Are Bangladeshi graduates unemployable?
Bangladesh has a surplus of highly educated university graduates with bachelor's degrees. However, millions remain either unemployed or underemployed, stuck in low-end jobs that don't utilise their knowledge and skills
A few days ago, I was talking to the owner of a transport company. He asked me, "Why do you always write about young people not getting jobs? Recently, I advertised for an associate in my marketing team and received nearly fifty applications. Not one of them could write a proper cover letter. Now, you tell me, why should I hire any of them?"
He is not alone. A lawyer recently expressed his frustrations on Facebook, saying he doesn't want fresh graduates in his firm, because they lack the necessary skills.
This is a common employer complaint: a lack of fresh graduates with the required skill sets for vacant positions. On the other hand, graduates complain about low salaries and jobs that don't utilise their merit.
Rafin Rahman, a recent graduate from a reputed public university, has been seeking employment for five months. He says he's been offered Tk12,000—15,000 for full-time jobs.
"It's a joke," he said. "It won't even cover my snack bill. After studying for four or five years, I'm not offered a sufficient salary. Why would I work?"
He says he's preparing for government jobs, which he sees as the only secure option. And Rafin isn't alone. Many young people share this sentiment.
Bangladesh has a surplus of highly educated university graduates with bachelor's degrees. However, millions remain either unemployed or underemployed, stuck in low-end jobs that don't utilise their knowledge and skills.
The problems lie deeper.
A few days ago, the Bangladesh Bureau of Statistics (BBS) published the 'Quarterly Labour Force Survey 2024 Bangladesh'. It showed a surge in the unemployment rate to 3.51%. The unemployment rate for men rose to 3.59%, compared to 3.27% in the last quarter of 2023. The rate for females rose to 3.36% from 3.06% in the same period.
At the same time, the report shows that the industrial sector employed 12.7 million people during the January–March period of this year, representing a 4% year-on-year increase.
So, if the industrial sector is indeed creating jobs, why is unemployment increasing? Are recent graduates not filling these positions? Are they not skilled enough?
One explanation could be the growth in RMG exports, which is driving growth in the export-oriented manufacturing sector. This explains the positive net growth. However, our domestic manufacturing sector, which employs highly educated youth, has been in decline for quite a while now.
"The contribution of the manufacturing sector to our GDP has shown a negative growth rate for the last two quarters," said Dr Professor Mustafizur Rahman, Executive Director of the Centre for Policy Dialogue (CPD). "Having negative growth in two consecutive quarters means recession. Yet, now they are showing a positive growth rate in employment. It doesn't add up."
"It would mean that the domestic market is seeing such a downturn that despite the growth in the export-oriented market, the net growth rate has been negative."
It goes without saying that the current economic situation is not favourable to job-seeking youth. As a result, the number of unemployed youth is increasing, indicating growing frustration and a decline in job search activity. This effectively removes them from the labour force.
"Most of the young unemployed people are highly educated graduates," said Dr Zahid Hussain, the former lead economist of the World Bank's Dhaka office. "They are looking for jobs but cannot get them."
"Those who are looking for jobs are not getting them, and those who are looking for skilled employees are not finding them," he added.
The number of jobless men rose by 2% this year. It was 1.71 million a year ago, and now it is 1.74 million. This contradicts the narrative that the economy is not weak and is creating jobs. It points to one thing: the employability of our fresh graduates is poor, and there persists a skill mismatch.
A graduate-churning mill
"Poorly-trained graduates are the result of a flawed education system," Dr Hossain said. "Their expectations do not match the reality of the job market. And, the biggest reason for this, is the lack of quality theoretical and vocational education."
A number of studies have suggested that universities and educational institutions do not adequately train graduates with the necessary competencies. They lack access to skill development initiatives, forcing them to address this gap on their own.
However, numerous challenges hinder their efforts. These obstacles include Bangladesh's socio-economic issues, such as limited social justice, a digital divide, uneven education quality, and a lack of government support.
And it exposes a fundamental flaw in our education system. It has become a 'certificate mill', void of producing skilled employees.
"Most higher education institutions in Bangladesh have been churning out graduates without educating them; hence, employers report a shortage of candidates with hard, soft, and technological skills," said Dr Zahid Hossain.
"There has been an increase in the need for employees with a broad range of skills that complement their education. Employers are increasingly valuing soft skills in addition to hard skills," he added. "But, when it comes to employment readiness, Bangladesh's youth may be lacking the necessary skills that the country's existing educational system cannot provide."
"In the coming days, the fourth industrial revolution (4IR) will change the labour market as we know it. Yet, our education system is not ready for it," said Dr Mustafizur Rahman. "Our traditional economy and traditional training will be rendered inadequate. If a graduate cannot even write an email or negotiate with a foreign buyer, then how can they be employed?"
Employability is a key indicator of a quality education system. If graduates struggle to find work due to a skills gap, it suggests the education system isn't effectively preparing them for the workforce.
Not the government's cross to bear alone
One of the oft-quoted solutions to reduce the number of graduates is reducing the seats in liberal arts. It may make sense at face value, as a staggering 25% of fresh graduates from national universities remain unemployed, and most of them are from the liberal arts.
But is it the only solution? Dr Zahid Hossain thinks otherwise.
"The idea of liberal arts being easy is a widespread belief in the country. And it is not the subjects' fault. You cannot deny that people perceive these subjects as an easy way out of university. But in reality, liberal arts is neither easy nor unimportant."
He thinks the way to reduce liberal arts graduates is to raise the bar high enough to ensure only passionate students can pursue them.
"At the same time, policymakers need to modernise the curriculum of vocational training," he added. "The National Skills Development Authority was established in 2019. Yet, we have not seen its impact on the bigger picture of the labour force. Such initiatives need to be carried out efficiently."
"The chairperson of the governing body of the National Skills Development Authority is Prime Minister Sheikh Hasina," said Dr Mustafizur Rahman. "It shows how much importance the institution is given. Yet, we are not seeing its results. Such measures need to be taken under stricter supervision."
Collaboration between governments, universities, and the private sector is essential to improving graduate employability. By working together, they can develop programmes that equip graduates with the skills needed for the current job market.