahman, a graduate from a reputed university in Dhaka. "Most employers ask for experience, but how can fresh graduates gain experience if no one is willing to hire us?"

Employers continue to express concern that the country's education system does not adequately prepare students for the demands of the job market. Many companies now prefer candidates with hands-on experience or vocational training over those with only theoretical knowledge.

Additionally, the advent of automation and artificial intelligence is reducing the need for traditional white-collar jobs, placing further strain on employment prospects for graduates.

While the government has rolled out programmes aimed at enhancing employability—such as those spearheaded by the National Skills Development Authority (NSDA)—many graduates still struggle to find jobs that align with their qualifications.

In December 2023, Bangladesh reported a total of 70,983,000 employed persons, while the labour force participation rate stood at 61.7%.

Experts stress that without meaningful reforms in both education and employment policies, the dream of becoming a middle-income country could remain elusive.

The growing number of unemployed graduates is fast becoming a new dimension of the country's economic and social challenges. As universities continue to produce an increasing number of degree holders each year, the job market is struggling to absorb the influx, leaving many without viable employment.

"This crisis in graduate employment is not just a youth problem—it's a national one," said a Dhaka-based economist. "If we don't act now, we risk long-term economic stagnation."

The government has acknowledged the crisis and introduced initiatives promoting entrepreneurship, vocational training, and digital skills development.

Meanwhile, private companies are also offering internship programmes and skill-building workshops to help bridge the gap between education and employment.

However, concerns are mounting over the rising trend of 'overqualification', where graduates are forced to take on jobs that require significantly lower skills than their academic qualifications.

"I have a master's degree in Business Administration, but I am currently working as a customer service representative," shared Rabbi Dewan, a recent graduate. "I had no choice but to take this job because finding a role that matches my qualifications has been incredibly difficult."

Experts underline that addressing the graduate employment crisis requires a multifaceted approach, including reforming the education system, improving career counselling services, and boosting investment in job creation.

As graduates continue to flood the job market, pressure is mounting on policymakers, businesses, and academic institutions to find sustainable solutions.

While the challenges are serious, the solutions are within reach. With stronger collaboration and strategic planning, Bangladesh has the potential to transform its young, educated population into a powerful engine of growth and innovation.