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June 16, 2025

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MONDAY, JUNE 16, 2025
More unemployment among youth with higher education: Fahmida Khatun  

Economy

TBS Report
08 June, 2024, 03:25 pm
Last modified: 09 June, 2024, 12:30 pm

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More unemployment among youth with higher education: Fahmida Khatun  

Women with over 9-year education face higher unemployment

TBS Report
08 June, 2024, 03:25 pm
Last modified: 09 June, 2024, 12:30 pm
Dr Fahmida Khatun. Sketch: TBS
Dr Fahmida Khatun. Sketch: TBS

The more time spent in formal education, the higher the unemployment rate in the country, according to Dr Fahmida Khatun, executive director of the Centre for Policy Dialogue.

"There is an unusual relationship between education and unemployment, and unfortunately, it's not favourable. We observe an alarming trend where individuals struggle to find employment as their level of educational qualification rises," Fahmida said today during a webinar on "Youth unemployment in Bangladesh" organised by the Forum for Bangladesh Studies.

She highlighted that educated youth, particularly those with 11 years or more of institutional education, face prolonged unemployment despite their qualifications. Besides, women with more than nine years of institutional education experience higher unemployment rates.

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"Besides, those with less than seven years of institutional education have significantly lower unemployment rates, finding employment more easily," she added.

Citing the Bangladesh Bureau of Statistics (BBS) "Labour Force Survey" data, Fahmida said the unemployment rate in the country is 3.6%, with youth unemployment accounting for about 80% of this figure.

Additionally, the NEET (Not in Education, Employment, or Training) rate stands at 30%, a statistic the economist described as "terrible."

She criticised the current method of measuring unemployment, based on International Labour Organization (ILO) guidelines, which consider individuals who work at least one hour per week as employed.

She argued that this approach doesn't accurately reflect unemployment in Bangladesh, where short-term employment is uncommon.

"The unemployment rate in the country, as per BBS data, stands below 4%, based on the ILO guidelines, which consider individuals working at least one hour per week as employed. However, this figure does not accurately reflect the true unemployment scenario in our country, as it is uncommon for people to hire someone for just an hour," she explained.

She further said the economic recession has significantly impacted our country's overall economic stability. "Despite this, our growth trajectory remains positive.

"However, private sector investment in our country is notably lower compared to GDP, standing at about 23.5%. While we have witnessed GDP growth over the last decade, employment growth has not kept pace, particularly evident in the declining employment opportunities in the agricultural sector."

Approximately 90% of total employment in the industrial sector and about 68% in the service sector are informal, she noted, adding that informal recruitment practices hinder the creation of decent employment opportunities.

As a panel discussant, Fahim Mashroor, CEO of bdjobs.com, expressed grave concern over the alarming state of youth unemployment in the country.

He warned that the current trajectory of the country's economy could exacerbate the unemployment crisis further. "Our job market has remained stagnant since the onset of the pandemic, despite our transition from a less developed country to a developing one."

He highlighted a significant skills gap among students, noting that many college and university graduates aspire to work for multinational companies but lack the necessary language and communication skills.

"In the past, government jobs were preferred by individuals from rural areas. However, even urban students now show a strong inclination towards government employment over private sector jobs," Fahim observed.

He pointed out the challenge faced by organisations in sifting through a large number of applications for a single job posting, attributing this to the lack of adequate skills and training among applicants, despite their institutional education.

He further said, "While the government is allocating a significant portion of the budget towards skill development, I believe that directing industry-centric funding through the private sector, rather than solely focusing on institutional programs, would yield more impactful results." 

Bangladesh / Top News

Unemployment / Unemployment Rate / jobless rate / youth employment

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