Rising Youth Unemployment in Bangladesh: A 15-Year Trend Under Authoritarian Rule

Over the past 15 years, Bangladesh has witnessed a troubling escalation in youth unemployment, with recent data revealing a relentless increase in the youth unemployment rate, which has peaked above 16%. In 2023, youth unemployment in Bangladesh stood at 15.74%, according to the World Bank's collection of development indicators based on officially recognized sources. This figure, sourced in November 2024, underscores a persistent issue that has worsened under an authoritarian governance framework. The youth unemployment rate has surged, driven by a combination of economic and structural factors. According to the Bangladesh Bureau of Statistics (BBS), nearly 800,000 graduates were unemployed in 2022, underscoring the disconnect between educational outcomes and labour market needs. The current youth unemployment rate is approximately three times higher than the national average, highlighting the daunting challenges young people face in securing meaningful employment.

This rise in unemployment is alarming, affecting both the economy and the broader socio-political landscape. It points to deep-rooted issues in governance, policy formulation, and economic structure. The prevailing governance framework has stifled political competition, allowing policy failures to fester unchecked, thereby exacerbating the unemployment crisis among the nation’s youth.

Corruption and Governance Issues

Corruption remains endemic in Bangladesh's governance, pervading almost every sector. The centralization of power has enabled corruption to thrive, as mechanisms of accountability and transparency are often lacking. This has skewed job placements and business opportunities, with hiring practices frequently favouring individuals with political connections. For many educated youths, lacking such ties means facing significant barriers to securing positions despite their qualifications. Furthermore, rampant corruption has deterred both local and foreign investment in diverse sectors, stifling economic growth and, consequently, job creation for young people.

Skills and Education Mismatch

Despite the increasing number of graduates in Bangladesh, there is a glaring mismatch between the skills they acquire and those required in the job market. The World Bank's recent report on Bangladesh paints a bleak picture of the employment landscape for young people, particularly among those with higher education. The unemployment rate among graduates has tripled over the past nine years, largely due to a lack of job opportunities in the formal private sector. Even the booming garment industry—which contributes nearly half of the country’s total revenue—accounts for only a fraction of formal private-sector jobs, offering just one out of every twelve positions.

As the education system fails to align with the evolving needs of both local and global industries, students continue to pursue tertiary degrees more for social prestige than for practical career paths. The proliferation of private and public universities has not kept pace with industry demands, resulting in graduates who lack job-ready, industry-specific skills. Employers frequently report difficulty finding qualified candidates, further exacerbating unemployment among educated youth.

Lack of Economic Diversification and Industrial Policy

Bangladesh's economic policy has historically concentrated on low-skill, labour-intensive industries, particularly the garment sector. While this sector significantly contributes to the national economy, it is incapable of absorbing the increasing number of educated youth seeking specialized roles. The government has failed to diversify the economy or develop high-value industries capable of providing jobs for skilled young people. Absent policies that promote diversified industrial growth—such as incentives for technology, finance, and green industries—the job market remains constrained, leaving a vast pool of educated youth with limited options.

Weak Employment Policies and Job Market Regulation

Employment policies in Bangladesh have lagged behind the evolving workforce landscape. The job market is predominantly characterized by informal employment, contract work, and low-security positions, which fail to meet the aspirations of educated youth seeking stable, growth-oriented careers. Weak job market regulations further exacerbate the problem, as they do not adequately protect workers’ rights or ensure equitable hiring practices. Without robust employment policies that encourage companies to hire and train fresh graduates, many young people find themselves without meaningful employment opportunities or clear career development pathways.

Wrong Investment Priorities

The government’s investment strategy often prioritizes short-term, politically motivated projects over sustainable, job-creating initiatives. Large infrastructure projects, while potentially beneficial, have not necessarily translated into increased employment for educated youth. Additionally, there has been a glaring lack of investment in sectors that could offer high-quality jobs, such as technology, research, and innovation. This misalignment in investment priorities means that despite rising public spending, the tangible impact on youth employment remains minimal, underscoring a significant policy gap.

Inadequate Support for Entrepreneurship

Entrepreneurship represents a potent avenue for job creation, yet Bangladesh has not sufficiently nurtured young entrepreneurs. High costs, bureaucratic obstacles, and limited access to finance deter many young people from launching their own ventures. The absence of effective policies—such as startup grants, training programs, and low-interest loan access—means that the entrepreneurial potential of educated youth remains largely untapped, aggravating unemployment levels.

Political Influence on Employment Opportunities

In an authoritarian context, political influence plays a crucial role in employment, particularly within government and public sector jobs. Recruitment practices in these sectors are often tainted by political favouritism, with placements frequently awarded to individuals aligned with the ruling party or those possessing political connections. This not only restricts opportunities for qualified youth lacking such ties but also undermines public trust in the integrity of recruitment processes. The entrenchment of political influence in employment exacerbates the frustration of young people seeking jobs based on merit.

Need for Policy Reform and Structural Changes

The rise in youth unemployment in Bangladesh over the past 15 years reflects a complex interplay of policy failures and governance shortcomings. Addressing this crisis necessitates comprehensive reforms, including:

• Revamping the education system to better align with market needs, focusing on practical and digital skills.
• Promoting economic diversification to foster job creation in high-skill sectors.
• Strengthening employment policies and market regulations to protect workers’ rights and ensure fair hiring practices.
• Supporting entrepreneurship through conducive financial policies and streamlined bureaucratic processes.
• Implementing transparent, merit-based recruitment practices in both public and private sectors to curtail political influence over employment.

Tackling these interconnected challenges requires a steadfast commitment to transparency, inclusivity, and long-term strategic planning. Without such structural changes, the spectre of rising youth unemployment will continue to haunt Bangladesh’s economic landscape, stifling its potential for sustainable growth and social stability.

-Human & AI Generated