Bangladesh’s path to economic stability

Bangladesh, a nation with a remarkable growth trajectory, now finds itself grappling with a pressing issue that threatens its economic stability--a severe unemployment crisis. With an increasing population and limited job opportunities, the country must take urgent measures to address this crisis and ensure a brighter future for its citizens.

Here, unemployment brings the chain of vicious circle of poverty. In Bangladesh, investments are low, so it is low investment--low employment--low income--low saving--low productivity and vice versa.

The first and most important effect of unemployment in rural areas is migration to urban areas. Most of those are young and unmarried and their targeted city is Dhaka. Unemployment encourages crimes. People violate law if they don’t have enough money to lead their life. People have poorer health because they don’t have enough money to fill their nutritional demand.

Be it a developed or underdeveloped country, every country has more or less unemployed people. But in our country many people blame the higher number of jobseekers for the unemployment.

Unemployment increased to 2.59 million in the first quarter (January-March) of 2023, up from 2.32 million in the last quarter of 2022, according to the quarterly data from the Labour Force Survey released by the Bangladesh Bureau of Statistics (BBS) recently. The rate of unemployment is currently 3.51 per cent. There are an estimated 7.36 crore employable people in the country whereas 7.11 crore people are currently employed. Of the total employed, 4.65 crore are men and 2.46 crore are women. Also, of the total employed, 3.19 crore people are employed in the agriculture sector, 1.22 crore in the industrial sector, and 2.69 crore in the service sector.

The unemployment rate in Bangladesh declined to 3.6per cent in 2022 mainly riding on an upward trend in women’s and youths’ participation, down from 4.2per cent reported in the previous survey conducted in 2016-17.

Employment in Bangladesh refers to a situation where individuals who do work for a wage, salary, commission, tips or any other pay, even if only for one hour in the previous week. If the answer is “no” then the person is unemployed.

Bangladesh’s population has been rapidly growing, straining the available job market and creating a significant mismatch between the demand and supply of employment opportunities. The government needs to proactively address this demographic challenge and create avenues for sustainable job creation.

The country’s heavy reliance on the ready-made garments (RMG) industry, while driving economic growth, has left Bangladesh vulnerable to external shocks. Diversification is essential to reducing unemployment by promoting sectors such as technology, agriculture, services, and manufacturing. This will create a more balanced and resilient job market. Insufficient investment in education and skill development programmes has resulted in a mismatch between the skills possessed by job seekers and the requirements of the job market. Enhancing the quality of education and vocational training will equip individuals with the necessary skills to meet industry demands, fostering employment opportunities.

Unemployment perpetuates poverty and income inequality within the society. Individuals and families unable to secure employment struggle to meet their basic needs, leading to social and economic disparities. Addressing unemployment is crucial to ensure a more equitable distribution of wealth and opportunities.

High unemployment rates can fuel social unrest and increase crime rates. Frustration and disillusionment among the unemployed can lead to social tensions, hampering public safety and overall stability. Resolving the unemployment crisis is essential for maintaining social harmony and creating a secure environment for all.

Limited employment opportunities force skilled individuals to seek better prospects abroad, resulting in brain drain. The loss of talent and human capital further exacerbates the unemployment crisis. Additionally, internal migration to urban areas in search of employment puts strain on resources and infrastructure. Creating attractive opportunities within the country will help retain talent and mitigate the adverse effects of brain drain and migration.

The government must create an enabling environment for entrepreneurship and small business development. Favourable policies, access to financing, and business incubation programmes will encourage innovation and job creation. Empowering individuals to start their own ventures will contribute significantly to employment generation.

Strengthening the education system and prioritizing vocational training aligned with industry needs is crucial. Collaborative efforts between the government, educational institutions, and the private sector can bridge the skills gap and equip the workforce with in-demand skills, increasing employability.

Diversifying the economy and attracting foreign investment in sectors beyond the RMG industry is essential. Encouraging investments in technology, manufacturing, agriculture, and services will create a resilient job market and reduce dependency on a single sector. Collaboration between the government, private sector, and civil society is vital to tackle the unemployment crisis effectively. Public-private partnerships can drive innovation, create job opportunities, and ensure sustainable economic growth. Shared responsibility and coordinated efforts will yield better outcomes.

The writer is a journalist. He can be contacted at [email protected]