Bangladesh, other South Asian countries recorded lowest youth unemployment rates in 15 years: Report

Bangladesh and other countries in South Asia recorded the lowest youth unemployment rates in 15 years in 2023, but the unemployment rate of 15.1% is historically the region's highest, according to a new International Labour Organisation (ILO) report.

This is characterised by high rates of youth not in employment, education, and training (NEET), due to a lack of equal opportunities or access to training and jobs and because of the exclusion of young women from schooling and employment opportunities.

The NEET rate among young women in the subregion was nearly four times greater than the rate of young men, at 42.4% and 11.5%, respectively, in 2023. At 31 percentage points, this marks the largest gender gap in youth NEET rates across the world.

This global report, titled Global Employment Trends for Youth 2024 (GET for Youth), comes at a critical time when Bangladesh is undergoing a major political transition.

"Bangladesh is a nation defined by its youth," said Tuomo Poutiainen, ILO Country Director for Bangladesh. "We believe the report's findings and recommendations will be helpful in shaping an environment for a better future for youths in Bangladesh, aligning with the 'Zero Unemployment ' priority of the interim government," he said.

With approximately two million young people entering the labour force annually and more than a quarter of the population (25.81%) within the 15-29 age group, Bangladesh holds immense potential to harness the benefits of a demographic dividend.

Notably, 36.7% of the total labour force falls within this age bracket, underscoring the country's capacity for future growth.

"The ILO stands ready to provide technical support to Bangladesh in pursuing practical actions to make inclusive, full, and productive employment a reality," Poutiainen added.

The global labour market outlook for young people has improved in the last four years, and the upward trend is expected to continue for two more, according to the report.

However, the GET for Youth report cautions that the number of 15- to 24-year-olds who are NEET is concerning, and that the post-Covid 19 pandemic employment recovery has not been universal.

Young people in certain regions and many young women are not seeing the benefits of the economic recovery.

The 2023 youth unemployment rate globally, at 13%, equivalent to 64.9 million people, represents a 15-year low and a fall from the pre-pandemic rate of 13.8% in 2019.

It is expected to fall further to 12.8% this year and next. The picture, however, is not the same across regions. In the Arab States, East Asia and South-East Asia and the Pacific, youth unemployment rates were higher in 2023 than in 2019.