The employment rate of a country denotes the overall development of that country. The economic stability of a country depends largely on employment as it puts all the pieces of an economy together, including improvement in education, health, lifestyle and access to all basic needs.
Employment ensures better living and therefore holds the grip of the whole demand and supply ecosystem. The process, as an outcome, contributes to the upliftment of overall GDP growth.
Bangladesh, a country with a mostly young population, has succeeded in being one of the fastest-growing economies in the world. As a country with economic growth in a rapid approach, the labour force is required to be skilful, adaptive and efficient. In the case of Bangladesh, the scenario is quite the opposite; as a result, unemployment has become a crucial issue in the growth of the economy.
Currently, our country is getting the advantages of a demographic dividend country1. The working-age population is larger in number in comparison with the non-working-age population. Using different indicators of economic growth such as crude birth and death rate, labour force and population growth rate, saving and investment, the timing of demographic dividend etc., the phase of demographic dividend might last until 2040. Bangladesh has a timeline of 18-20 years to make use of this population, as after this phase non-working population of the country will increase, which includes children and aged people. Even if employment is offered to all, it is almost impossible for economic growth to boom at that period of time. Hence, now is the time for Bangladesh to use the young population for sustainable economic growth.
According to reports by the International Labour Organization (ILO), the youth unemployment rate of the country is 10.6% at present. The employment rate significantly decreased during the pandemic, and the labour market has yet to overcome the situation. The rate of youth unemployment is double that of the national unemployment rate. World Bank data indicates the increasing rate of people with advanced education, as the rate in 2016 was 9% which increased to 11% in 2017. During the pandemic, the total unemployment rate increased from 4.4% to 5.4% within only one year, from 2019 to 2020. Although the situation slightly improved to 5.2% in 2021 but far less than the previous rate. As per a study by the Bangladesh Institute of Development Studies (BIDS), in 2019, 33.19% of graduate students were unemployed. According to the same study, 66% of the students from affiliated colleges of the National University are unable to get themselves into the job market. 34.3% of graduates with a master’s degree and 36.6% of students with an undergraduate degree are unemployed. There are more chances in the job market for the less or limited educated people as they have some practical knowledge of work or are flexible in case of working in different industries unrelated to their subjects or previous experiences.
During the pandemic, as the whole world was going through a crisis, most industries were laying off their employees either because of a decrease in supply for particular goods and services or because they were unable to afford employees with the loss. Migrant workers in our country at that time were seriously affected because of such layoffs. According to BRAC reports, nearly 22% of the returned workers lost their jobs permanently. Almost a total of 666,000 migrant workers returned to Bangladesh during the pandemic, and in most cases, they were unable to return to their workplaces throughout the pandemic. The number of unemployed people increased both nationally and internationally.
The job market is in a constant volatile state for a period. There remains an explicit imbalance between the supply and demand for jobs which is increasing highly with each passing year. Moreover, it’s not only the job market imbalance but the knowledge gap between educational institutions and the job sectors that make it harder for people trying to get into the job market.
In Bangladesh, especially practical subjects are not taught adequately. The theories taught in the bachelor’s and master’s degrees do not incorporate the technical skills required for different sectors. Without practical knowledge, it becomes impossible for graduates to find a job. Again, in the case of school graduates, the quality of education is very low and does not fit the job market.
The expectation for a better job also plays a pessimistic role in the job market. Lack of skill development-based training creates a barrier to practical experiences for job seekers. As a result, even if they get a job, survival in a fast speed work culture remains a concerning doubt. Different sectors of the workplace have the same problem of lack of adaptability and creativity. In most cases, Ready Made Garments (RMG) workers are just used to one type of work and cannot survive in a different section. The migrant workers of our country earn a lot less than their efforts just because of a lack of skill upgradation and knowledge improvement.
With the country’s industrialisation from an agricultural one, different sectors have become employment hubs for all. To minimise the unemployment issue in the country, the government has issued different policies to help people come out of the problem. The National Employment Policy 2022 addresses the issues causing barriers to employment. It aims to create nearly 30 million jobs by the year 2030. According to Ministry of Labour and Employment officials, the policy will motivate men and women for productive employment and skill development. Recommended policies for unemployment issues –
< Quality education is required to build a qualified labour population. As per Centre for Policy Dialogue (CPD) reports, The teacher-student ratio was 38:1 in 2018. According to the data from Bangladesh Primary Education Annual Sector Performance Report, the number of vacancies for Assistant teachers was 32,853 in 2019. This demonstrates the lack of guidance children have from their educational institutions and later suffer in the job markets. Proper training in technical knowledge and implementation in the job field must be ensured for all. Budget allocation for the education and skill development sector is a must in order to upgrade the education system and way of education.
< Centralisation of the country causes the metropolitan cities to be the job hubs of the country. This makes the opportunity concise, and people from the rural areas move to the urban areas for a job and a better living, ultimately making the job market more competitive and cities crowded. Job opportunities should be available for every district with proper planning and not limited only to the urban side.
< Different training centres are made in different districts of the country along with trainers. These steps from the government should be used in a proper way to ensure the maximum benefit of people from these centres.
< Many people in our country are working in the informal sector, especially women. All these people should be given recognition for their work, and these should be counted in the formal economy and employment of our country. Along with the increase in the economic growth of our country, these people should be counted as working-class people.
The author is the coordinator for the CUBE (Coalition for Upgrading Bangladesh Economy) initiated by Youth Policy Forum (YPF).
- Demographic dividend refers to the growth in an economy that is the result of a change in the age structure of a country’s population. The change in age structure is typically brought on by a decline in fertility and mortality rates.
Author- Zahrah Rahman
