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Unemployment Problem in Bangladesh

Bangladesh is a small country with a large number of populations. The people
of our country often suffer from many problems. Unemployment can be
defined as a major problem in Bangladesh. It is the situation in which one
does not have any opportunity to work and earn. An unemployed person
cannot earn his living. He has to depend on others. He is thought as a burden
to the family or the society. So, it is regarded as a great problem. We can tell it
mother of many social problems. For only unemployment problem, economic
growth of our country is hampered much. Many social problems as like as
poverty, dowry system, urban overpopulation, social crime, GDP rate
decrease, lower standard of living, burden to the nation etc. Unemployment
problem has become a great concern all over the world. But nowhere in the
world is this problem as acute as in Bangladesh. Unemployment is a great
concern in Bangladesh. Every year hundreds of thousands student are coming
out from college and university. Though it is one of the major responsibilities
of the Government to provide job to those young generation but the
Government is failed to meet the job demand among the large population.
Only a tiny fraction of total jobless is managed by different government offices
and private organization but a majority remain unemployed.



Cause of Unemployment in our country: Bangladesh, suffers from large-
scale underemployment; especially in agriculture, a large part of the
population could be removed without reducing agricultural output. Beyond
agriculture, disguised unemployment also exists in industries, offices
and organizations, particularly in the public sector. Unemployment among the
educated youths is rather high in Bangladesh. The unemployment rate for the
population having secondary education and above is significantly higher than
those with a lower level of education. The unemployment rate for educated
women is higher compared to the male population. In Bangladesh salaried
employment in the formal sectors is not big enough to take care of the huge
number of unemployed. Employment promotion, especially, creation of self-
employment opportunities, continues to be the most important function of the
Unemployment Problem in Bangladesh
Bureau of Manpower Employment and Training. The Fifth Five-Year Plan
(1997-2002) had set a target of creating additional employment of 6.35
million persons. Of this, 1,60,000 persons are expected to be engaged in self-
employment. Emphasis had been given on training and credit support to
women entrepreneurs in micro cottage industries and other traditional and
non-traditional sectors including skill development for service industries and
other non-farm activities. Bangladesh has a rather high rate of Inflation rate
10.2% (Mayof 2011) also provides a vital role in Unemployment. Minimum
wage law & Labor unions working for efficiency wages also a reason for
unemployment as well-paid employees rarely leaves their job to create chance
for the new workers. According to a study of the International Labor
Organization (ILO),The rate of growth of unemployment in Bangladesh was
1.9 per cent in the nineties. But the growth in unemployment currently is 3.7
per cent. The ILO figures also show Bangladesh in the twelfth position among
the top twenty countries in the world where unemployment is rising. The
number of the unemployed in Bangladesh now is estimated at 30 million.




The way the rate of unemployment is increasing, it is it is feared that at
this rate unemployment would soar to some 60 million by 2015. According to
Unemployment Problem in Bangladesh
another estimate, every year some 2.7 million young persons are becoming
eligible for jobs where as only about 0.7 million of them are getting
employment. The number of the 'disguised unemployed' an economic farm
meaning underemployed people or employed to a degree less than their
potential, issome 32 per cent. The total civilian labor force of the country in
1996-97 was estimated at 42.97million, of which 34.7 million were male and
8.27 million were female. These figures, however excluded the female labor
force engaged in activities like poultry, livestock, paddy husking, preservation
of food etc. conducted in rural households and considered as domestic work
rather than economic.



Area wise Cause: There are several area wise unemployment tendencies in
Bangladesh. Northern districts of Rajshahi & Rangpur divisions face massive
drought due to the rivers drying up, many of the farmers & agricultural
workers have faced unemployment & eventually had to move to other
professions. During the 70s, the Sylhet districts had major employment
problem which lead many of them to immigrate to UK & other countries. In
the hilly districts of the Chittagong when the “Joom” harvesting was outlawed,
many of the traditional aboriginal farmers had to face temporary
unemployment. After non-CNG vehicles were removed from Dhaka, many
drivers moved to other districts to avoid unemployment.



Sector wise unemployment:

Agriculture 45%

Industry 30%

Services 25%
Unemployment Problem in Bangladesh
Agriculture: Most Bangladeshis earn their living from agriculture. Rice, jute,
maize and vegetables are the primary crops assuming greater importance
along with wheat, sugarcane, potatoes, tobacco, pulses, oilseeds, spices, fruit,
beef, milk, and poultry. Due to the expansion of irrigation networks, some
wheat producers have switched to cultivation of maize which is used mostly
as poultry feed. Tea is grown in the northeast. Because of Bangladesh's fertile
soil and normally ample water supply, rice can be grown and harvested three
times a year in many areas. Due to a number of factors, Bangladesh's labor-
intensive agriculture has achieved steady increases in food grain production
despite often unfavorable weather conditions. Better flood control
and irrigation, more efficient use of fertilizers, and establishment of better
distribution and rural credit networks. Population pressure continues to place
a severe burden on productive capacity, creating a food deficit along with high
rate of unemployment. Foreign assistance and commercial imports fill the gap,
but seasonal hunger("Monga") remains a constant problem.
Underemployment remains a serious problem, and a growing concern for
Bangladesh's agricultural sector will be decided by its ability to absorb
additional manpower. Too much manpower is underused by disguised
unemployment, particularly with the increasing numbers of landless peasants
who are about half the labor force. As the labour needed only seasonally,
about 40% of the agricultural population is underemployed; many
participants in the labor force work only a few hours a week, at low wages.
Due to farmer’s vulnerability to risks, they face numerous potential
limitations to enhance agriculture production and their livelihoods.
Uneducated farmers avoid investing in new agricultural technologies and
activities despite their potential to increase income. On the other
hand technological advancement reduces manpower, causing
more unemployment.



Manufacturing: Many new jobs have been created by private ready-made
garment industry, which grew at double-digit rates through most of
the 1990s. By the late 90s, about 1.5 million people, mostly women, were
Unemployment Problem in Bangladesh
employed in the garments sector as well as Leather products specially
Footwear (Shoe manufacturing). During 2001-2002, export earnings from
ready-made garments reached $3,125million, representing 52% of
Bangladesh's total exports. Bangladesh overtook India in apparel exports in
2009, at 2.66 billion US dollar, ahead of India's 2.27 billion US dollar. Bengal
was known for its fine Maslin and silk fabric, still produces Jamdani &
Benarasi which is a large industry. Other industries which have shown
very strong growth include the chemical industry, steel industry, mining
industry and the paper and pulp industry. Sugar, cotton textiles, jute made
products, Shrimp& frozen fish, seafood, garments, tea processing,
newsprint paper, cement, chemical fertilizer, light engineering, etc. provides
job to many. The shutting down of Adamjee Jute Mills in 2002 made25000
workers lose their job. As the growth of industry is not significantly high in
the country [6.4%(2009 est.)], the country suffers severely of unemployment.
Wages in Bangladesh's textile industry were the lowest in the world as of
2010. The country was considered the most formidable rival to China where
wages were rapidly rising and currency was appreciating. Corruption, poor
infra structure, insufficient power supplies, and slow implementation of
economic reforms rarely encourage foreign investors, which
eventually minimizes more job opportunities & promotes unemployment.



Service : In the Service sector is seriously slow to meet the rising numbers of
new work force that enters the job market each year. For a massive 73.87
million labor force new job opportunities opening is too low. Bangladesh
extensively exports of labours to Saudi Arabia, Kuwait, Libya, UAE,
Oman,Qatar, and Malaysia; workers' remittances estimated at $10.9 billion in
2009-10 provide a strong helping hand to the economy of the country. In
recent years as the rate of literacy has increased, there is a rise in the number
of educated work force available. Due to the lower number of available jobs
they are not fully used. Many of these doctors, engineers, etc. are immigrating
to countries with better career opportunity. These educated assets
are underused either by inappropriate job or being jobless.
Unemployment Problem in Bangladesh




According to United Nations Data, If we analysis unemployment problem
yearly, we will see that it is increasing day by day. In 1996 unemployment rate
was 35.20%, then in 2001 it was 35%, in 2002 it came into 40% and in 2004 it
was same.




Problems Created by Unemployment:
    Poverty: High number of unemployed members of the country is one
     of the prime reasons of poverty. These workers are either jobless or
     underpaid. Population below poverty line 36.3%(2008 est.) is a
     massive number to cope with a nation with a population of 142.3
     million (census15/03/2011 result). As poverty on the rise, the
Unemployment Problem in Bangladesh
    government under debt there is rarely any opportunities of new jobs. So
    this process gets bad to worse by time.

  Law & Order: Unemployed members of the society are often drawn
   to crimes to earn living. When a man finds no means to feed himself,
   in desperation they move to illegal way to earn.70% crime rate can be
   reduced by only giving them legal way to earn their living. Increase in
   crime rate is proportional to unemployment rate.

  Urban Overpopulation: Lower development & work activities effects
   in rural-urban migration in Bangladesh, influences moving to a large
   city is found to be determined by the urban bias in planning both by
   national and international authorities, and by the public amenities and
   resources available in the urban areas. An analysis of the levels and
   trends in urbanization reveals the notable role of rural-urban migration
   in the rapid growth of the urban population. Most migrants are young,
   unmarried males of working age. A case study of migrants in Dhaka City
   illustrates the reasons for and consequences of migration. It is
   concluded that rural-urban migration is mainly a survival strategy of
   the rural unemployment.



  Gross Domestic Product (GDP) Rate decrease: GDP - real growth rate
   Bangladesh is 5.8% (2010est.) Bangladesh, considered as a developing
   economy with GDP such low compared to other developing nations.
   Economic progress has all along been unsatisfactory and a high
   unemployment rate does not help to change the GDP progress more.



  Lower Standard of Living: Poverty along with unemployment holds
   back the nation’s economy and does not allow improving life standards.
   The unemployed population can hardly manage a full meal a day, let
   alone other facilities.
Unemployment Problem in Bangladesh

   Burden to the Nation: The unemployed population is a burden itself to
    the nation and its government. They can neither improve their own life
    nor can they help the nation to progress. The nation has to suffer for this
    huge inactive population & they hold back the economic progress.




Our Government’s Policy: The government has several projects to increase
employment among the mass. The main objective of the government policy
is to create self-employment by training & encouraging small business among
the mass. Government has undertaken a high budget Youth Training Program
to create trained workforce in the country. Government’s road & highway
development projects provide jobs to many. Women development ministry
has training centers for women to create self employment. Bangladesh Bureau
of Manpower, Employment and Training (BMET) also work to provide
workers who want to work abroad. Ministry of Labour and Employments
vision is to reduce unemployment & poverty through productive employment
& human resource development by maintaining good industrial relation &
relation development between workers & employers. Their plan is to create
employment opportunities, create semi-skilled & skilled manpower, Enhance
productivity of Factories by creating Friendly working environment between
workers & Employers, Ensure welfare of workers in different industrial area &
implement Labour-Laws to fix up minimum wages of labour & in severe cases
ensure justice through Labour Court. After massive labor unrest in2006 the
government formed a Minimum Wage Board including business and worker
representatives which in 2006 set a minimum wage equivalent to 1,662.50
taka, $24 a month, up from Tk950. In 2010, following widespread labor
protests involving 100,000 workers in June, 2010, a controversial proposal
was being considered by the Board which would raise the monthly minimum
to the equivalent of $50 a month, still far below worker demands of 5,000
taka, $72, for entry level wages, but unacceptably high according to textile
Unemployment Problem in Bangladesh
manufacturers who are asking for a wage below$30. On July 28, 2010 it was
announced that the minimum entry level wage would be increased to3,000
taka, about $43.The government also believes some change is necessary. On
September 21,2006, government ordered textile firms to ensure the safety of
workers complying with international labor law.




Activities of some NGO and Organizations: Activities of Some Several
private organizations such as The Grameen Bank, Proshika, Save the Children,
Brac, ASA, WBTF, etc. are working in the country to increase employment rate.
Grameen Bank founder, Dr. Younus & his microcredit scheme has earned its
reputation worldwide. Grameen Bank allows loan to the poor &helpless
people, especially women of villages. They encourage them to invest this
money for productive purposes. Their target is to self-employ the
unemployed. They give loan for small business, buying lands, making firms,
etc. Microcredit policy gives loans without through trust. This helps those
people who have nothing to bail & enables them make enough capital to start
business. The NGOs gives training to men-women & promote cottage
industries. This allows them to be self-dependent & creates more jobs. There
are several privately run employment agencies & job sites that provide job,
mostly for the educated & students.



However, we have a dream to make our country free from unemployment
problem. If we can protect this problem, we will find our dreamful country.

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Unemployment problem

  • 1. Unemployment Problem in Bangladesh Bangladesh is a small country with a large number of populations. The people of our country often suffer from many problems. Unemployment can be defined as a major problem in Bangladesh. It is the situation in which one does not have any opportunity to work and earn. An unemployed person cannot earn his living. He has to depend on others. He is thought as a burden to the family or the society. So, it is regarded as a great problem. We can tell it mother of many social problems. For only unemployment problem, economic growth of our country is hampered much. Many social problems as like as poverty, dowry system, urban overpopulation, social crime, GDP rate decrease, lower standard of living, burden to the nation etc. Unemployment problem has become a great concern all over the world. But nowhere in the world is this problem as acute as in Bangladesh. Unemployment is a great concern in Bangladesh. Every year hundreds of thousands student are coming out from college and university. Though it is one of the major responsibilities of the Government to provide job to those young generation but the Government is failed to meet the job demand among the large population. Only a tiny fraction of total jobless is managed by different government offices and private organization but a majority remain unemployed. Cause of Unemployment in our country: Bangladesh, suffers from large- scale underemployment; especially in agriculture, a large part of the population could be removed without reducing agricultural output. Beyond agriculture, disguised unemployment also exists in industries, offices and organizations, particularly in the public sector. Unemployment among the educated youths is rather high in Bangladesh. The unemployment rate for the population having secondary education and above is significantly higher than those with a lower level of education. The unemployment rate for educated women is higher compared to the male population. In Bangladesh salaried employment in the formal sectors is not big enough to take care of the huge number of unemployed. Employment promotion, especially, creation of self- employment opportunities, continues to be the most important function of the
  • 2. Unemployment Problem in Bangladesh Bureau of Manpower Employment and Training. The Fifth Five-Year Plan (1997-2002) had set a target of creating additional employment of 6.35 million persons. Of this, 1,60,000 persons are expected to be engaged in self- employment. Emphasis had been given on training and credit support to women entrepreneurs in micro cottage industries and other traditional and non-traditional sectors including skill development for service industries and other non-farm activities. Bangladesh has a rather high rate of Inflation rate 10.2% (Mayof 2011) also provides a vital role in Unemployment. Minimum wage law & Labor unions working for efficiency wages also a reason for unemployment as well-paid employees rarely leaves their job to create chance for the new workers. According to a study of the International Labor Organization (ILO),The rate of growth of unemployment in Bangladesh was 1.9 per cent in the nineties. But the growth in unemployment currently is 3.7 per cent. The ILO figures also show Bangladesh in the twelfth position among the top twenty countries in the world where unemployment is rising. The number of the unemployed in Bangladesh now is estimated at 30 million. The way the rate of unemployment is increasing, it is it is feared that at this rate unemployment would soar to some 60 million by 2015. According to
  • 3. Unemployment Problem in Bangladesh another estimate, every year some 2.7 million young persons are becoming eligible for jobs where as only about 0.7 million of them are getting employment. The number of the 'disguised unemployed' an economic farm meaning underemployed people or employed to a degree less than their potential, issome 32 per cent. The total civilian labor force of the country in 1996-97 was estimated at 42.97million, of which 34.7 million were male and 8.27 million were female. These figures, however excluded the female labor force engaged in activities like poultry, livestock, paddy husking, preservation of food etc. conducted in rural households and considered as domestic work rather than economic. Area wise Cause: There are several area wise unemployment tendencies in Bangladesh. Northern districts of Rajshahi & Rangpur divisions face massive drought due to the rivers drying up, many of the farmers & agricultural workers have faced unemployment & eventually had to move to other professions. During the 70s, the Sylhet districts had major employment problem which lead many of them to immigrate to UK & other countries. In the hilly districts of the Chittagong when the “Joom” harvesting was outlawed, many of the traditional aboriginal farmers had to face temporary unemployment. After non-CNG vehicles were removed from Dhaka, many drivers moved to other districts to avoid unemployment. Sector wise unemployment: Agriculture 45% Industry 30% Services 25%
  • 4. Unemployment Problem in Bangladesh Agriculture: Most Bangladeshis earn their living from agriculture. Rice, jute, maize and vegetables are the primary crops assuming greater importance along with wheat, sugarcane, potatoes, tobacco, pulses, oilseeds, spices, fruit, beef, milk, and poultry. Due to the expansion of irrigation networks, some wheat producers have switched to cultivation of maize which is used mostly as poultry feed. Tea is grown in the northeast. Because of Bangladesh's fertile soil and normally ample water supply, rice can be grown and harvested three times a year in many areas. Due to a number of factors, Bangladesh's labor- intensive agriculture has achieved steady increases in food grain production despite often unfavorable weather conditions. Better flood control and irrigation, more efficient use of fertilizers, and establishment of better distribution and rural credit networks. Population pressure continues to place a severe burden on productive capacity, creating a food deficit along with high rate of unemployment. Foreign assistance and commercial imports fill the gap, but seasonal hunger("Monga") remains a constant problem. Underemployment remains a serious problem, and a growing concern for Bangladesh's agricultural sector will be decided by its ability to absorb additional manpower. Too much manpower is underused by disguised unemployment, particularly with the increasing numbers of landless peasants who are about half the labor force. As the labour needed only seasonally, about 40% of the agricultural population is underemployed; many participants in the labor force work only a few hours a week, at low wages. Due to farmer’s vulnerability to risks, they face numerous potential limitations to enhance agriculture production and their livelihoods. Uneducated farmers avoid investing in new agricultural technologies and activities despite their potential to increase income. On the other hand technological advancement reduces manpower, causing more unemployment. Manufacturing: Many new jobs have been created by private ready-made garment industry, which grew at double-digit rates through most of the 1990s. By the late 90s, about 1.5 million people, mostly women, were
  • 5. Unemployment Problem in Bangladesh employed in the garments sector as well as Leather products specially Footwear (Shoe manufacturing). During 2001-2002, export earnings from ready-made garments reached $3,125million, representing 52% of Bangladesh's total exports. Bangladesh overtook India in apparel exports in 2009, at 2.66 billion US dollar, ahead of India's 2.27 billion US dollar. Bengal was known for its fine Maslin and silk fabric, still produces Jamdani & Benarasi which is a large industry. Other industries which have shown very strong growth include the chemical industry, steel industry, mining industry and the paper and pulp industry. Sugar, cotton textiles, jute made products, Shrimp& frozen fish, seafood, garments, tea processing, newsprint paper, cement, chemical fertilizer, light engineering, etc. provides job to many. The shutting down of Adamjee Jute Mills in 2002 made25000 workers lose their job. As the growth of industry is not significantly high in the country [6.4%(2009 est.)], the country suffers severely of unemployment. Wages in Bangladesh's textile industry were the lowest in the world as of 2010. The country was considered the most formidable rival to China where wages were rapidly rising and currency was appreciating. Corruption, poor infra structure, insufficient power supplies, and slow implementation of economic reforms rarely encourage foreign investors, which eventually minimizes more job opportunities & promotes unemployment. Service : In the Service sector is seriously slow to meet the rising numbers of new work force that enters the job market each year. For a massive 73.87 million labor force new job opportunities opening is too low. Bangladesh extensively exports of labours to Saudi Arabia, Kuwait, Libya, UAE, Oman,Qatar, and Malaysia; workers' remittances estimated at $10.9 billion in 2009-10 provide a strong helping hand to the economy of the country. In recent years as the rate of literacy has increased, there is a rise in the number of educated work force available. Due to the lower number of available jobs they are not fully used. Many of these doctors, engineers, etc. are immigrating to countries with better career opportunity. These educated assets are underused either by inappropriate job or being jobless.
  • 6. Unemployment Problem in Bangladesh According to United Nations Data, If we analysis unemployment problem yearly, we will see that it is increasing day by day. In 1996 unemployment rate was 35.20%, then in 2001 it was 35%, in 2002 it came into 40% and in 2004 it was same. Problems Created by Unemployment:  Poverty: High number of unemployed members of the country is one of the prime reasons of poverty. These workers are either jobless or underpaid. Population below poverty line 36.3%(2008 est.) is a massive number to cope with a nation with a population of 142.3 million (census15/03/2011 result). As poverty on the rise, the
  • 7. Unemployment Problem in Bangladesh government under debt there is rarely any opportunities of new jobs. So this process gets bad to worse by time.  Law & Order: Unemployed members of the society are often drawn to crimes to earn living. When a man finds no means to feed himself, in desperation they move to illegal way to earn.70% crime rate can be reduced by only giving them legal way to earn their living. Increase in crime rate is proportional to unemployment rate.  Urban Overpopulation: Lower development & work activities effects in rural-urban migration in Bangladesh, influences moving to a large city is found to be determined by the urban bias in planning both by national and international authorities, and by the public amenities and resources available in the urban areas. An analysis of the levels and trends in urbanization reveals the notable role of rural-urban migration in the rapid growth of the urban population. Most migrants are young, unmarried males of working age. A case study of migrants in Dhaka City illustrates the reasons for and consequences of migration. It is concluded that rural-urban migration is mainly a survival strategy of the rural unemployment.  Gross Domestic Product (GDP) Rate decrease: GDP - real growth rate Bangladesh is 5.8% (2010est.) Bangladesh, considered as a developing economy with GDP such low compared to other developing nations. Economic progress has all along been unsatisfactory and a high unemployment rate does not help to change the GDP progress more.  Lower Standard of Living: Poverty along with unemployment holds back the nation’s economy and does not allow improving life standards. The unemployed population can hardly manage a full meal a day, let alone other facilities.
  • 8. Unemployment Problem in Bangladesh  Burden to the Nation: The unemployed population is a burden itself to the nation and its government. They can neither improve their own life nor can they help the nation to progress. The nation has to suffer for this huge inactive population & they hold back the economic progress. Our Government’s Policy: The government has several projects to increase employment among the mass. The main objective of the government policy is to create self-employment by training & encouraging small business among the mass. Government has undertaken a high budget Youth Training Program to create trained workforce in the country. Government’s road & highway development projects provide jobs to many. Women development ministry has training centers for women to create self employment. Bangladesh Bureau of Manpower, Employment and Training (BMET) also work to provide workers who want to work abroad. Ministry of Labour and Employments vision is to reduce unemployment & poverty through productive employment & human resource development by maintaining good industrial relation & relation development between workers & employers. Their plan is to create employment opportunities, create semi-skilled & skilled manpower, Enhance productivity of Factories by creating Friendly working environment between workers & Employers, Ensure welfare of workers in different industrial area & implement Labour-Laws to fix up minimum wages of labour & in severe cases ensure justice through Labour Court. After massive labor unrest in2006 the government formed a Minimum Wage Board including business and worker representatives which in 2006 set a minimum wage equivalent to 1,662.50 taka, $24 a month, up from Tk950. In 2010, following widespread labor protests involving 100,000 workers in June, 2010, a controversial proposal was being considered by the Board which would raise the monthly minimum to the equivalent of $50 a month, still far below worker demands of 5,000 taka, $72, for entry level wages, but unacceptably high according to textile
  • 9. Unemployment Problem in Bangladesh manufacturers who are asking for a wage below$30. On July 28, 2010 it was announced that the minimum entry level wage would be increased to3,000 taka, about $43.The government also believes some change is necessary. On September 21,2006, government ordered textile firms to ensure the safety of workers complying with international labor law. Activities of some NGO and Organizations: Activities of Some Several private organizations such as The Grameen Bank, Proshika, Save the Children, Brac, ASA, WBTF, etc. are working in the country to increase employment rate. Grameen Bank founder, Dr. Younus & his microcredit scheme has earned its reputation worldwide. Grameen Bank allows loan to the poor &helpless people, especially women of villages. They encourage them to invest this money for productive purposes. Their target is to self-employ the unemployed. They give loan for small business, buying lands, making firms, etc. Microcredit policy gives loans without through trust. This helps those people who have nothing to bail & enables them make enough capital to start business. The NGOs gives training to men-women & promote cottage industries. This allows them to be self-dependent & creates more jobs. There are several privately run employment agencies & job sites that provide job, mostly for the educated & students. However, we have a dream to make our country free from unemployment problem. If we can protect this problem, we will find our dreamful country.