Private sector employment in dire straits; youths should think of alternatives

Bangladesh has been grappling with unemployment since its inception. Young jobseekers face tremendous challenges transitioning from school to work due to a lack of in-demand skills, experience, youth-friendly employment opportunities, and limited career guidance.

The current volatile economic situation and the effect of Covid-19 pandemic have triggered one of the worst private sector jobs crises since 2020. There is a real danger that the crisis will increase poverty and widen inequalities, with the impact likely to be felt for years to come.

Earlier, job circulars from private sector in Bangladesh were published on a regular basis, it is not happening anymore now-a-days. Employers and investors say the volatile exchange rate, increased fuel prices and transportation costs made the employers and investors ponder about many additional factors before spending, which halted fresh recruitment.

A report published in The Business Post (TBP) on Monday reveals that the business conglomerates are now reluctant to recruit new employees, and some have also postponed their ongoing recruitment process. According to the International Labour Organization (ILO), Bangladesh ranked 2nd out of 28 countries in the Asia-Pacific region in 2018 for having the highest level of educated unemployment rate.

The ILO World Employment and Social Outlook – Trends 2022, forecasted nearly 5 per cent of Bangladesh’s total workforce would remain unemployed in 2022, which is 0.6 per cent higher than the pre-pandemic period. It was 4.4 per cent in 2019. In such an unstable situation, shouldn’t the youth think of alternatives?

Prime Minister Sheikh Hasina often urges the young generation to become entrepreneurs instead of chasing after jobs after wrapping up their academic lives. The government has taken some proactive measures to develop entrepreneurial skills among the youth.

The prime minister also stresses the government's initiatives of providing technical education and vocational training to the young people and making arrangements for different offline and online opportunities. The prime minister has also asked the officials concerned to pay special attention to the female entrepreneurs to help them expand their initiatives.

The government allocated a separate fund in the "Start-Up Programme" budget so that the young generation can take this opportunity. But in reality, is any such field being created? Regrettably, Bangladesh stood at the bottom 18th of a global ranking on digital environment and support systems for entrepreneurs, reflecting poor opportunities and lack of congenial atmosphere for them to thrive in the country, according to a new global report.

A global index of digital entrepreneurship systems report, developed by the Asian Development Bank (ADB) on September, 2022, said Bangladesh was ranked 96th among 113 economies and scored less than Sri Lanka and India.

Bangladesh, moreover is lagging behind in terms of digital connectivity including internet that could not be expanded across the country like that of Dhaka and Chattogram.

A challenge lies in creating and sustaining youth motivation, confidence, and perseverance. We found that the youths lack motivation and confidence if they are not given the correct guidance and support. Seeking job opportunities, especially at a younger age, and with the added responsibility of providing for the family, can be a daunting task.

The authorities concerned should make more entrepreneur-friendly fiscal policies and adopt financially-supportive measures for fresh entrepreneurs. The government should remove the burden of existing tax and VAT (Value Added Tax) on fresh and small entrepreneurs as it is hindering the sector from flourishing as expected.

There is no shame in doing something ourselves, rather we should all encourage our young generation about entrepreneurship. Bangladesh now needs to do everything it can to stop this jobs crisis from turning into a social crisis. Reconstructing a better and more resilient labour market is an essential investment for future generation.