Bangladesh has stepped into a new era following the recent uprising. With trust in the interim government that emerged from this revolution, many job seekers have recently voiced their concerns on social media, urging the government to raise the job age limit from 30 to 35 years. While it is true that unemployment has caused significant frustration among graduates, I believe this demand may not be entirely rational, as it could lead to prolonged job searches instead of engaging in productive activities.
A country's economic growth heavily relies on properly utilizing its young workforce. In this regard Bangladesh is currently in an advantageous position as the majority of its population is composed of working-age people. According to a survey by the Bangladesh Bureau of Statistics (BBS), the proportion of the labour force aged between 15-64 is 65.08% in 2023.
This favourable age structure, the demographic dividend, has significantly driven economic growth for over a decade. However, Bangladesh has already reached the peak of its first demographic dividend, and it has been steadily declining in recent years. Analysts warn that the first demographic dividend window of Bangladesh will close by the end of 2030s. To sustain its economic expansion, Bangladesh must effectively harness the potential of the shrinking demographic dividend. Raising the age limit for jobs will undoubtedly hinder this effort.
The age limit should not be the primary concern for graduate unemployment as many other factors play roles in the high unemployment rate.
Factors affecting unemployment
Over the decades, Bangladesh has seen a significant increase in enrolment rates at both primary, secondary, and even tertiary levels. However, it is depressing that our job market can offer jobs for only a small portion of the thousands ofgraduates each year. Consequently, the number of educated unemployed individuals unwaveringly rises each year. The Labour Force Survey 2022 of the Bangladesh Bureau of Statistics (BBS) reported that Bangladesh had nearly 800,000 unemployed university graduates.
In addition to the limited job opportunities, the skills gap also contributes to the unemployment of many job seekers. In our traditional education system, graduates are not provided with the job-oriented skills needed in the employment market. Many industries and companies that face a shortage of skilled workers within the country, choose to hire foreign employees at higher wages.
According to the World Bank, Bangladesh's Human Capital Index stands at 46%, which is below the average for the South Asia region and lower-middle-income countries. This figure implies that a child born today in Bangladesh can only expect to achieve 46% of their potential productivity in the future.
In some public universities, students from various departments face delays in completing their studies due to session jams. This creates a disparity as students from the same academic year in other universities graduate earlier. Given the fixed age limit for private and public jobs, these students often fall behind in securing employment. According to the 2021 survey by the Bangladesh Institute of Development Studies (BIDS), 66% of graduates from National University are unemployed.
In our society, there is a deeply rooted belief that a graduate must pursue a career in an officer-level position. This drives them to continuously strive for such suitable employment. Additionally, the security, benefits, and prestige associated with government jobs make them highly desirable career options. Many graduates persistently attempt to secure a government position until they reach the age limit. Thereby, they remain voluntarily unemployed for years.
Another discouraging factor is that many private organizations list work experience as a requirement in their job circular. As a result, these positions are often out of reach for fresh graduates, leading to a rise in involuntary unemployment among them.
Potential solutions
The government should implement effective strategies to develop human capital and create a skilled workforce. Therefore, the government needs to prioritize investments in education and health. Also, to prevent capacity mismatches, strategies for aligning the education system with the evolving market demands and technological advancements are crucial.
Society needs to change its view that obtaining government jobs or officer-level positions is essential for an educated individual. It should be normalized and socially accepted that a graduate, regardless of gender, can choose to be a street food vendor, an independent entrepreneur, a freelancer, or a cattle rancher.
There is a harsh reality that a significant portion of university-level students view their education solely as a means to qualify for job exams. They should underscore their educational growth and skills development to make them suitable for the job market. Additionally, they should possess proficiency in operating advanced technology to increase their competitive edge.
Addressing the sluggishness in completing studies is essential to ensure fairness in job opportunities. Genuine efforts are necessary in this regard, as the invaluable time lost can result in significant setbacks in their lives.
Since private organizations tend to offer more employment opportunities, they should consider relaxing the experience requirements for entry-level positions. This would help fresh graduates secure employment more quickly.
Graduate unemployment is a pressing issue in Bangladesh, leading to social, economic, and psychological costs for those affected. It significantly frustrates the country's overall development. Therefore, it is crucial to address all the major causes of this unemployment. Merely changing the age limit will not provide a sustainable solution to mitigate the problem.
Muhammad Raihan Uddin is a research associate at Bangladesh Institute of Governance and Management (BIGM) and a postgraduate in Economics at the University of Dhaka. He is available at [email protected]
