lOMoARcPSD|11218974

ECO Report 211 - assignment work on employment

Accounting (Universiti Teknologi MARA)

Studocu is not sponsored or endorsed by any college or university

Downloaded by Miss Aqishah (naqishahhassan@gmail.com)
 lOMoARcPSD|11218974

UiTM CAWANGAN PERLIS

ECO 211:

UNEMPLOYMENT IN BANGLADESH

LECTURER : SIR MARWAN HASSIM @ HASHIM

NAME STUDENT ID
1. Nur Suhaila Binti Bokhari 2018270252
2. Nurul Izzah Binti Amuary 2018433478
3. Nur Fazliyana Binti Mohd Razi 2018655734
4. Qisthina Shuhada Binti Zulkefli 2018278756

Downloaded by Miss Aqishah (naqishahhassan@gmail.com)

 lOMoARcPSD|11218974

TABLE OF CONTENT:

CONTENT PAGES

1. Introduction 3

2. Types of Unemployment 4-5

3. Causes of Unemployment 6-7

in Bangladesh

4. Unemployment Rate in 8
Bangladesh

5. Measures to Control 9-10

Unemployment

6. Impact of Unemployment 11

7. Conclusion 12

Introduction

Downloaded by Miss Aqishah (naqishahhassan@gmail.com)

 lOMoARcPSD|11218974

Labour force is defined as people from the total population

above 15 years age, who are not in any institution and are either
employed or unemployed but actively seeking employment.

Unemployment means labour force participants being available

and willing to work, but are unable to find jobs. Therefore, the
unemployment rate is a percentage of the labour force that is
unemployed and is actively seeking employment.

Unemployment issue has become a great concern all over the

world included in Bangladesh. Not only in Bangladesh, thousand of
people in our country are without any job. Unemployment scenario
of the graduate level in Bangladesh has been a serious problem.

TYPES OF UNEMPLOYMENT

Downloaded by Miss Aqishah (naqishahhassan@gmail.com)

 lOMoARcPSD|11218974

1) Frictional Unemployment
- This is temporary unemployment. It occurs when people are
in between jobs, or are entering or reentering the labor
force. Those people whom just graduate and start searching
for jobs and those quit from jobs and looking for new jobs
included in frictional unemployment. They need some time
to search for new jobs that are suitable to their needs and
qualifications. So they are temporarily unemployed in the
limited period of time.

2) Cyclical Unemployment
- This unemployment is caused by a decrease in aggregate
demand due to a change in business cycle. When an
economy is under recession, the demand for products
decrease and therefore the demand for workers are also
decrease. Many people become unemployed because of this
economic condition. Cyclical unemployment is a matter of
serious concern compared to frictional unemployment
because the latter in involuntarily and continues until the
economy comes out of the recession and takes several
years to recover.

3) Structural Unemployment
- This unemployment occurs when there is a change in the
structure of an economy. Therefore the skills of workers are
no longer suitable with the jobs available. It occurs because
the composition of the labor force does not respond quickly
to meet changing demands, technological changes or
competition from imported goods. The workers find that
their skills and talent are obsolete and unwanted due to
changes in technology and consumer demand. For example,
in the agricultural sector, many unskilled and uneducated
workers are laid off because of modern mechanization. A
structural unemployed person faced difficulties in finding
new job without undergoing training or having additional
education.

Downloaded by Miss Aqishah (naqishahhassan@gmail.com)

 lOMoARcPSD|11218974

4) Seasonal Unemployment
- It occurs when certain product cannot be produced during a
certain season. Therefore, many people are temporarily
unemployed during this season. For example, during
monsoon season, fisherman, rubber-tapers and farmers will
be temporarily unemployed. Many people are also employed
at tourist spots during peak periods such as during festive
periods, and are unemployed during off-peak periods.

Downloaded by Miss Aqishah (naqishahhassan@gmail.com)

 lOMoARcPSD|11218974

CAUSES OF UNEMPLOYMENT IN BANGLADESH

1) Rapid Population Growth

It is the leading cause of unemployment in Rural Bangladesh, the

population is increasing rapidly. It hit differently and affected the
unemployment in two ways. In the first place, the growth of
population directly encouraged the unemployment by making
large addition to labour force. It is because the rate of job
expansion could never have been as high as population growth
would have required.

It is true that the increasing labour force requires the creation of

new job opportunities at an increasing rate. But in actual practice
employment expansion has not been sufficient to match the
growth of the labour force.

Besides that, affected the unemployment situation by reducing

the resources of capital formation. Any rise in population will
increasing government expenditure which is maintenance and
education. In addition, more resources get used up in private
consumption such as food, clothing, shelter and some on in
public consumption which is drinking water, electricity, medical
and education facilities. Hence, it will reduced the opportunities
of diverting a large proportion of incomes and saving also
investment. In conclusion. Population growth has created
obstacles in the way of first growth of the economy and reducing
the growth of job opportunities.

2) Limited Land

Land is the gift of nature. It is always constant and cannot

expand like population growth. Since, the population rate in
Bangladesh increasing rapidly, the land is not sufficient for the
growing population. As a result, heavy pressure occurred on the
land. People depend directly on land for their livelihood. Land is
very limited in comparison to population. It create the
unemployment situation for a large number of person who
depend on agriculture.

Downloaded by Miss Aqishah (naqishahhassan@gmail.com)

 lOMoARcPSD|11218974

3) Not Good In Employment Planning

The employment planning of the government is poor as

population growth keep increasing day-by-day. Employment
opportunities did not increase according to rate of population
growth. Therefore, a great difference is visible between the job
opportunity and population growth. On the other hand it is very
tough task on the part of Government to supply job opportunities
to all people.

Downloaded by Miss Aqishah (naqishahhassan@gmail.com)

 lOMoARcPSD|11218974

UNEMPLOYEMENT RATE IN BANGLADESH

According to the graph, Unemployment Rate In Bangladesh decreased to 4.50

percent in 2010 from 5.10 percent in 2009. Unemployment Rate in Bangladesh
is reported by the Bangladesh Bureu of Stastistic. From 2003 until 2010,
Bangladesh Unemployment Rate averaged 4.6 percent reaching an all time high
of 5.1 percent in December of 2009 and a record low of 4.3 percent in December
of 2006.

Downloaded by Miss Aqishah (naqishahhassan@gmail.com)

 lOMoARcPSD|11218974

MEASURES TO CONTROL UNEMPLOYMENT

1) Population control

As rapid population growth is being said as one of the causes of the

unemployment in Bangladesh, people in Bangladesh should be more
aware of this matter and take it into consideration. Family planning is
one of the way to control the growing population. It is should be
recognised and implemented in every family that lives in Bangladesh,
effectively and widely. It is because if the number of population keep
growing, the number of people being unemployment will also increase
in huge amount and it also will affect the economic growth of the
country.
If the population kept growing widely, it might seems it won’t be
effecting the life of people in Bangladesh in ecomic way at first, but as
time passed by it somehow will cause trouble and make their children
suffer and to go to another country to find job as they got unemployed
at their own country.

2) Development of new land

The government should develop more new land in order to create more
jobs opportunities especially to those who lives in countryside. The
government and other big companies that manage jobs in this area
should really be aware of this and keep focusing on developing new
land.

This development can help to reduce the number of people who is

being unemployed. Plus, it is not only helps people who are
unemployed but also helps the country to reach a certain point in
ecomic way that can be equal or more better than other countries as
well.

3) Job creation in various sectors of an economy

Aside from developing new land, the government also need to provide
various jobs opportunity with various department. This way, more

Downloaded by Miss Aqishah (naqishahhassan@gmail.com)

 lOMoARcPSD|11218974

people will get employed by the company based on their skill and
qualification. For example, if the company are working on economy
sectors, there are a lot of jobs to offer on various department such as
transportation, finance, insurance, services, tourism,manufacturing
and many others.

This is very important to help reducing the number of people who are
being unemployed. Jobs on various department are very needed in
every company that exist in the world. It is because it’s not only going
to help to reduce the rate of unemployment but also help the company
to move forward much better and work faster on each project that
they are dealing with.

4) Changes in training and education system

The government should change the education system to be more

better. They likely need to change most part of the education. For
example, they should give a better opportunities to those who have
higher educational background such as signing them to enter
universities or colleges. Plus, those who already finished college or
universities should start to open a small business as a source of
income, instead of staying at home and enjoy being unemployed.

In addition, more training should be provided for individuals who have

difficulties with getting a job especially those who have lower
educational background. It is because it can give them more
opportunities in securing a job in departments that required more
physical strength rather than higher education level.

When individuals have a better skill and knowledge, the opportunities

find a job will be more easy. So, the government really should change
how the training and education system works in their country in order
to reduce the percentage rate of unemployment people in Bangladesh.

Downloaded by Miss Aqishah (naqishahhassan@gmail.com)

 lOMoARcPSD|11218974

IMPACT OF UNEMPLOYMENT

1) Effects on Individuals and Society

- Unemployment is much more than an economic problem, it
is social problem as well.

a) Loss of income and self-respect

A worker who is unemployed for a long time may face
financial problems, and consequently, lose his/her self-
respect and the respect of immediate family and friends.
This leads to frustration, causing him/her to turn to
alchohol or drugs or resort to life a crime.

b) Loss of job skills

Unemployed workers may lose their job skills, due to lack
of application. Retraining and educating them may prove
expensive,

c) Social and political problems

In some extreme cases, unemployed workers may join
radical groups and engage in troublesome social and
political activities. The crime rate would be high, if
unemployment is high.

2) Effects on the economy

- High unemployement rates will affect the economy. The
cost of unemployed is measured as the goods and services
which society could have produced, but did not. The GNP
gap is one of the ways to measure the cost of
unemployment.
Unemployment incurs the loss of government revenue
obtained through personal taxes. Certain countries provide
unemployment benefits, which from part of government

Downloaded by Miss Aqishah (naqishahhassan@gmail.com)

 lOMoARcPSD|11218974

expenditure. This could reduce development activities of the

economy. Slow economic growth and low output might lead
to a depression.

CONCLUSION

Unemployment is a serious social and economic issue that

results in a tremendous impact on everything but is
often overlooked. A stronger system of assessing unemployment
should be put in place in order to determine its causes and how to
address it better. It is a great curse to nation and can reduce
development activities of the economy. We should make all out
efforts to get rid of this curse.

Downloaded by Miss Aqishah (naqishahhassan@gmail.com)