Unemployment Among Educated Youth Rises to 27.8%

The World Bank's latest report reveals that unemployment among Bangladesh’s tertiary-educated youth surged from 9.7% in 2013 to 27.8% in 2022, as many struggle to find jobs that match their qualifications. Additionally, around 12 lakh people may fall into extreme poverty this year due to job losses and wage cuts.

Bangladesh's manufacturing, service, and farming sectors could boost output by up to 29% by increasing female workforce participation, according to a World Bank report. The potential increase is the highest in South Asia, given the country's relatively high initial labor productivity.

The Dhaka Chamber of Commerce and Industry (DCCI) warned that prolonged high interest rates could harm investment and job creation in the long run. DCCI President Ashraf Ahmed acknowledged that the government's rate hikes are aimed at curbing inflation but cautioned that maintaining them for too long will slow private sector growth, investment, and employment. He suggested lowering rates after December to benefit the private sector.

In Bangladesh, women are increasingly leading a transformation in agriculture, moving from traditional home management roles to managing small and medium-sized commercial farming enterprises. Over the past decade, women's participation in agriculture has surpassed men's, with a 7-percentage-point higher employment rate in this sector, according to official statistics. The Labour Force Survey (LFS) 2022 reveals that 26.2% of women aged 15 and above are involved in agriculture compared to 19.2% of men.

Unemployment in Bangladesh rose by 5.6% year-on-year to 26.4 lakh in the April-June 2024 quarter, with the unemployment rate increasing to 3.65% from 3.41% in the same period last year, according to the Bangladesh Bureau of Statistics (BBS). The rise was driven by increased joblessness among men, while women's employment improved.

Bangladesh is experiencing a troubling rise in educated unemployment, with the number of jobless individuals holding bachelor's or master's degrees doubling to 800,000 in just five years, now comprising 31% of the total unemployed. Despite economic growth, the job market has not kept pace, leaving many highly educated youths in precarious positions, resorting to informal or low-skilled work. Contributing factors include a stagnant private investment rate, high inflation, and a limited number of government job opportunities. As 83% of the unemployed are aged 15-29, concerns over employment dominate, highlighting the urgent need for enhanced investment and skill development to address this growing crisis.