The share of unemployed tertiary-educated youth within the total unemployed population in Bangladesh both in industry and service sectors, has increased in ten years since 2013 as many struggled to find jobs that match their skills and educational qualifications.
According to the latest World Bank (WB) report, nearly 12 lakh people in the country may face extreme poverty this year due to job losses and declining real wages. It added the jobless rate among graduates was 27.8 percent in 2022 from 9.7 percent in 2013.
The report further said that Government jobs can accommodate a little over 5 percent of the total workforce, said the Washington-based multilateral lender in its report, titled “Bangladesh Development Update”. Besides, the private sector is not generating enough employment opportunities; the young entrepreneurs face challenges in pursuing entrepreneurship due to a lack of resources, financing and mentorship. Limited access to financing due to limited collateral and gender discrimination by banks is also a major constraint for female entrepreneurs in expanding their businesses and exporting products.
Besides, discrimination in pay, upward mobility and hiring practices hold back female employment, noted Abdoulaye Seck, World Bank country director for Bangladesh and Bhutan while launching the report at its Dhaka office recently.
The WB’s analysis indicates that young people, particularly in urban areas, face significant challenges in finding a job. It also said the FDI remains low and the business environment has significant shortcomings, including challenges in accessing finance and energy, high costs of doing business and cumbersome customs and trade regulations.
Unfortunately, the employment landscape is also changing as members of the experienced and skilled workforce are compelled to accept very low-paid jobs or engage in small-scale trading just for their survival. This wastage of qualified professionals is not only negatively affecting the country’s economy, but also increasing frustration in society.
We think the urgent task before the interim government led by Professor Muhammad Yunus is to lessen the rising level of resentment and insecurity among the workers and employees alike very carefully.