Home ›› 07 Aug 2022 ›› Opinion
In the macroeconomics context, a good employment rate in an economy is essential in respect of the development journey. The poverty rate is directly connected with the employment rate. When the employment rate rises, the poverty rate falls. As Bangladesh aims to fulfill Sustainable Development Goals (SDGs) by 2030, the country has to eliminate poverty. Among the 17 goals in SDGs, the first goal has been titled ‘No Poverty’.
Besides, other goals that are titled as Zero Hunger, Good Health and Well-Being, Decent Work and Economic Growth are related to employment. So, there is no alternative but to create employment to reach the goal of achieving SDGs.
An economy faces different types of unemployment. Frictional unemployment, seasonal unemployment, cyclical unemployment, structural unemployment, technological unemployment and disguised or hidden unemployment. Now, the cyclical and disguised unemployment rate in Bangladesh is on the rise because of the current economic situation. There are around 1.15 lakh disguised unemployed people in Bangladesh, the study titled “Study on Employment, Productivity and Sectoral Investment in Bangladesh” was done by the finance division. Such employment does not contribute to the output of an economy and is almost akin to a form of unemployment.
As per "Population and Housing Census 2022, Bangladesh's population stands at 16.52 crore excluding expatriates with an annual population growth rate of 1.22 per cent, a lower growth rate than the previous census. As Bangladesh is branded as an overpopulated country in the world, the decreasing growth rate deserves appreciation. The economy is in trouble with a huge population size. Any state has to take responsibility for arranging work for its unemployed people.
If any economy fails to create enough employment opportunities for the people, the economy concerned will have to face a turbulent situation. According to the census done recently, the working-age population (aged between15-59) in Bangladesh makes up around 65.15 per cent of the total population. It may be mentioned here that the age of the working age population globally is between 15-64. Bangladesh now has to integrate the jobless people, who fall under working age, with formal and informal working opportunities.
The unemployment situation in Bangladesh is not as bad as its peer economies. Once, Bangladesh got a wide range of appreciation in respect of the unemployment rate from the International Labour Organization (ILO). The ILO in its study titled “World Employment and Social Outlook: Trends 2019” said that the unemployment rate in Bangladesh looks better than the global average. According to the study, the global average unemployment rate was recorded at 5.6 per cent whereas Bangladesh and other Asia and Pacific nations had an unemployment rate of around 3.6 per cent.
As defined by the ILO, people who are out of work, want a job, have actively sought work in their previous jobs and are available to start work within the next fortnight come under the unemployed category.
Despite the labour watchdog showing appreciation for the unemployment rate in Bangladesh, the youth unemployment rate is significant. Compared to 1993-94, youth unemployment has doubled according to the labour force survey 2016-2017. The youth aged 15-29 should be integrated with employment for economic progression. But, their involvement with formal and informal work is rarely seen.
According to media reports, a significant proportion of the educated youths are unemployed. During the Covid-19 pandemic times, the educated youth could not join work resulting in a rising unemployment rate among them. Their long wait for jobs created havoc in the economy. Besides, approximately two crore people were unemployed during the pandemic period.
The Asian Development Bank and the International Labour Organization jointly revealed a report styled “Tackling the Covid-19 youth employment crisis in Asia and the Pacific” recently. According to the report, around 1.7 per cent youth lost jobs on a long-term basis in Bangladesh, 6.1 per cent India, 2.3 per cent in Pakistan, 0.2 per cent in Nepal and Sri Lanka.
Every Five Year Plan takes extensive measures in managing jobs for the youth. According to labour force survey 2017, about 27 per cent was the youth of the total population. And the unemployment rate was 10.6 per cent.
The reasons behind being unemployed after graduation are many. The majority of the graduates hailing from the country’s educational institutions are considered unfit for many of the jobs available. According to relevant statistics, the unemployment rate among university graduates is quite alarming in Bangladesh. A World Bank report released in 2019 said that one out of every three graduates was unemployed even before the pandemic in Bangladesh. The graduates who are in the category of youth are not equipped with need-based skills for the concerned field.
The world is moving fast technologically ahead of the fourth industrial revolution. To cope with the modern world, the graduates and undergraduates have to be imparted with skills necessary for the job market. Bangladesh’s performance in respect of fetching foreign remittance is not admirable at all. Due to sending unskilled and semi-skilled labour force abroad, the desired amount of remittance does not get included in the economy.
Currently, the international labour market demands a skilled labour force but Bangladesh lags far behind. An English language business daily recently reported that among the expatriate workers, about 62 per cent are unskilled, 36 per cent are semi-skilled and only 2 per cent are skilled.
Bangladesh aspires to become an upper-middle-income country and a developed country by 2031 and 2041 respectively.
To attain prestigious dignity, the government has chalked out various programmes. As part of the move, the second strategic plan has been drafted. To create scopes for decent work for unemployed people, which helps to eliminate poverty, has become urgent. It is essential to know that every year 18.4 lakh people have to be connected with employment to achieve SDGs. Five lakh people have to secure jobs abroad.
The government recently came up with the “National Employment Policy 2022”. The policy aims to bring 30 million unemployed people under the umbrella of the employment network by 2030, the year of achieving SDGs. In four years, around 56 lakh people would be upgraded technologically. According to the policy, the country has around 15.2 million unemployed people; of them, 17.75 per cent belongs to disguised unemployment. There are millions of able-bodied people without work. The rate of job creation in Bangladesh is 3.32, the policy said.
The eighth five-year plan set targets to generate additional domestic employment 1.61 million by FY 2023, 1.72 million by FY 2024 and 1.80 million by 2025 and additional overseas employment of 0.65 million, 0.69 million and 0.72 million in the same fiscal years. Modernization of the workforce is of vital importance. The National Employment Policy should focus on the modernization of manpower. An economy like Bangladesh needs skilled manpower for jobs at home and abroad.
The writer is an economic affairs analyst. He can be reached at: mazadul1985@gmail.com
