Addressing the worrying unemployment problem

It is well-nigh impossible to get any credible, updated official data about the unemployment situation in Bangladesh. Defining unemployment also involves a complex exercise. Here, under-employment, 'disguised' unemployment and self-employment in un-remunerative conditions, are found to be equated with employment. That makes it all the more difficult to gauge the real extent of 'unemployment' in Bangladesh. However, the hard fact is that a large percentage of the workforce in the country remains unemployed. In addition, a very large number of young people are entering the job market every year while the economy is unable to create enough new jobs to cope with it. Thus, the problem continues to aggravate. Bangladesh, according to a report by an international organization, is placed in the twelfth position among the top-20 countries in the world where unemployment is rising. According to another estimate, the number of the unemployed in Bangladesh is now estimated at 30 million while every year some 2.0 million young people are entering the job market and only about 0.7 million of them are getting employment. This would otherwise indicate that nearly 27 per cent of the country's population remains unemployed now. The number of the 'disguised unemployed' -- an economic term meaning underemployed people or employed to a degree less than their potential -- is estimated by some recent studies, to be about some 32 per cent. The unemployment situation is considered to be worsening, particularly for reasons of inadequate investments in the economy and under-utilization of capacities in the industrial sector. The large number of unemployed people in the workforce gives an idea of the dependency ratio, implying that the support that the employed or actively engaged people in income-generating economic activities, have to provide, in one way or other, to those belonging to the working-age population who are unemployed or under-employed. Employed persons not only consume from the economy but they also contribute to it through their engagement in various jobs, adding value to the activities in the real sectors and different service-providing jobs. The unemployed people, in contrast, only live off the economy or their families and society. They turn out to be an economic burden. This is not any deliberate choice on their part. This is the situation they are forced to accept because of the lack of employment opportunities. They are a very potent source of tension and turmoil, politically and socially. The linkage between unemployment and crimes is also obvious. Addressing the massive unemployment problem, therefore, merits an urgent and serious priority. The government will need to act effectively to make a dent in the massive unemployment problem sooner rather than later. For that matter, its prime task should be to facilitate and raise the level of investment. Each of the constraints, now impeding actual investment activities, has to be addressed. The overall investment climate, both for local and foreign investors, in the country has to be improved. This will, in turn, accelerate the pace of economic activities on a sustained basis in order to make the desired impact on the unemployment situation. However, there is also a need to be clear about the policies to be pursued to create employment opportunities. New enterprises that will absorb the unemployed in an increasing number, particularly the labour intensive ones, should be identified and pro-actively encouraged. By building and operating a large number of training institutions, the government can also make a big contribution towards making the workforce more suitable for employment in productive sectors. Such institutions will be able help to train the unemployed people in different vocations, enabling them to take up employment in the country, go abroad for work or to engage in rewarding self-employment schemes. In this context, government's adequate spending for skill development is imperative.