Unemployment clouds future for graduates

The challenge of unemployment has long cast a shadow over Bangladesh's economic progress. For all its success in achieving high growth rates and advancing human development, the inability to create enough quality jobs to match expanding labour force remains a critical vulnerability. The seriousness of this problem is made clear with the release of the latest Labour Force Survey 2024 by the Bangladesh Bureau of Statistics (BBS), which shows unemployment has risen to 3.66 percent, the highest level in three years. The number of unemployed people now stands at 2.62 million, with urban centres experiencing sharper distress than rural areas. About 4.4 per cent of the urban labour force is unemployed compared to 3.4 per cent in rural areas. Informal employment continues to dominate the economy, making up 84 per cent of the jobs. Obviously, having some form of work is better than not working at all, but the overwhelming dependence on low quality informal jobs is hardly a cause for celebration.

Labour market pressures in the country are rising from many directions. High inflation, costly bank loans and a slowdown in new investment have severely limited growth in the private sector. This is particularly damaging for the large industries that once absorbed workers in significant numbers. Annually, an estimated two million to 2.2 million young people enter the job market, yet the economy only generates enough positions for 1.3 to 1.4 million of them. This means nearly 700,000 people are added to the ranks of unemployed each year. Traditionally, overseas migration has served as a critical pressure valve, but that outlet is now constricting. The number of migrant workers has fallen by 300,000 in a single year that leaves many frustrated job seekers vulnerable. In desperation, some turn to dishonest intermediaries, only to be exploited and lose their savings. Opportunities within the country remain just as bleak. The economy has yet to recover from the political turmoil following the mass uprising of July-August 2024. The shutdown of many garment factories along with repeated labour protests has further weakened the country's ability to generate the jobs needed for its expanding workforce.

A particularly troubling aspect is the high rate of unemployment among the graduates. According to the BBS survey, among the 2.62 million jobless people in the country about 13 per cent hold university degrees, which means nearly 885,000 graduates remain without work. This is a larger share than for any other educational group and it raises serious doubts about the promise of higher education as a reliable pathway to social mobility. Many graduates are caught in a cycle where employers demand experience they do not possess, while university courses remain too theoretical and disconnected from the skills the market requires. The social cost of this unemployment is heavy, as prolonged joblessness among educated youth risks driving talent abroad, delaying family life and creating frustration with the economic system. In this context entrepreneurship has emerged as a viable alternative, and a growing number of young people have already set encouraging examples of success in this field.

The government cannot afford to remain passive as the unemployment problem escalates into a full crisis. It must take decisive action to create a stronger environment for investment, especially in productive sectors that are capable of generating large numbers of jobs. At the same time, the education system urgently needs reform so that what students learn is in line with the skills employers demand. Above all, a clear and practical roadmap for employment generation is essential, for no economy can thrive while leaving a large share of its workforce either unemployed or stuck in insecure, low-quality informal jobs.