Bangladesh is facing an unprecedented slowdown in job creation as political and economic instability continues to tighten its grip on the country. With the economy grappling under pressure from inflation, political turbulence, and shrinking investments, the job market has stagnated, leaving thousands of educated youth and experienced professionals without viable employment options.
According to the Bangladesh Bureau of Statistics (BBS), the labor force in the country is growing rapidly, yet opportunities remain scarce. Unemployment rates have surged, especially among tertiary-educated youth, who are finding it increasingly difficult to secure jobs. A recent World Bank report titled Bangladesh Development Update revealed that 27.8% of unemployed individuals in 2022 were educated at the tertiary level, a sharp increase from just 9.7% in 2013.
Economic Slowdown Hampers Private Sector Growth: The main culprit behind the stagnant job market is the economic slowdown. Despite an average growth rate of 6.5% over the past few years, the country’s economic recovery has been sluggish, hindered by rising inflation and a low rate of credit growth. Data from Bangladesh Bank reveals that credit growth has plummeted to a four-year low of just 7%, impacting the private sector’s ability to expand. Without access to capital, businesses have been forced to cut back on hiring, freeze expansion plans, and reduce their workforce.
Additionally, businesses in key sectors, such as manufacturing and IT, are facing immense pressure due to declining demand, political uncertainty, and high operational costs. The national steel demand, for example, has dropped by 20% as a result of government austerity measures and private sector challenges.
Job Market Shows Stagnation: The private sector, which employs the vast majority of Bangladesh’s workforce, has seen a notable reduction in new hiring. Bdjobs, the country’s largest job portal, reports that while job postings slightly increased in August after the fall of the Awami League government, they dropped again in September due to ongoing political instability. "The job market in the country has lost momentum, and there has been hardly any growth in the last six months due to a lack of new investment," said Prokash Roy, a director of Bdjobs. Prokash highlighted that companies are mainly hiring to replace vacant positions rather than creating new ones. Recruitment in sectors such as IT has slowed dramatically, with many graduates opting for international freelancing due to limited opportunities in the local market. Fahim Mashroor, managing director of Bdjobs, expressed concerns that the decline in investment appetite has made it difficult to predict when the job market will recover.
Impact on Youth Employment: The most affected group in this job crisis are young people, especially those who have completed higher education. With the economic downturn, the private sector is unable to absorb the growing number of graduates entering the job market. Despite the increasing number of tertiary-educated youth, their unemployment rate has surged to alarming levels. These young individuals, who invested years of study to attain higher qualifications, are now facing an uncertain future as companies are either downsizing or unwilling to hire.
The situation is particularly dire in the IT sector, which has traditionally been a source of employment for young, educated professionals. Mostafizur Rahman Sohel, managing director of Advanced ERP (BD) Ltd, noted that many IT companies had to reduce their workforce due to a shrinking local market, with government procurement almost coming to a halt. "We were already operating with a workforce of around 100,000 IT professionals, but that number has since dropped to around 70,000 to 80,000," Sohel explained.
Political Instability Fuels Uncertainty: The ongoing political instability has further aggravated the situation. With frequent changes in government policies and a volatile political climate, investor confidence has taken a major hit. Businesses are reluctant to make long-term commitments, further hindering the creation of new jobs. Moreover, inflation, which continues to outpace wage growth, has forced many companies to shift from hiring new employees to optimizing existing staff and controlling costs.
Shams Mahmud, former president of the Dhaka Chamber of Commerce and Industry, pointed out that inflation has forced companies to use their accumulated funds for working capital instead of investing in capacity expansion. "Businesses are in survival mode," Mahmud said, adding that the job market will likely continue to shrink unless political and economic stability is restored.
A Bleak Outlook for Job Seekers: The job market in Bangladesh faces a bleak outlook as economic and political instability continues to constrain growth. While the private sector remains the backbone of employment, its ability to absorb new workers has diminished, and job seekers are left in an increasingly competitive environment. With political uncertainty showing no signs of abating and the economy showing limited signs of recovery, the road ahead for job seekers appears to be fraught with challenges.As the economy slows down, the gap between job seekers and available opportunities continues to widen. The ripple effect of economic instability is felt not just by those seeking their first job, but also by experienced professionals whose prospects have significantly diminished. The situation remains precarious, and experts urge policymakers to take swift and decisive actions to restore investor confidence, stabilize the economy, and create an environment conducive to job growth. Until then, job seekers across the country will have to navigate a tough job market with limited options.
Bangladesh’s job market is facing an unprecedented crisis as the private sector, the backbone of the country’s workforce, is stalling under economic pressures. According to a recent report by the World Bank, the rate of unemployment has surged, particularly among tertiary-educated youth. The report, Bangladesh Development Update, published in October 2024, highlights that 27.8% of the unemployed in 2022 were tertiary-educated-an alarming rise from just 9.7% in 2013. The increasing difficulty for graduates to find jobs signals a troubling trend for the nation’s labor market and economic stability.
Political Instability Weakens Investor Confidence: Political uncertainty has also been a key factor in stalling job creation in Bangladesh. Political instability and disruptions have weakened investor confidence, further delaying investments that could create new jobs. Following the fall of the Awami League government, the country saw a brief surge in job postings on Bdjobs, the country’s largest job portal. However, this spike was short-lived, and job postings quickly dropped again as political tensions continued to rise.
Businesses are reluctant to expand or even maintain operations amid the uncertainty, and recruitment has slowed dramatically. Bdjobs Managing Director Fahim Mashroor confirmed that companies are primarily hiring to replace vacant positions rather than creating new ones. "Investment appetite is declining, and fresh job creation is limited," he said, signaling that the job market is losing momentum with little hope for immediate recovery.
Businesses in Survival Mode: Across various sectors, businesses are in "survival mode," focusing on cost-cutting measures rather than expanding their workforce. Shams Mahmud, former president of the Dhaka Chamber of Commerce and Industry, pointed out that companies are using accumulated funds to cover operational costs, rather than investing in growth. "Prolonged inflation has forced businesses to prioritize working capital over capacity expansion," he said. This shift in priorities has contributed to the stagnant job market, with companies hesitant to make new hires.
No Immediate Relief in Sight: As the job market stagnates, many businesses are postponing expansion plans and struggling to survive. Even when positions do open up, the labor market is flooded with applicants, making it harder for job seekers, particularly young graduates, to find employment. "The slow economy delays full recovery," said Shams Mahmud, adding that while some displaced workers have found new jobs, the lack of business expansion leaves little hope for a robust job market recovery
The crisis facing the job market in Bangladesh is multifaceted, involving a combination of economic downturns, political instability, and shrinking industrial demand. While there are some sectors-like export-oriented firms-that are experiencing recovery, the overall employment landscape remains bleak, especially for educated youth. Without a significant shift in both the economic and political climate, the job crisis is expected to persist, making it increasingly difficult for Bangladesh’s labor force to recover and thrive.
Economic Crisis Worsens Unemployment in Bangladesh amid Political Instability: Bangladesh is grappling with an escalating unemployment crisis, exacerbated by a combination of economic slowdown, political instability, and ongoing labor market disruptions. According to the Bangladesh Bureau of Statistics (BBS), a total of 2.66 million individuals were unemployed during the July-September quarter of 2024, further illustrating the growing strain on the nation’s labor force. These figures mark a worrying trend as the economy struggles to maintain momentum amid mounting challenges.
The country’s economic challenges, which include rising inflation, reduced industrial output, and political unrest, have led to widespread job losses. Businesses, especially in labor-intensive industries such as garments, have been forced to scale back production, resulting in layoffs and temporary closures. The downturn has significantly impacted the working population, particularly in sectors that have been critical to the country’s export-driven growth.
Unemployment Surge amid Economic Downturn: The Bangladesh Bureau of Statistics (BBS) report paints a grim picture of the state of employment in the country. With 2.66 million people officially listed as unemployed during the July-September period of this year, the nation’s jobless rate has been significantly affected by the ongoing economic crisis. Economic slowdowns often result in businesses cutting costs, and one of the first measures many take is reducing their workforce, either through layoffs or hiring freezes.
The garment industry, one of the largest employers in the country, has felt the most severe impact. Between January 2024 and March 2025, 113 garment factories ceased operations, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). This closure of factories led to a staggering loss of 96,000 jobs in the sector. These figures underline the significant toll that the economic crisis has taken on the most vulnerable workers in Bangladesh, who depend on the garment sector for employment.
Factory Closures and New Employment Opportunities: Despite the heavy losses in the garment sector, there is some hope in the form of new factory openings. During the same period, 128 new factories were established, offering jobs to 74,081 workers. While the establishment of new factories is a positive development, the number of new jobs created is still far below the number of positions lost, leading to a net reduction in employment opportunities.
The creation of these new jobs also highlights a broader trend in Bangladesh’s labor market: while new industries may emerge, the nature of employment is shifting. The new factories may not always provide the same working conditions or wage levels as the ones that have closed, which further complicates the issue of job security and income inequality for many workers.
Political Instability’s Role in the Crisis: Political instability in Bangladesh has further compounded the economic slowdown. Periods of political unrest, including strikes, protests, and violent demonstrations, have disrupted industries and made businesses hesitant to expand or even maintain operations. The labor market is particularly vulnerable to these disruptions, as both domestic and international businesses struggle to navigate the volatile political climate.
Political instability often leads to an increase in economic uncertainty. Businesses are less likely to make long-term investments in such an environment, leading to slowdowns in industrial growth, delays in production schedules, and, ultimately, fewer job opportunities. As companies cut back or even close down, workers are left with limited options for securing new employment.
The Human Cost of Economic Decline: The rising unemployment rate and factory closures are not just statistical trends; they represent real human suffering. Workers in Bangladesh, particularly those in the garment sector, often have few alternative employment options. Many rely on these jobs to support their families, and the loss of their livelihood leads to significant hardship. In addition to the immediate financial strain, unemployment also contributes to rising poverty levels, reduced access to education, and increased social inequality.
For those who do manage to find new jobs, the situation remains precarious. New factories may offer employment, but wages and working conditions may not be comparable to those at older, more established factories. Workers may find themselves with fewer benefits, less job security, and reduced opportunities for career advancement. The lack of stability in the labor market has long-term implications for workers’ mental and physical well-being.
Government Response and Future Outlook: The government of Bangladesh has faced significant challenges in addressing the growing unemployment crisis. In response to the economic slowdown and job losses, the government has been focusing on both short-term relief measures and long-term economic reforms. However, experts argue that these efforts are insufficient in tackling the scale of the unemployment issue, particularly given the impact of political instability and the ongoing global economic slowdown.
To address the immediate job crisis, there have been calls for the government to implement more targeted policies aimed at stimulating employment in sectors outside of garments, such as technology, renewable energy, and services. Encouraging investment in these industries could help diversify the labor market and reduce the country’s dependence on a single sector for job creation.
However, the path to sustainable employment creation is fraught with challenges. Addressing the root causes of unemployment, such as political instability and economic mismanagement, requires a long-term commitment to structural reforms. Without resolving these fundamental issues, any efforts to boost employment in the short term will likely fall short.
