Author: Kazi Mohammad Hasibul Haq
In the past year, Bangladesh’s labour market has faced such severe challenges that the employment-creation promises announced by the interim government have yielded only very limited results in practice. According to the Bangladesh Bureau of Statistics (BBS) quarterly data and the Labour Force Survey, the unemployment rate reached 4.63% in the October-December 2024 quarter, with the total number of unemployed people standing at approximately 2.73 million, an increase of about 1,70,000 compared to the previous year.
The situation is particularly alarming among youth and educated job seekers. Around 1.94 million young people aged 15-29 are unemployed, and the unemployment rate among university graduates and post-graduates stands at 13.54%. This high rate of educated unemployment clearly shows that mere academic qualifications are no longer enough; the lack of market-relevant skills and the limited availability of suitable jobs are making the problem more complex.
The overall labour market has shrunk, especially for women. Declining labour force participation has reduced the total number of employed persons, leading to lower productivity in the economy and widening income inequality. Analysts believe that without significantly increasing women’s participation, the prospects for sustainable employment growth remain limited.
During the interim government’s tenure, progress on creating decent (formal and protected) jobs has also been constrained. Various reports indicate that nearly 80% of workers remain employed in the informal sector, where jobs are insecure, social protection is virtually absent, and incomes are low. As a result, the real impact of the government’s announced job-creation projects has been minimal.
Economic obstacles persist as well. Slow domestic and foreign investment, restricted access to credit, and business uncertainty have hindered the establishment of new industries and large-scale job creation, causing delays in implementing declared employment programs.
In April 2025, the World Bank confirmed financing of US$850 million for Bangladesh, a significant portion of which is earmarked for social protection and employment generation. However, this funding is time-bound and will not have an immediate or sufficient impact on reducing unemployment in the short term.
The interim government has taken some initiatives, such as the “Skills for Employment Investment Program (SEIP)” and other training schemes, which aim to train 841,000 young people. Yet unless the quality of training, the quality of resulting jobs, and the transition from informal to formal employment are effectively addressed, the impact of these projects will remain limited.
A crucial point is that this situation will pose a major challenge for the incoming democratic government. The rising unemployment trend and the contraction of the labour market will place considerable pressure on the new government’s policy formulation and implementation capacity. If the new administration fails to deliver effective training and skill-matching for youth and educated unemployed individuals, increase women’s participation in the labour force, and incentivise micro, small and medium enterprises (MSMEs) as well as the private sector, social and political tensions are likely to grow.
In summary, the upward trend in unemployment during the interim government period- coupled with rising youth and educated unemployment, the dominance of the informal sector, and the decline in women’s labour-force participation- will constitute a critical policy, implementation, and social challenge for the forthcoming democratic government. The people expect that the new government will go beyond mere announcements and launch practical programmes that ensure decent jobs and social security for all.