In Bangladesh’s labour market, both the educated youth and the experienced working population are deprived of opportunities to join the workforce, leading to a dire social and economic stalemate in the country.
In particular, in the last 10 years, the number of highly educated unemployed people in the country has increased by 24.5%. Every year, several lakh students graduate from higher educational institutions. Currently, there are more than 450,000 vacant posts in government institutions. But there is no visible initiative to fill these positions. Currently, there are 2.6-2.8 million unemployed people in the labour market as per the Ministry of Public Administration, the Bangladesh Bureau of Statistics, and several related sources.
Many educationists are of the opinion that the number of educated unemployed is increasing day by day for three main reasons.
- There is a major mismatch between the demand and supply of the job market.
- There is no connection between education and work.
- We are not able to produce the kind of manpower that is in demand in the job market.
Moreover, the educated people who are joining the job market every year do not have suitable jobs. There are also questions about the quality of education there -- higher education can no longer guarantee employment.
Again, many experts believe that the current education system in the country is neither universal nor job-oriented. Therefore, it is not possible to establish a connection between education and work. The government also lacks a sufficient plan to employ this large unemployed population.
While the majority of the country’s people work in the private sector, and most of the highly educated unemployed have parents, older siblings, or guardians working in the private sector, unemployment is also increasing day by day here.
In the development sector, the United States and other donors have suddenly announced a funding freeze, and the scope of work is shrinking. Since Covid, the corporate sector has also seen a large number of layoffs as industrial establishments are closing down one by one. Even in the international arena, due to various restrictions imposed on countries like ours in hiring workers, there is a greater possibility of senior and experienced people to lose their jobs.
As a result, a large segment of the country’s population is being deprived of the opportunity to utilize their rich experience in nation-building and contributing to the interests of their institutions. At the same time, the difficult times they have faced in their working lives are also creating a serious crisis in the lives and livelihoods of their families. The number of new, experienced, and educated urban unemployed poor people is increasing day by day, joining the poor and extremely poor.
Apart from this, women, one of the driving forces of our country’s economy, are being largely excluded from the labour market. About 3 million women work in Bangladesh’s ready-made garment industry. Although it is a major source of foreign exchange earnings, many female workers have lost their jobs or are forced to work for low wages due to a decline in global orders. According to data from the labour rights organization Garment Workers Front, more than 100,000 female workers have lost their jobs in the last year, with a large portion of them unable to find alternative employment.
Should we graduate from LDC status?
In such a situation, the current interim government has not yet announced any move away from Bangladesh’s previously announced determination to graduate from a least developed country (LDC) to a middle-income country by 2026. As a result, there is no visible thought among the country’s policymakers, including politicians, about how many more challenges this trap of rising to the middle-income level could pose in the coming days.
Although this transition may seemingly increase our respect as a nation, the reality is that as a result of achieving this status, Bangladesh will be deprived of many global opportunities. Bangladesh will no longer receive the preferential and duty-free benefits it has been receiving for exporting other products, including garments, to various countries.
The easy loans that LDCs receive from donor countries will also be stopped. Various assistance and incentives provided to institutions and entrepreneurs from developed countries in the technology sector will also be stopped. This will also have a major impact on the pharmaceutical sector. Currently, Bangladesh can use drug formulas without purchasing intellectual property rights. But as a developing country, Bangladesh will have to purchase intellectual property rights for each drug formula to produce it. This will increase production costs many times over and have an impact on the retail market.
The first thing that is needed to create new jobs is to create an environment for increased investment in the country, where there remains no progress. To attract investment, it is necessary to remove obstacles such as the energy crisis and socio-economic and political instability as the issue of employment is linked to the overall development and stability of the country. If this situation continues in the country and investment does not increase, this crisis could become a long-term one.
Monjur Rashid is a researcher, social analyst, and policy advocate.
