Nearly 20 lakh jobs lost in 2023-24 in Bangladesh, another 8 lakh decline expected by this year: WB
Women and youth were hardest hit by these job losses, the global lender said in the report.
Employment in Bangladesh fell by nearly 20 lakh from 2023 to 2024, with an additional decline of 8 lakh expected in 2025, the World Bank has warned, highlighting a slowdown in job creation and real earnings growth for less-skilled workers.
The report, launched today (25 November) and titled "Bangladesh Poverty and Equity Assessment 2025," notes that labour incomes weakened due to slow job creation and slower real earnings growth for less-skilled workers over 2022-2025.
Women and youth were hardest hit by these job losses, the global lender said in the report.
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It added that inflation has outpaced wage growth for the poorest, with 2025 price increases more than double those during the Covid-19 pandemic.
As a result, it said, poverty is projected to have increased from 18.7% to 21.2%, based on microsimulation models that integrate labour market dynamics, remittances and public transfers.
"For years, Bangladesh has been known for its success in poverty reduction. But with a changing global context, severe climate vulnerabilities, and a slower rate of job creation, labour income has weakened," said Jean Pesme, World Bank division director for Bangladesh and Bhutan.
"A business-as-usual approach will not accelerate poverty reduction. The fastest path to reducing poverty and ensuring the dignity of people is through job creation, particularly for youth, women, and vulnerable populations. A pro-poor, climate-resilient, and job-centric strategy will be essential to ensure inclusive and sustainable growth."
Job creation stagnated in the manufacturing sector and shifted to less productive sectors, hitting women and youth the hardest, according to the report.
One in five young women remains unemployed, while one in four educated young women is without a job. In urban areas, job creation stagnated outside Dhaka, and labour participation fell, particularly among women.
Half of all youth aged between 15 to 29 work in low-paying jobs, suggesting a skill-mismatch, the World Bank said.
