Unemployment problem worsening
Tuesday, 13 July 2010
Kaniz Fatema
Bangladesh is, according to a study by an international organisation, in the twelfth position among the top twenty countries in the world where unemployment is rising. The number of the unemployed in Bangladesh now is, thus, estimated at 30 million. The way the rate of unemployment is increasing, it is feared that at this rate unemployment would soar to some 50 million by 2015.
Other credible estimates suggest that every year some 2.7 million young persons are becoming eligible for jobs. But only about 0.7 million of them are getting employment. A vast number of people among the working age group remain unemployed in Bangladesh.
Employed persons not only consume from the economy but also contribute to the economy through production activities and discharge of various services. On the other hand the unemployed ones only live off the economy or their families and society. They are not only liabilities in the economic sense, but also are considered to be a source of tension and turmoil, politically and socially. The linkage between unemployment and crimes is obvious. It is a priority for public policy actions in Bangladesh to address the unemployment issue very seriously before it turns worse.
Imaginative and effective actions on the part of the government are called for, in order to improve, overall, the investment climate in the country. This, in turn, will help accelerate economic activities and 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. New enterprises absorb the unemployed. But very high capital intensive enterprises employ a smaller number than the case with labour intensive ones that understandably employ a greater number. Therefore, enterprises with labour intensive character should be identified and encouraged.
In this context, the government can make a big contribution toward reducing unemployment by also building and operating a large number of training institutions to train the jobless ones in different vocations. This will enable them to become fit enough to take up employment in the country, to go abroad for doing jobs, or to engage in self-employment. Ample public spending -- and that too in a well-targeted manner -- for skill development is all the more necessary because the private sector may prefer not to invest in this area out of a consideration of low rate of return.
Bangladesh is, according to a study by an international organisation, in the twelfth position among the top twenty countries in the world where unemployment is rising. The number of the unemployed in Bangladesh now is, thus, estimated at 30 million. The way the rate of unemployment is increasing, it is feared that at this rate unemployment would soar to some 50 million by 2015.
Other credible estimates suggest that every year some 2.7 million young persons are becoming eligible for jobs. But only about 0.7 million of them are getting employment. A vast number of people among the working age group remain unemployed in Bangladesh.
Employed persons not only consume from the economy but also contribute to the economy through production activities and discharge of various services. On the other hand the unemployed ones only live off the economy or their families and society. They are not only liabilities in the economic sense, but also are considered to be a source of tension and turmoil, politically and socially. The linkage between unemployment and crimes is obvious. It is a priority for public policy actions in Bangladesh to address the unemployment issue very seriously before it turns worse.
Imaginative and effective actions on the part of the government are called for, in order to improve, overall, the investment climate in the country. This, in turn, will help accelerate economic activities and 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. New enterprises absorb the unemployed. But very high capital intensive enterprises employ a smaller number than the case with labour intensive ones that understandably employ a greater number. Therefore, enterprises with labour intensive character should be identified and encouraged.
In this context, the government can make a big contribution toward reducing unemployment by also building and operating a large number of training institutions to train the jobless ones in different vocations. This will enable them to become fit enough to take up employment in the country, to go abroad for doing jobs, or to engage in self-employment. Ample public spending -- and that too in a well-targeted manner -- for skill development is all the more necessary because the private sector may prefer not to invest in this area out of a consideration of low rate of return.