Bangladesh's economy generated only 0.51 million new jobs in 2023, the lowest employment growth in 12 years and well below the annual average of over 1.12 million since 2013, according to the Bangladesh Bureau of Statistics (BBS).
Despite the sluggish job growth, the number of unemployed people fell to its lowest level since 2010 and the unemployment rate dropped to its lowest point since 2002, which was attributed to the increase of 0.85 million working-age population remaining out of the labour market in a single year, said the final report of the BBS Labour Force Survey 2023.
The report found 3.35 per cent unemployment rate in 2023, which was 3.53 per cent in 2022. The number of unemployed people dropped to 2.46 million in 2023, 0.14 million lower than in 2022. The number of unemployed people was 2 million in 2002-03, and it reached 2.6 million in 2010.
The report showed the labour force increased by 0.4 million in 2023, the lowest since 2010. The labour force increased by 1.12 million since 2010, further revealed the report.
It also highlighted that the number of people who remained out of the labour market reached 47.17 million in the reporting year, which was 46.32 million in 2022. A total of 0.85 million working-age people left the labour market in a year, said the report.
The BBS counted the people engaged in economic activities during a short reference period as employed people following the method of the International Labour Organisation (ILO). It excluded those not engaged in economic activities and not searching for a job from the list of unemployed people.
Including such people, the actual number of unemployed people may exceed even 10 million, said economists.
Dr Fahmida Khatun, executive director at the Centre for Policy Dialogue (CPD), said the economy had seen slower employment growth since the adverse impacts of Covid-19. "Some sectors recovered the impacts of Covid-19, and some of them are thriving."
She said a huge number of people had lost their jobs due to Covid-19 in city areas. "The BBS counted them as those who are out of the labour market to reduce the unemployment rate and the number of unemployed people."
The economist also said industrialisation did not expand due to several reasons, including the lack of financing, austerity by the government, restrictions on imports, and the pressure on exchange rates.
She urged to ensure a good business environment as well as restore trust and confidence in business to ensure the expansion of industrialisation, which would increase employment and income opportunities.
The BBS report revealed that around 6.26 million working-age people remained underutilised as 1.17 million did not participate in the labour force due to the absence of proper job opportunities.
Another 2.63 million are doing jobs having fewer working hours than the standard measurement of 40 hours a week.
The labour force participation rate dropped to 60.9 per cent in 2023, which was 61.20 per cent in 2022. The rate for males increased to 80.7 per cent in 2023 from 80 per cent in 2022. But it dropped to 41.5 per cent for females from 42.77 per cent in 2022.
The agriculture sector accommodates 44.42 per cent of the labour force, the highest among all sectors. The share of the sector decreased slightly from 45.4 per cent in 2022.
The share of industry reached 17.26 per cent in 2023 with an increase from 17 per cent in 2022. Besides, the share of the service sector increased to 38.32 per cent in 2023 from 37.6 per cent in 2022.
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