Unemployment in Bangladesh: Structural Realities, Root Causes and the Road

Ahead.

Authored by Dr Raju Ahmed Dipu | BangladeshUnemployment.com

A Nation’s Growth Shadowed by Jobless Growth

Despite remarkable GDP growth and export expansion over the past two decades, unemployment remains one of Bangladesh’s most persistent challenges. While the official unemployment rate is estimated at 4.2%, this figure masks widespread underemployment, skill mismatches, and youth disillusionment. With over 2.5 million new jobseekers entering the market annually, the country faces a structural employment crisis that could hinder its ambition to become an upper-middle-income economy by 2031.

Labour Market Overview (2024–2025)

???? Source: Bangladesh Bureau of Statistics (BBS), ILO 2024

Root Causes of Unemployment: A Multi-Dimensional Breakdown

 1. Education and Skill Deficit

• A large proportion of university graduates are ill-equipped for the real job market, with over 60% lacking practical skills.

• The education system emphasises theoretical knowledge over technical, vocational, and digital training.

• Limited investment in TVET (Technical and Vocational Education and Training) restricts industrial alignment.

“There’s a disconnect between degrees and demands.” – ILO Bangladesh 2023

 2. Political & Institutional Barriers

• Nepotism and political favouritism influence government recruitment.

• Youth from marginalised communities lack access to state-backed employment networks.

• Political instability and crony capitalism deter foreign investment and SME expansion.

3. Weak Employment Policies & State Interventions

• Absence of a National Youth Employment Guarantee Policy.

• Delayed implementation of employment-friendly infrastructure outside major urban zones.

• Limited start-up financing, especially for rural entrepreneurs and women.

 4. Industrial Concentration & Urban-Centric Growth

• Over-concentration of employment in RMG (Ready-Made Garments) and Dhaka-centric service sectors.

• Neglect of agriculture modernisation and regional manufacturing hubs.

• Poor logistics in northern and coastal divisions restrict industrial expansion.

 5. Technological Displacement without Digital Inclusion

• The rise of automation, AI, and e-commerce is displacing low-skilled workers.

• However, only 27% of jobseekers have digital literacy, creating a digital divide.

???? Source: ADB “Digital Skills for Inclusive Growth” Report 2023

6. Migration Mismanagement

• While migration supports over 10 million Bangladeshis abroad, many lack formal training, leading to low-wage, vulnerable jobs.

• Recruitment scams and exploitation remain rampant.

Strategic Recommendations: Pathways to Employment Resilience

 1. National Skills Acceleration Programme

• Establish 1 technical institute per upazila, offering industry-standard courses in coding, robotics, renewable energy, healthcare, and agri-tech.

• Partner with private sector and NGOs for certification and placement.

 2. Digital Employment Ecosystem

• Create a “One Youth One Skill” initiative under Digital Bangladesh 2031 Vision.

• Integrate platforms like BangladeshStartup.com, BrandsMega.com, and BangladeshUnemployment.com as B2B and skill marketplaces.

3. Employment Guarantee Scheme (EGS)

• Government-backed minimum employment for youth under 30 within 6 months of graduation.

• Mandatory internships and apprenticeships through public-private collaboration.

 4. Rural Entrepreneurship & Green Jobs

• Expand Green Economy employment: solar installation, EV repair, smart irrigation.

• Establish district-level youth cooperatives linked to banks and digital wallets.

5. Legal and Policy Reform

• Introduce anti-nepotism clauses in government recruitment.

• Mandate transparency in public hiring and digitisation of civil service exams.

Future Outlook: Bangladesh’s Employment Vision 2030

Conclusion: Nation-Building Beyond GDP

“True development means not only GDP growth but also dignity through decent work. Bangladesh’s youth deserve opportunity, not uncertainty.”
— Dr Raju Ahmed Dipu

As Bangladesh advances towards LDC graduation and SDG 8 (Decent Work & Economic Growth), employment must remain the top national priority. A well-integrated, decentralised and digitally-enabled employment ecosystem is not just desirable—it is essential.