One of the most telling signs of the health of any economy is its unemployment rate, more so unemployment among its educated youth. To that end, findings from the most recent Labour Force Survey via the Bangladesh Bureau of Statistics (BBS) paints a worrying, yet familiar, picture: With approximately 885,000 unemployed graduates, it is clear that our economy is, once again, failing to harness its most valuable asset -- our youth population.
According to the BBS survey, the unemployment rate among tertiary-educated individuals increased to 13.5% in 2024, with 20% being women. While there has been a marginal decrease of 20,000 in the absolute number of unemployed graduates, this is nothing more than cold comfort as the rate has still climbed, confirming that the problem is structural and perhaps even worsening.
Expert opinion, such as that of CPD’s Fahmida Khatun, tackle the issue head on: The primary engine of job creation, investment, has come to a screeching halt in Bangladesh, as private investment remains anaemic and foreign direct investment is likewise lacklustre. In Bangladesh, entrepreneurs already have to grapple with a high cost of business fuelled by energy crises, infrastructural deficits, and persistent corruption. Adding to that, a deterioration of the law and order situation has further eroded investor confidence.
Is there any surprise, then, that our investment landscape is as dire as it is?
Tackling graduate unemployment has always had clearly defined goals, not limited to easing the cost of doing business, Bangladesh has also long needed to align its education with market needs which necessitates our universities to move beyond theoretical learning and forge stronger links with industry to develop skills that are actually in demand. Furthermore, policy support and incentives can also be directed towards high-growth sectors like technology, light engineering, and the green economy -- sectors which have the potential to employ thousands of educated youths.
Addressing this issue requires moving beyond temporary fixes and acknowledging the deep-seated structural flaws in our economy. After all, we must all remember the collective frustration which resulted in the historic movement which resulted in the downfall of an autocratic government: It all started with students protesting unfair practices in government job recruitment.
