Assignment on

Discuss the problem of unemployment

in Bangladesh

Submitted to:
Professor Abdul Bayes

Course Teacher

Managerial Economics (MBA-512)

Section-01

Faculty of MBA & EMBA

Department of Business Administration

East West University

Submitted by:
Ishrat Jahan Dia

ID: 2022-1-95-093

DATE OF SUBMISSION: MAY 11, 2022

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 Table of Contents

Contents
Chapter 1: Introduction........................................................................................................................3
Chapter 2: Definition of Unemployment.............................................................................................3
Chapter 3: Bangladesh's Unemployment Situation..............................................................................3
3.1 Disguised Unemployment........................................................................................................3
3.2 Educated unemployment.........................................................................................................3
3.3 Regular unemployment...........................................................................................................4
3.4 Seasonal unemployment..........................................................................................................4
3.5 Various types of unemployment.............................................................................................4
Chapter 4: Bangladesh's current unemployment rate...........................................................................4
Chapter 5: Bangladesh's Unemployment Factors................................................................................5
5.1 Overpopulation........................................................................................................................5
5.2 Lack of capital.........................................................................................................................5
5.3 Lack of technical education....................................................................................................5
5.4 Natural disasters......................................................................................................................5
5.5 Political instability...................................................................................................................5
5.6 Agriculture dependency..........................................................................................................5
5.7 Corruption...............................................................................................................................5
5.8 Annihilate cottage industries..................................................................................................5
Chapter 6: The main causes of unemployment....................................................................................6
6.1 A shaky educational system....................................................................................................6
6.2 Lack of a skill development program.....................................................................................6
6.3 Inadequate technical and vocational education.....................................................................6
6.4 Lack of qualified teachers.......................................................................................................7
6.5 Poverty.....................................................................................................................................7
Chapter 7: The consequences of the unemployment crisis..................................................................7
Chapter 8: Covid-19 contributes to the rise of unemployment in Bangladesh.....................................8
8.1 Covid-19 creates graduate unemployment in Bangladesh....................................................8
Chapter 9: Solutions to Bangladesh's unemployment crisis.................................................................9
Chapter 10: Conclusion.......................................................................................................................9
Chapter 11: References......................................................................................................................10

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 Chapter 1: Introduction

Unemployment in today's world refers to a situation in which a person is unable to find work
and earn money. A person cannot support themselves without a good work. She or he must
rely on the help of others. He or she becomes a financial and social burden to the entire
family. As a result, Bangladesh is considered to have a major problem. Unemployment is one
of Bangladesh's most serious issues, as well as a global issue. In the entire world It exists in
every country on the planet. However, Bangladesh will suffer greatly as a result of this issue.

Chapter 2: Definition of Unemployment

Unemployed workers are those who have been unable to find work at the present wage.
When the unemployed situation occurs in an economy is called unemployment. Most of the
people in Bangladesh like to make money by employment. Unemployment and poverty are
interconnected. Unemployment inhibits the economic development of Bangladesh. The
economic prosperity of this country will not possible without educated and young people.
The unemployment rate in Bangladesh is calculated as the number of people actively looking
for work as a percentage of the labor force.

Chapter 3: Bangladesh's Unemployment Situation

3.1 Disguised Unemployment

It is seen in rural areas especially in the agriculture industry of Bangladesh. All individuals of
family labor on their farm. If one or two members stay idle their total production will remain
the same. Everything appears to be working, but the workers' marginal production is negative
or zero.

3.2 Educated unemployment

Despite having a diploma, they lack the necessary qualifications or willingness to work in an
existing position.

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3.3 Regular unemployment
In our country, some people remain unemployed all the time as they are idle or not getting
expected work.

3.4 Seasonal unemployment

Agriculture features a large number of seasonal workers because they are only needed for
sowing seeds and harvesting.

3.5 Various types of unemployment

In addition to the aforementioned types of unemployment, Bangladesh has another sort of
unemployment. These include technical, frictional, and voluntary unemployment, among
others.

This country has lots of workable people. If BD uses them correctly and creates a chance for
everyone, it will be developed rapidly. This nation’s economy will be a role model in the
world within couple of year.

Chapter 4: Bangladesh's current unemployment rate

The unemployment rate, which is the number of unemployed persons divided by the total
number of people in the labor force, is the most used measure of unemployment. The
unemployment rate in Bangladesh is calculated as the percentage of the labor force that are
actively looking for work. Bangladesh's unemployment rate is expected to reach 3.6 million
by 2022, according to the International Labor Organization. Bangladesh's unemployment rate
would continue at 5.0 percent in 2022, up 0.6 percent from pre-pandemic levels, according to
the analysis.

Bangladesh's unemployment rate was 5.2 percent in 2021.

Bangladesh's unemployment rate was 5.30 percent in 2020, up 1.08 percent from 2019.

Bangladesh's unemployment rate was 4.22 percent in 2019, down 0.07 percent from 2018.

Bangladesh's unemployment rate was 4.29 percent in 2018, down 0.08 percent from 2017.

Bangladesh's unemployment rate was 4.37 percent in 2017, up 0.02 percent from 2016.

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 Chapter 5: Bangladesh's Unemployment Factors

5.1 Overpopulation
The country's high population growth rate and overpopulation are the main causes of
unemployment. The population continues to grow, yet there remains a lack of investment.
Bangladesh has an underdeveloped economy that is primarily dependent on agriculture. In a
developing economy, it is extremely difficult to employ everyone.

5.2 Lack of capital

Due to their lower per capita income, Bangladeshi individuals have limited savings. As a
result, capital formation is impossible or only achievable in modest amounts. Without capital,
there can be no investment or employment.

5.3 Lack of technical education

All sectors require trained employees. The majority of Bangladeshi workers lack sufficient
knowledge of current technology and skills.

5.4 Natural disasters

Every year, many individuals lose their jobs due to river erosion, floods, cyclones, and other
natural disasters.

5.5 Political instability

Political instability wreaks havoc on our social institutions, as does inept administration. It
makes people nervous about making fresh investments.

5.6 Agriculture dependency

Agriculture is the primary source of income for the majority of Bangladeshis. Agriculture has
a seasonal unemployment problem.

5.7 Corruption
Corruption exists at every stage of the business process. Because of corruption, foreign
investors are disappointed.

5.8 Annihilate cottage industries

Cottage industries are being wiped out in Bangladesh because they are unable to compete
with foreign industries. This results in joblessness.

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In addition to the reasons stated above, there are several other factors that contribute to the
unemployment problem. These are the-

 Insufficient investment
 Women are underemployed.
 Indolent individuals
 Inadequate industrial policy
 Policy of fiscal contraction
 Inadequate planning
 Artificial intelligence advancements
 reduce human work.

Chapter 6: The main causes of unemployment

6.1 A shaky educational system

For creating quality graduates, a theoretical as well as a hands-on education system is
required. It is unfortunate, but true, that the majority of Bangladeshi graduates have no or
little formal schooling. They have typically spent their academic lives memorizing books, as
a result of which they have become utterly disconnected from career-oriented education and
the abilities required for a bright future. As a result of our shaky educational system, we are
producing discredited graduates who are jobless and unable to contribute to economic
progress.

6.2 Lack of a skill development program

Our country's youth are constantly exhorted to "achieve good outcomes," but they are never
told to conduct thorough research or participate in skill development activities. Young people
as a result are unable to show their originality. As a result, skill development cannot begin at
an early age. Only by converting these ordinary kids into human resources will the country's
overall development be accelerated.

6.3 Inadequate technical and vocational education

Providing technical and vocational education to improve the youth's career-oriented abilities
is a common idea around the world. However, most technical and vocational education in

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Bangladesh is merely theoretical. The majority of technical institutes lack a hands-on
learning system. So, how can a technical student succeed? Furthermore, many technical and
vocational institutions and colleges have inadequate laboratory facilities for teaching hand-to-
hand skills. In many circumstances, a shortage of qualified teachers is a severe impediment to
proper education.

6.4 Lack of qualified teachers

In our nation, there is a phrase that "as the father is the son." Yes, if the teacher is inept, how
can he expect his students to be proficient? Our country's children began their education in
primary school. However, it is unfortunate but true that the quality of teachers in these basic
schools is poor. Many teachers, on the other hand, are working relentlessly to develop trained
human resources. The notion is that if a building's foundation is useless, you can grasp the
value of that building. Similarly, if our entire educational system is compared to a structure,
our primary school serves as the basis. If the foundation is laid by an inexperienced teacher,
the structure will fall. On the other hand, dishonest teachers are being recruited in
universities, putting the entire educational system on the point of collapse.

6.5 Poverty
The majority of our students come from low-income families. The majority of them are in a
state of flux in order to bring the day forward. As a result, even if they wanted to, they are
unable to get sufficient education and training. As a result, they fell behind in the
employment market and spent their days looking for work.

Chapter 7: The consequences of the unemployment crisis

 Unemployment creates a vicious cycle of poverty in Bangladesh. Bangladesh has low
investment, which leads to low employment and low income, as well as low saving,
low productivity, and low investment.
 The first and most important effect of rural unemployment is migration to cities. The
majority of them are young and single, and Dhaka is their target city.
 Unemployment increases criminal activity. If a person does not have enough money
to live, they will break the law.

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  People's health suffers as a result of a lack of financial resources to meet their
nutritional needs.

Chapter 8: Covid-19 contributes to the rise of unemployment

in Bangladesh
The COVID-19 pandemic is having a negative influence on Bangladesh's economy by
hurting the lives of millions of people and limiting their economic sources. Many people are
on the verge of losing their jobs. Specifically, the poorest part of the population has very little
or no savings.

People who work in private nongovernment education institutes are another group that has
been severely impacted. Because of the kids, many low-income schoolteachers in both rural
and urban locations around the country have lost their jobs. Many of them are being forced to
work in low-paying jobs. A new low class is emerging. Some private institutions are unable
to pay the fees. These schools' students are mostly from low-income families, many of whom
dropped out owing to the crisis.

The coronavirus has had a significant detrimental influence on the economy of the country.
During this Covid-19 pandemic situation suddenly, a large number of people have fallen into
poverty line. Those who were already poor have grown much destitute. There's also the
worry that a huge portion of them will not be able to escape poverty overnight.

8.1 Covid-19 creates graduate unemployment in Bangladesh

The COVID-19 outbreak has put additional strain on the labor market. The epidemic limits
employment possibilities because most businesses have stopped recruiting in order to reduce
operational expenses, which raises the unemployment rate. Bangladesh has a high rate of
graduate unemployment. Bangladesh ranked in 2nd position on graduate unemployment
within the South Asian Nations. The rate of graduate unemployment in Bangladesh is
perplexing, and there are numerous reasons for this, including graduates' lack of cognitive
and soft skills (critical thinking, problem solving, and communication skills), low quality
education systems (outdated curriculum in public universities and low quality in private
universities), no job specialization and lobbying, corruption, and political affiliation.

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 Chapter 9: Solutions to Bangladesh's unemployment crisis

1. Developing self-employment opportunities, particularly in the poultry and livestock

industries.

2. All women should be empowered and have career chances.

3. Create an employment resource center.

4. Workers should be properly trained.

5. Make industrial inputs available.

6. Diversify the capabilities of the employee.

7. On jobless days, the government's social work programs such as kabikha and kabita should
be implemented.

8. The government should accept expansionary fiscal and monetary policies.

9. Provide workers with technical and technological education.

10. In rural locations, establish tiny and cottage industries.

11. To attract foreign direct investment, provide an investment-friendly atmosphere.

Chapter 10: Conclusion

In this paper I already discussed how unemployment creates various types of problems and
devastating consequences for our country. Unemployment is seen as a significant indicator of
the economy's health. In developing countries like Bangladesh, unemployment is a major
concern. The high rate of unemployment indicates that the country is not making efficient use
of its labor resources. Over the last decade, Bangladesh's phenomenal economic growth has
been unable to create a corresponding number of jobs. Currently, more than 65 percent of our
population is of working age, ranging from 15 to 64 years old. When a country has a big
proportion of young people, they are expected to contribute to the economy. But the country

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continues to struggle with a large pool of low-skilled labor. Furthermore, our education
system is not yet pro-poor, and the curriculum does not promote human development or
poverty elimination. We must act to prepare our youth for the world of employment in the
future. Because the majority of new professions developed in the future will be highly skilled,
we need to update our outdated education system to make it more relevant to the changing
times. If we succeed, we will assure our people's prosperity. When Bangladesh will achieve
an optimal level of employment and operate at its full productive potential there will be no
more poor people and will be the top GDP country of the world.

Chapter 11: References

1. The Impact of COVID-19 on Bangladesh’s Economy: A Focus on Graduate

Employability,
Available:
https://www.koreascience.or.kr/article/JAKO202106438543845.pdf
2. COVID-19 Impacts on Employment and Livelihood of Marginal People in
Bangladesh: Lessons Learned and Way Forward,
Available:
https://journals.sagepub.com/doi/full/10.1177/0971523121995072
3. Unemployment problem in Bangladesh and its solution,
Available:
https://oikosmist.com/unemployment-problem-in-bangladesh/
#:~:text=Unemployment%20rate%20in%20Bangladesh&text=Then%20the
%20unemployment%20rate%20is,country%20in%202019%20is
%2069%2C706%2C740.
4. Jobless to be higher this year,
Available:
https://thefinancialexpress.com.bd/national/jobless-to-be-higher-this-year-
1642479982
5. Bangladesh Unemployment Rate 1991-2022,
Available:
https://www.macrotrends.net/countries/BGD/bangladesh/unemployment-rate

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