Youth unemployment in Bangladesh: A growing concern

Illustration: TBS

Youth unemployment has emerged as one of the most significant socio-economic challenges in Bangladesh. A large number of young people enter the labour force each year without finding decent employment. According to Statista, Bangladesh's youth unemployment rate has fluctuated between 10% and 12% in recent years.

Moreover, higher education has expanded considerably over the past decade, leading to a substantial increase in the number of university graduates each year. However, a concerning contradiction overshadows this achievement. According to data reported by the Bangladesh Bureau of Statistics in 2025, graduate unemployment in Bangladesh remained high, reaching 13.5%. This reflects a persistent problem in the country's labour market and has contributed to a severe educated youth unemployment crisis.

Over the past two decades, Bangladesh's education sector has grown significantly. Tertiary enrolment reached 24.32% in 2025, ranking the country 109th globally and representing a 2.5% increase from 2024. Both the public and private sectors have driven this expansion, resulting in a more diverse educational landscape with a wide range of specialisations. Private universities now account for approximately 60% of all higher education institutions, creating new opportunities for young people.

However, youth unemployment remains alarmingly high despite this expansion. The youth unemployment rate in Bangladesh stood at 9.39% in 2025. Several factors contribute to this issue. One of the primary causes is the mismatch between the skills young people acquire through education and those required by employers. While employers struggle to find job-ready graduates, formal education often lacks practical and market-oriented training. The traditional education system tends to place greater emphasis on theoretical knowledge than on practical skills. As a result, many young people are inadequately prepared for the workplace upon graduation.

Another contributing factor is the rapid growth of the labour force. Each year, approximately one to two million young people enter the workforce, while the economy must generate sufficient high-quality jobs in industry and services to absorb them. This oversupply has created a highly competitive environment in which even top-performing graduates find it difficult to secure well-paid employment. Consequently, many young people pursue alternative career paths.

Furthermore, gender and social constraints continue to exacerbate youth unemployment. Female labour force participation and youth employment rates remain significantly lower than those of their male counterparts. Social norms, household responsibilities, and concerns related to safety and transportation often limit women's access to the labour market and contribute to higher rates of young women who are not in employment, education, or training (NEET).

These factors have collectively contributed to the high level of youth unemployment in Bangladesh.

Addressing this challenge requires a combination of educational reform, economic expansion, and inclusive social policies. First, the education system must be aligned more closely with labour market demands by strengthening Technical and Vocational Education and Training (TVET) programmes, thereby reducing the skills gap among graduates. Encouraging entrepreneurship through improved access to finance and business training could also help young people become job creators rather than job seekers. In addition, promoting gender equality by ensuring safe transportation and equal employment opportunities is essential for reducing social barriers to work. Such measures would contribute to both employment generation and national economic growth.

In conclusion, youth unemployment remains a persistent challenge driven by skills mismatches, rapid labour force growth, and social constraints, among other factors. Addressing this issue is crucial for promoting inclusive economic development and improving employment outcomes for young people. In 2026, youth unemployment is expected to remain a major economic concern unless effective policies are implemented and employment opportunities are expanded. Bangladesh's youth remain one of the country's greatest assets, provided they are given the opportunity to thrive.

Mahek Amin Nouf is a student of the Department of Economics at Southeast University

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard.