Tackling youth unemployment in Bangladesh: A key priority for economic growth

With over a third of Bangladesh's population under 30, the nation holds vast potential for economic growth through its youth. Yet, youth unemployment remains a critical issue.

In 2022, 28% of graduates were unemployed, representing approximately 8 lacs of the total unemployed population. Many recent graduates struggle with underemployment, or find themselves in positions that do not fully utilize their skills due to a persistent "skills gap". This is a significant missed opportunity for Bangladesh's economy.

As an interim government steps in, there is both a responsibility and a timely opportunity to empower young people with meaningful employment and skill-building opportunities.

Understanding the Youth Employment Challenge

Despite growth in sectors like ICT, manufacturing, and services, the job market has not kept pace with the rising numbers of young people entering the workforce. Graduates also remain unemployed for extended periods. Nearly 20% wait for two years to secure a job, while 15% remain jobless for more than two years, as per data from the Bangladesh Bureau of Statistics (BBS). At present, Bangladesh has nearly 26 lakh unemployed people, with a staggering 83% of them—about 21.46 lakh—aged between 15 to 29.

Young graduates face a skills mismatch that leaves them unprepared for the roles needed in a rapidly modernizing economy. For instance, the ICT sector in Bangladesh has a critical shortage of skilled workers, while many graduates remain unemployed. This gap represents a major barrier to the nation's goal of becoming an upper-middle-income economy by 2031.

Additionally, around 68 lakh people are underutilized and suffering from underemployment, with 13.18 lakh of them being graduates. The issue of underemployment remains equally concerning, as many graduates find themselves in jobs that do not match their level of education or aspirations.

Quick Wins Through Skill Development

The interim government can begin addressing youth unemployment with quick, impactful actions. One strategy is to invest in short-term, high-demand skill development programs, particularly in fields like digital marketing, ICT, and logistics. A fast-tracked focus on skill-building would prepare young Bangladeshis to meet industry demand, particularly in high-growth sectors and in rural areas where employment options are more limited.

Further, incentivizing businesses to provide internships and apprenticeships for fresh graduates can make a substantial difference. Internships offer valuable on-the-job experience, a critical need in a competitive job market. If the government provides tax incentives or subsidies to companies offering such programs, businesses will be more likely to invest in young talent, thus closing the experience gap.

Supporting Youth Entrepreneurship

In regions with limited formal employment opportunities, fostering entrepreneurship can provide a sustainable solution. By improving access to microloans and reducing barriers to finance, the government can empower young people to start small businesses, boosting job creation and economic diversity. Programs that provide business training and mentorship can also help new entrepreneurs navigate challenges and scale their ventures.

A Strategic Long-Term Approach

Addressing youth unemployment requires more than immediate interventions. Bangladesh needs a long-term strategy that reforms education to match job market needs. Integrating vocational training into the national curriculum would equip students with the practical skills essential for today's economy. Critical thinking, problem-solving, and digital literacy are core competencies that will allow young people to adapt and thrive as the economy continues to evolve.

Public-private partnerships will be essential in creating such programs. Through collaboration with private industry, the government can ensure that training programs are relevant to the demands of the job market, increasing employability. A national job-matching platform, supported by both sectors, could bridge the employment gap by connecting job seekers and employers, particularly in rural areas where opportunities are scarce.

A Call for Collective Action

Youth unemployment is a challenge that requires a multifaceted approach. While policy interventions are essential, businesses, educational institutions, and local communities also have key roles to play. By investing in skill development, supporting youth entrepreneurship, and fostering collaboration between public and private sectors, Bangladesh can unlock the potential of its young population.

The Road Ahead

Empowering young people isn't just about reducing unemployment figures—it's about investing in the future of Bangladesh. If the interim government prioritizes youth employment now, it can lay the groundwork for a stronger, more inclusive economy. Bangladesh's youth are resilient, resourceful, and ready to contribute. With the right support, they can drive the nation towards a brighter and more prosperous future.

Md. Kamruzzaman, widely known as Babu Kamruzzaman, is a Special Correspondent at News24 Television. A seasoned business journalist and anchor, he specializes in analyzing business and economic affairs with over a decade of impactful reporting and storytelling.