Future of jobs and what it means for Bangladesh

The economic growth of Bangladesh happened because of the contributions from the RMG (ready-made garment) sector and an ever-expanding middle class which presents both challenges and possibilities for creating jobs. Information technology, renewable energy, healthcare, and digital services are all growing industries that could absorb a large share of the unemployed youth workforce. But an overhyped trend for certain jobs with limited positions, skill mismatch between fresh graduates and employers, offering subpar salary to employees and a lack of interest among employers in hiring local graduates make the employment situation in Bangladesh complex and the country might face irreversible problems in the future if this situation isn't addressed.

As of 2023, Bangladesh's youth unemployment rate stood at 15.74 per cent, marking a slight decline from the previous year's 15.94per cent. This figure remains alarmingly high, especially when compared to the overall unemployment rate of 5.06per cent. The disproportionate unemployment among the youth signals systemic issues within the education system and labour market. Many young individuals, particularly those with tertiary education, find themselves without suitable employment opportunities, leading to frustration and economic stagnation.

The distribution of employment across various sectors in Bangladesh reveals significant imbalances. In 2022, the service sector employed 41.26per cent of the workforce, the agricultural sector accounted for 36.86per cent, and the industrial sector comprised 21.88per cent. While the dominance of the service sector is evident, a major portion of employment remains in agriculture which is low in productivity and its arrangements are informal in nature. The industrial sector, which has the potential to offer higher-value jobs, employs a relatively smaller share of the workforce.

A significant number of fresh graduates in Bangladesh tend towards banking and government positions, particularly the Bangladesh Civil Service (BCS). This happens for a variety of reasons, including job security and prestige, as government jobs are perceived as stable and provide benefits such as pensions and guaranteed employment.

On the other hand, bank jobs have been traditionally considered lucrative because of competitive salaries, job stability, and opportunities for career growth through structured hierarchies. However, with the advent of AI and blockchain technologies, the banking industry is set to undergo significant transformation, shifting away from traditional models and automating many functions. This is actually a risk for roles that are not future-ready, especially in relationship management and routine tasks which may become obsolete or require re-skilling.

Furthermore, the country has a risk averse culture and many graduates are unaware of opportunities in new areas, leading them to choose more traditional career choices. Societal expectations also play a role, with cultural norms often prioritising specific occupations. This concentration in a few sectors results in an oversupply of applicants, increasing competition and leaving other job sectors with a shortage of skilled individuals.

Several sectors in Bangladesh remain underexplored by job seekers but hold significant potential for growth and employment. The information technology (IT) sector offers vast opportunities in software development, cybersecurity, and data analytics, driven by the global digital transformation. Renewable energy is another promising field, with expansion prospects in solar and wind as the world moves towards more sustainable energy sources.

Tourism and hospitality present opportunities by leveraging the rich cultural heritage and natural beauty of Bangladesh, as well as creating careers in tourism management, hospitality services, and eco-tourism. Encouraging graduates to explore these fields could help fight unemployment problems while promoting economic diversification and growth.

A critical issue contributing to youth unemployment in Bangladesh is the mismatch between the skills possessed by graduates and those demanded by employers. Many educational institutions prioritise theoretical knowledge over practical skills, which leaves graduates ill-prepared for the workforce. This gap becomes evident when considering the lack of technical proficiency among many graduates, who often have limited hands-on experience with industry-standard tools and technologies.

In addition to technical deficiencies, there are gaps in soft skills such as communication, teamwork, and problem-solving, further complicating their transition into professional roles. Graduates also struggle to adapt to dynamic work environments and evolving industry requirements. Addressing these shortcomings through curriculum reforms and expanded vocational training is important for improving their employability and ensuring alignment with job market needs.

There is a common trend in Bangladesh among employers to hire skilled professionals from foreign countries such as India, Sri Lanka, and China. Several factors are behind this activity, including a skill deficiency among local graduates, who often lack the specialised skills and experience required for specific roles. Foreign professionals are also perceived to demonstrate higher levels of professionalism and a stronger work ethic. Additionally, employers seek individuals who can contribute immediately without the need for extensive training. This practice shows the need to improve the quality of local education and training programmes to better align with industry standards.

Furthermore, if Bangladesh wants to attract more foreign direct investments (FDIs), it must have a strong technical talent pool capable of fulfilling global needs while also encouraging industry innovation. An expanding base of technically skilled individuals not only boosts the country's competitiveness, but also promotes long-term economic growth and makes it a more desirable location for global investors.

To address the challenges in the job market of Bangladesh, a multi-pronged approach is necessary. Educational reforms should align the curriculum with industry needs, placing greater emphasis on practical skills, critical thinking, and adaptability. Expanding vocational and technical education programmes is crucial for equipping the youth with market-relevant skills that employers seek. Additionally, career counselling services must be implemented to inform students about diverse career paths and emerging sectors, broadening their understanding of available opportunities.

Public-private partnerships also hold good potential by developing collaborations between educational institutions and industries, facilitating internships, apprenticeships, and job placements. The wage standard in Bangladesh should also be improved to tackle inflation and encourage skilled graduates to fill up jobs that need their skill sets and contribute to the economic growth.

Bangladesh faces youth unemployment, skill mismatches, and sectoral imbalances. Addressing these requires collective efforts from all stakeholders. By embracing educational reforms, promoting diverse career opportunities, and aligning workforce skills with industry demands, Bangladesh can transform job market challenges into sustainable growth opportunities.

Of equal importance is encouraging young professionals and students to prioritise continuous education, utilisation of new technology, and a strong work ethic. Moving away from the attractiveness of professions like the BCS, which typically offer comfort and, in some cases, underhand pay, requires changing attitudes toward career achievement and meritocracy. Encouraging a culture of creativity, adaptability, and ethical standards will help Bangladeshi youths compete in a fast changing global job market.

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