Nearly half of Bangladesh's working-age population outside labour force: ILO

Highlights

• Nearly 50% of Bangladesh's working-age population is outside the labour force, indicating underutilisation of its potential, says ILO
• Labour force participation: 78.5% for males, 21.25% for females, highlighting gender disparities 
• Youth vulnerability, particularly among women, and informal, low-productivity jobs in agriculture hinder progress
• The NEET rate stands at 30.9%, with 49.3% for females
• ILO calls for prioritising skills development, youth employability, and decent jobs for women and marginalised groups
• Geopolitical tensions, climate change costs, and unresolved debt issues straining global labour markets

Nearly half of Bangladesh's working-age population remains outside the labour force, underscoring a significant underutilisation of the country's demographic potential, a new report by the International Labour Organization (ILO) has revealed.

According to the ILOSTAT, the labour force participation rate stands at 49.5%, with significant gender disparities – 78.5% for males compared to just 21.25% for females, as noted in the World Employment and Social Outlook 2025, released today (16 January).

The report highlights Bangladesh's ongoing challenges such as high youth vulnerability, particularly among women, along with the prevalence of low-productivity jobs and informality, including within the agricultural sector. These issues continue to undermine both economic progress and social justice.

Worryingly, the NEET (Not in Education, Employment or Training) rate has reached 30.9%, with 11.1% for males and 49.3% for females.

Given these challenges, ILO Bangladesh Country Director Tuomo Poutiainen emphasised the need for prioritising skills development, improving youth employability, and establishing effective labour market governance aligned with international standards to promote employment and decent work.

"To achieve inclusive and sustained economic growth, and realise its ambition of becoming a middle-income country, Bangladesh must prioritise active labour market policies and the creation of decent employment opportunities, particularly for youth, women, and marginalised groups," Poutiainen said. 

The ILO also warned that geopolitical tensions, the increasing costs of climate change, and unresolved debt issues are placing additional pressure on global labour markets. With the global economy slowing, labour markets are struggling to recover fully.

The report further noted that, despite inflation decreasing, it remains high, eroding the value of wages. Real wages have only seen increases in a few advanced economies, while most countries continue to recover from the effects of the pandemic and inflation.