Bangladesh will be facing serious challenges in the coming years as it will have to create an estimated 7.32 million additional jobs in just three years' time, starting from the current fiscal, to absorb its increasing labour force, a government report said.
"Assuming an average GDP growth rate of 7.0 per cent during FY2009-FY2011, current values of elasticity of employment and average labour intensity, the incremental employment in that period is projected to be 5.27 million. This indicates the challenge of employment generation to absorb the labour force," said the draft PRSP of the government.
The planning ministry is preparing the second poverty reduction strategy paper (PRSP) for the period of FY2009 to FY2011. It is likely to be finalised by the end of the current month.
Director of the Bangladesh Institute of Development Studies (BIDS) Zaid Bakth said creation of the additional jobs would be challenging for the country as it has already had an unsatisfactory growth in investment in the last couple of years.
"The government will have to facilitate more employment-friendly investments both from the domestic and overseas sources," he said adding investment in sectors, where our backward linkages are strong and export-oriented, should be encouraged.
A planning ministry official said at the current 3.32 per cent growth rate, the total strength of the labour force will be at 58.28 million by FY2011, resulting in an incremental labour force of 5.44 million during the FY2009-FY2011.
Similarly, if the prevailing employment growth trend continues, total available employment opportunities will stand at 55.75 million in the same period, he said adding, "it means that including backlog of 1.88 million unemployed, the country will require 4.67 per cent employment growth rate in the three-year period upto FY2011 to provide jobs to the new labour force."
Bangladesh, one of the poorest country in the world having nearly 25 per cent of its 14.6 million population under the poverty line, has limited employment opportunities.
According to a study of the International Labour Organisation (ILO), Bangladesh is in the 12th position among the top 20 countries in the world where unemployment is rising.
The number of the unemployed in Bangladesh now is estimated at 30 million. The rate at which unemployment is increasing, it is feared that unemployment would soar to some 60 million by 2015.
According to another estimate, every year some 2.7 million young people are becoming eligible for jobs whereas only about 0.7 million of them are getting employment.
Quoting the second PRSP the planning ministry official said: "If the existing trend of underemployment rate continues, underemployed persons will stand at 26.58 million during FY2009 to FY2011."
If productive employment is to be created for at least 75 per cent of them, additional 27.26 million extra productive jobs will have to be created during the PRSP implementation period from FY2009 to FY2011, he said.
The draft PRSP suggested introduction of policies for ensuing employment-friendly growth, raising of overseas migration of workers and undertaking special schemes for job creation (especially through micro-credit) and employment-based safety-nets programmes.
It also suggested involving the commercial banks to provide loans to overseas job seekers who will repay the credit through remittances.
Unemployment problem worsens
FHM Humayan Kabir | Published: August 09, 2008 00:00:00 | Updated: February 01, 2018 00:00:00
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