Employment and Unemployment situation in Bangladesh:

A dismal picture of Development.

Sarder Syed Ahmed*
Md. Rezaul Karim Khan**
Introduction:
Employment is the main source of earning income and livelihood for most of the people of
Bangladesh. Employment and poverty are closely related with each other. Poverty reduces
with the augmentation in employment. Employment creates earning capacity and ensures
workers entitlement on goods and services. Employment greatly depends on investment.
Investment is the most vital factor for economic growth and development. Investment
generates employment. Creation of employment opportunities is important for poverty
alleviation and sustainable development. Employment not only helps the unemployed but
also his/her family members to meet basic necessities of life. Their expenditures create
multiplier effects on the economy. Unemployment and poverty are two great problems in
Bangladesh. If sufficient jobs are not generated unemployment problem will create many
complex social and political problems. If sufficient employment opportunities are not
created present declining rate of poverty may further revert back. One third of the
households in Bangladesh still live below the upper poverty line and 17 per cent live in
extreme poverty (HES-2010). Agriculture is still the dominating sector of the economy
where 47.3 per cent of labour force is engaged (LFS-2010).
The total labour force of the country is 56.7 million of which 69.6 percent is male (39.5
million) and the rest 30.4 percent is female (17.2 million). Most of the female labour force
employed in household work which is not included in counting GDP. The rate of
unemployment is 4.5 per cent. Number of day labour is 10.6 million, unpaid family helpers
are 11.8 million, and rate of under employment is 20.3 per cent. The labour force employed
in agriculture suffers from disguised unemployment and under employment.
* Professor and Research Fellow Centre for Transportation and Development Research, Vice
President BETA
** Lecturer Economics, Basail Emdad Hamida Degree College, Tangail.
1

The youth and educated labour force of the country mostly suffers from unemployment and
under employment. The economy of Bangladesh

expands 5.8 per cent yearly but the

labour force was increased by 4.6 per cent during the period 2000 to 2010. A total of 15.1
million new jobs were created but 20.1 million new labours entered in to the labour force
(World Bank-2012). The unemployment was 1.3 million in 1995 which has been increased by
100% and stood at 2.6 million in 2010. If the unpaid family helper takes in to account
unemployment stood at 8 million in 2010 which may be more than 10 million at present.
The above facts indicate the dismal picture of growth and development of Bangladesh.
1. Objectives of the paper:

The general objective of the paper is to assess present employment and

unemployment situation of Bangladesh.

To find out effects of globalization and environmental degradation on employment.

To find out causes of slow growth of employment in the country.

To suggest measures to increase employment opportunities and to reduce

discrepancies in service related matters.

2. Methodology and data sources

The study is an analytical research. Data are collected form secondary sources, primarily
data are not collected. Sources of data are different published reports, books and journals.
In the study simply statistical tables and graphs are used. Data collected from different
concerned organizations.
3. Labour Force and Employment Situation of Bangladesh
Bangladesh is a labour surplus country with a population of 156 million. In 1995-1996
population was 122.1 million and labour force was 36.1 million while percentage of labour
force in total population was 29.56 percent. With the increase of population share of labour
force in total population increased and stood at 38.3% and labour force increased to 56.7
million in 2010 while population was 147.7 million. It can be seen from the table-1 & figure1 that percentage of labour force had been increased by 57% from 1995-96 to 2010. It is

observed that since 1995-96 to 2010 average annual growth of labour force was 2.06%.
During the same period 1.37 million labour added with labour force.
Table 1
Labour Force and Employment Situation (Million)
Sl.No.

Year

Labour Force

Employed

Unemployed

01

1995-96

36.1

34.8

1.3

02

1999-00

40.7

39.0

1.8

03

2002-03

46.3

44.3

2.0

04

2005-06

49.5

47.4

2.1

05

2010

56.7

54.1

2.6

Source: BBS, Labour Force Surveys,

* Rate of Employment & Labour Force Growth Rate for 2009, From 6th Five
Years Plane.
Figure-1
Labour Force and Employment Situation (Million)

60
50
40
30
20
10
0
1

Labour Force

Employed

In 1995-96 employed labour force was 34.8 million which increased to 54.1 million in 2010.
During the period 19.3 million additional employment was created. From 1995 to 2010
average annual groth of employed was 1.28 million and from 1999 to 2010 total 15.1 million
new jobs were created.
3

4. Labour force participation.

Rate of labour force participation in 1974 was 43.8 percent which stood at 59.3 per cent in
2010. It was 15.0 per cent higher than labour force participation of the year 1974. Labour
force participation rate is increasing and in 2010 it increased to 59.3 percent. The increase in
labour force is mostly due to increase of female labour which increased from 4.1 percent to
36 percent from the year 1974 to 2010. Male labour participation rate fluctuated during the
period (table2)
Table 2
Labour Force Participation Rate by Gender (%)
Period

Labour Force
Participation

Male

Female

1974

43.8

80.4

4.1

1981

44.3

4.3

1984

43.9

78.5

8.0

1985

43.9

78.2

8.2

1986

46.5

81.4

9.9

1989

47.0

1991

48.8

1996

52.0

87.0

15.8

2000

54.9

84.0

23.9

2003

57.3

87.4

26.1

2006

58.5

86.8

29.2

2010

59.3

82.5

36.0

Source: Bangladesh Bureau of Statistics, Labour Force Surveys

Due to expansion of female education female employment increased. Self-employment in

non-agricultural activities increased due to micro credit of NGOs where females are the
main borrowers.
5. Employment by Gender and by locality
During a decade from 2000 to 2010 the number of male employment increased from 31.1
million to 37.9 million i.e. an average annual increment of .68 million. The number of total
employment was 39 million which stood at 54.1 million, which means 15.1 million additional
employments. Female employment increased from 7.9 million in 2000 to 16.2 million in
2010, implying an annual growth of .83 million and total 8.3 million. The rural employment
is more than 3 times than in urban area. Rural employment was 30.3 million in 2000 which
stood at 41.7 million in 2010 (Table 3 and Figure -2).
Table 3
Employment of Labour Force by Gender & by Location of Residence (Million)
By Sex

By Locality

Sl. No.

Year

Total

Male

Female

Total

Rural

Urban

01

2000

39.0

31.1

7.9

39.0

30.3

8.7

02

2002-03

44.3

34.5

9.8

44.3

33.6

10.7

03

2005-06

47.4

36.1

11.3

47.4

36.1

11.3

04

2010

54.1

37.9

16.2

54.1

41.7

12.4

Source: BBS, Labour Force Surveys,

Figure-2
Employment of Labour Force by Gender

60

54.1

50
40

47.4

44.3
39
31.1

36.1

34.5

37.9

30
20

9.8

7.9

10

16.2

11.3

0
1

Total

Male

Female

It is seen from the table-3 & that rural employed had been increased from 30.3
million in 2000 to 41.7 million in 2010. In the urban areas employment of labour force
increased at the rate of 4.25 per cent which is higher than rural areas (37.87 percent). Due
to urbanization, rural-urban migration has increased largely but still rural economy is the
main source of employment generation. Nonfarm activities in rural areas have increased at
higher rate. As a result employment in rural areas have increased from 30.3 million to 41.7
million during the period.
The labour force in Bangladesh has expanded rapidly over the last two decades. The
total labour force was 63.8 million (including temporary migrants abroad) in 2010 compared
with 43.7 million in 2000. The vast majority (87 percent) of the total employed labour,
particularly female are engaged in informal activities. Of the total female employed labour
force 92 per cent was employed in informal sector, compared to 85 per cent male labour.
Self employed workers constituted (22 million) the largest group accounting 41 per cent of
total working labour in 2010, followed by unpaid family helpers 22 percent (11 million).
More than 60 percent female labour worked as unpaid family workers in 2010. Percentage

of employed population declined from 44.2 percent in 2000 to 44 percent in 2010 (WB2012).
6. Share of Employed Labour Force (Above 15 years) by Sector
It is evident from the appendix table-2 that agriculture sector is still the highest source of
employment .In the year 2010, 47.33 percent of labour force was employed in agricultural
sector. Between the Labour Force Surveys of 2005-2006 and 2010 the number of
agricultural workers decreased by 0.77 percent (below one percent). In 2010, 15.47 percent
of labour force is employed in trade, hotel and restaurant which is the second highest sector
of employment. Employment in manufacturing is increasing at a very slow rate. In 1995-96
its share in employment was 10.06 percent and in 2010 it stood at 12.34 percent. The share
of transport and communication was 7.37 percent and construction was 4.79 percent.
7. Unemployment and Under Employment Situation:
Under employment increased from 16.6 percent to 20.3 percent during 2000 to 2010.
During this period 20.1 million new labour joined the labour force. The rate of employment
is 3.1 percent but the growth rate of labour force is more than the rate of employment.
From the figure 3 and 4 it can be seen that in 1995-1996 the rate of unemployment was 2.5
percent and in 1999-2000 the rate increased to 4.3 percent but from 2005-2006 the rate
declined. In 2010 the rate of employment increased but the rate of unemployment was also
increased and stood at 4.5 percent.The rate of unemployment was 2.5 percent in 1995-1996
but it increased to 4.5 percent in 2010. (Table:4 & figure 3)
Table-4
Rates of Employment and unemployment (1995-2010)
Sl.NO

Year

01
02
03
04
05

1995-96
1999-20
2002-03
2005-06
2010

Rate of Employment
1.9
2.9
4.3
2.3
3.1

Rate of
Unemployment
2.5
4.3
4.3
4.2
4.5

Labour Force
Growth Rate
2.2
3.0
4.3
2.3
3.2

Source: BBS, Labour Force Surveys,

Rate of Employment & Labour Force Growth Rate for 2009, From 6 th Five Years Plane.
7

It can be seen form table 4 & Figure 3 that labour force growth rate is higher than the rate
of employment and the rate of unemployment is higher than the rate of employment. It is
also observed from figure 3 that except 2002-2003 the rate of unemployment is always
higher than the rare of employment.
Figure-4
Situation of unemployment (1995-2010 in million)

2015

2010

2.5

2005

2000

1.5

1995

1990

0.5

1985

0
1

Year
Unemployed

It can be seen from Table-1 and Figure 4 that in 1995-96 unemployed was 1.3 million
whcih increased to 1.8 million in 1999-2000. In 2005 & 06 unemployed was 2.1 million
whcih stood at 2.6 million in 2010 whcih means 0.5 million addtional unemployed. The
trend of unemployment is rising.
8

Educated unemployment is a problem in Bangladesh. The percentage of educated

unemployment in Bangladesh is more than that of India. The percentage of educated
unemployment in Bangladesh is 14 percent and in India it is 11 percent. In Vietnam it is 5
percent only (6th five year plan)
Table-5 shows unemployed persons aged 15 years and above by level of education and
unemployment.
Table-5
Unemployed Person aged 15 years and over by level of education and unemployment
Sl. No.

Level of Education

Total (000)

Unemployment Rate

1.

Class I V

491

3.79

2.

Class VI VIII

419

5.18

3.

Class IX X

364

7.16

4.

SSC/Equivalent

258

7.33

5.

HSC/Equivalent

288

13.74

6.

Masters/Equivalent

84

10.25

7.

Engineering/Medical

15

14.27

Source: Labour force survey-2010 (P-76-77)(Table No.5.3)

It is observed from the table no. 5 that the highest unemployment rate was for those with
educational level engineering or medical (14.27%) followed by HSC (13.74%) and Master
degree (10.25%).
Unemployment rate as per definition of ILO is 4.5% but including the unpaid family labour
the unemployment rate stands at 14.16%. This rate is 6.63% for male and 31.49% for female
(LFS-2010).
The under employment rate for aged 15 years and over by economic category at national
level is 20.31% and for urban area 12.40% and for rural area 22.67% (LPS-2010). In the
agriculture sector there is seasonal unemployment which is a common feature of
Bangladesh agriculture. In the agricultural sector due to structural change and introduction
9

of modern cultivation disguised unemployment has increased where marginal productivity

of labour tends to be negative or near to zero. Change in pattern of crop cultivation reduces
employment opportunities of agricultural labour. Educated unemployment is a great
problem in the country. Every year 3.5 lac students pass out holding degree and master
degree from the colleges and universities (23.10.14 The Daily Prothom Alo)
8. Globalization and Employment.
Globalization is a process of expansion of free trade, transformation and diffusion of
knowledge, increasing mobility of labour, increasing competition in the global market. The
forces and actors behind globalization process are Multinational Corporations, World Bank,
International Monitory Fund and World Trade Organization. World Trade created a
foundation of integrating of all economics.
Due to globalization the countries of the world have become boarderless. The whole world
has become free for multinational corporations to invest anywhere in the world, in the
name of FDI. The giant multinational companies now determine demand for goods and
services and consumption pattern of the world people. The economy of Bangladesh is
integrated with the world economy significantly which is a part of globalization process for
more than two decades. The economy of Bangladesh started to integrate with the global
economy since 1990s. In the 20th century Bangladesh was able to make herself free from
depending on foreign assistance and started to become a trade dependent nation. Due to
global economic changes Bangladesh economy has also undergone a massive change. The
structural change of the economy shifts the employment pattern of the country.
Due to globalization capital intensive production technology is imported and used in
different sectors of economy. Professor Anu Mohammad said that- due to trade
liberalization many of our textile, vegetable-oil, paper, pesticides, rubber and foot wear
industries were shutdown and as a result number of jobless people increased. Among 2000
sick industries about 200 industries were shutdown for direct impact of trade liberalization
(Ahmed-2007). After phase out MFA and quota from 2004, Bangladesh had to face keen
competition with China, India, Pakistan, Korea and Hong Kong. Bangladesh is a signatory of
Trade Related Intellectual Property Rights of Agreement of WTO. A few multinational
corporations enjoy the benefit of this agreement. They control our pesticides and
10

pharmaceutical production of the country. They occupy our telecommution and other
important services sector. Due to effects of market economy government industries were
privatized or declared lay off. The jute mills of Bangladesh have been destroyed and
thousands of people lost jobs and became unemployed. Only in Adamjee Jute Mill a total of
40,000 workers lost their jobs. City of industry Khulna became lifeless due to shutdown of
the jute mills.
Once Bangladesh was famous for hand loom industry but after the introduction of market
economy hand looms started to shutdown. At present 5.70 lack weavers of 38% hand looms
become unemployed due to introduction of power loom (BER-2013).
The cottage industries in rural areas have been destroyed. Gold smith, black smith, porter
etc. left their professions due to loss of market of their products. The local industries have
been destroyed due to uneven competition from the multinationals. We have a large
population but the market is under the control of multinationals due to trade openness or
import liberalization and FDI. .
Globalization has some positive effects on employment. International labour migration is a
significant feature of globalization. Due to globalization international migration has become
increasingly important factor. Globalization makes room for millions and millions of
unemployed workers to be employed in different parts of the world. Bangladesh is a labour
surplus country. From 2004-2005 manpower export of Bangladesh is increasing year after
year. Since 1976 a large number of Bangladeshi migrant workers have migrated to Middle
East countries and East Asian countries.
9. Environmental degradation and Employment in agriculture
Structural change of Bangladesh agriculture has taken place very slowly. Mechanical devices
such as tractors, power tillers etc. reduced the use of animal power and human labour. All
these factors reduce employment opportunities in rural sector. Rural Bangladesh was full of
much common properties like ponds, open water fields, canals and rivers, grass land and
gardens. The poor people could enjoy the above common properties like other public goods
and could create self employment. Due to degradation and destruction of environmental
goods employment opportunities are reduced. Over and above the cultivation of HYV
11

requires pesticides and chemical fertilizer which degrade land fertility and create water
pollution. Once open field-water was an abundant source of fish. But due to scarcity of
water flood plain water fish resources decreased. Use of Pesticides and chemicals are added
fuel to fire the problems & reduce employment opportunity of the rural poor. Employment
in livestock sector reduced due to mechanization in crop cultivation. This sub-sector is
labour intensive and provides employment for 20% of population but mechanization
reduces the use of livestock in farming. Now the rural households do not rear livestock due
to lack of feeds and lack of time. Animal power is now useless and costly to use. We are
losing cow dung as a manure and fuel for cooking, milk as delicious drink, nutritious meat
and raw materials for leather industries. As a result many people who were engaged in
livestock rearing became unemployed. In some cases mechanization helps to increase
employment opportunities. For HYV and hybrid seeds, irrigation is essential and boro rice is
more labour intensive than transplanted in Amon. Aus is

labour intensive but the

cultivation area of Aus is very limited. Robi crops were also important source of
employment for rural woman and it was feeds for livestock and domestic birds. After
introduction of HYV, cultivation of robi crops decreased.
Employment and poverty greatly depend on natural resources especially on water
resources. Water is essential for agriculture and its productivity. Bangladesh is deprived of
her due share of water of the Ganges Employment related to water resources such as
fishing, boats, fishing traps and boats making have been reduced to a great extent. Due to
scarcity of surface water agriculture productivity hampers in different region of Bangladesh.
Environmental degradation and ecological imbalance are mainly for the adverse effect of
Farakka Barrage.
10. Increase of employment since 2000 to 2010
It is evident from table 6 that majority of the working labour force are employed in the
agriculture sector and it is increasing. From 2005 to 2010 about 3 million increased in this
sector. It is seen from the table 6 that in 1999-2000 employment in manufacturing sector
was 3.7 million.

12

Table 6
Employment by Major Industry, 1999-2000 to 2010 (In million)
Sector

19992000

200203

200506

19.80

22.90

22.80

25.70

Mining & quarrying

0.20

0.10

0.10

0.10

Manufacturing

3.70

4.30

5.20

6.70

Electricity, gas & water

0.10

0.10

0.10

0.10

Construction

1.10

1.50

1.50

2.60

Trade, hotel & restaurant

6.10

6.70

7.80

8.40

Transport, maintenance &

communication

2.50

3.00

4.00

4.00

Finance, business & services

0.40

0.30

0.70

10.00

2.5

2.6

2.3

Commodities & personal services

5.10

2.70

2.60

3.40

Total

39.00

44.30

47.40

54.10

Agriculture

Public administration and defense

2010

Source: BBS Labour Force Surveys 1992 to 2010.

From 2005-2006 it was 5.2 million and stood at 6.7 million in the year 2010. In the
construction industry 73.3 percent employment has been increased from 2005-2006 to
2010. In the year 2010 number of employed in this sector stood at 2.60 million which was
more than double of the year 1999-2000. Employment in trade, hotel and restaurant
increased by 7.6 percent from 2005-2006 to 2010 and stood at 8.4 million. The participation
of labour force increased in a great extent in the finance and business service. In the year
1995 where 0.57 million people were engaged in this sector it increased to 10 million in the
year 2010. This sector is now also the second highest employment sector after agriculture.

13

11. Employment by Broad Sectors:

The growth dimension is largely provided by modern manufacturing and service sector. The
transformation of a peasant agrarian economy to an organized manufacturing and service
economy also provide the employment opportunity for absorbing growing labour force into
productive and good jobs. The nature of the shifts of main sectors are shown in the
appendix table no.3 It is observed from table 3 that over the three decades the share of
the industry sector to GDP increased gradually and continued to increase. In 2012-2013 it
stood at 31.19 percent from17.31 percent of the year 1980-81. The share of agriculture to
GDP decreases and stood at 19.42 percent only. The share of GDP in service sector is
increasing gradually and stood at 49.45 percent in 2012-2013. (Appendix table-3) The
average labour productivity has increased since 1971 but from a very low base. The average
labour productivity in Bangladesh is low in comparison to other countries. It is US$ 125 in
Bangladesh. The average labour productivity in India is US$ 206, US$339 in China, US$ 232
in Sri Lanka, US$335 in Indonesia and US$136 in Vietnam (6 th five year) plan. In the 1970s
and 1980s manufacturing sectors performance was constrained by the dominance of poor
performing nationalized enterprises, in ward looking trade policies and inadequate private
industrial investment due to poor incentives. Bangladesh has made progress in specializing
in labour intensive manufacturing (e.g. R.M.G and foot wear) where its comparative
advantage lies. The share of manufacturing in total employment remains virtually stagnant
around 8% until the 1990s. This share began to rise slowly and the job creation effect of the
RMG sector began. As a result the employment share has now grown to 12 percent (6 th five
year plan). The service sector has performed relatively better than agriculture and
manufacturing and has been most important contribution to growing acceleration in
Bangladesh. The trade policy of Bangladesh shifted to free trade or openness. Trade barriers
removed to integrate with global economy. Hundreds of industries closed down in the initial
stage of free trade regime . Now the labour intensive RMG sector has become most
important manufacturing industries and our export composition have changed. RMG takes
the place of primary agricultural product and jute goods. RMG sector now contribute about
80% of export earnings. The ability of manufacturing sector to create jobs has been sharply
weaker than its growth and export performance.

14

Table-7
Shift in the structure of Employment (In million)
Broad sector

1999-2000

2002-2003

2005-2006

2010

Agriculture

19.8 (50.76)

22.9 (51.69)

22.8 (48.10)

25.7 (47.50)

Manufacturing

3.7 (9.48)

4.3 (9.71)

5.2 (10.97)

6.7 (12.38)

Services

15.5 (39.75)

17.1 (38.60)

19.4 (40.93)

21.7 (40.12)

Total

39.00(100)

44.3(100)

47.4(100)

54.1(100)

Source: 6th five years planning and BBS-Labour forces Survey-2010

Figure in parentheses indicates percentage.
Figure -5

100%
80%
60%
40%
20%
0%

2000

50.76

figure-6

9.48

100%
80%
60%
40%
20%
0%

39.74

2010

47.5

12.38

40.11

Series1

Series1

It is seen from the (table7 and figures 5 & 6) that in 1999-2000 employment in
manufacturing was 3.7 million which increased by 6.7 million in the year 2010. In the same
period employment in service sector was 15.5 million that increased to 21.7 million in the
year 2010. In manufacturing sector 12.38 percent, agriculture 47.50 percent and in service
sector 40 percent labour force were employed in the year 2010.
The 6th five year plan states that only 22 percent of the employed labour force is engaged in
the formal sector. Thus some 11 percent of employed labour is in manufacturing and
another 11 percent in is on organized services. The remaining 78 percent is still engaged in
informal actives. The responsiveness of employment of growth in manufacturing is low.
Between 1981 and 2010 value added in manufacturing grew by 6.4 percent annually
15

whereas employment increased by 3.9 percent. The weak progress in transforming the
labour market is an indication of major weakness in the Bangladesh development strategy
(6th five year plane).

12. Present employment situation

Investment in the industrial sector generates large number of managerial, technical,
supervisory and skilled-unskilled job opportunities. In the year 2001 actual FDI inflow to
Bangladesh was 354 million US dollar which stood at 1136 million US dollar in the year 2011.
In 2001 total investment projects registered with BOI were 1,05,400 crore taka which
increased to 8,78,932 crore taka in 2011-12 (BER 2012). But employment creation in
industries gives a glomy picture. Number of employment is very low dut to adaption of
capital intensive technology.
Table:8
Employment in industries and over seas employment
2001-2013
Sl.No

Year

No. of jobs
Projected

No. of
migration
workers

Total
employment

01

2001-02

373625

188465

582521

02

2002-03

273754

225256

499010

03

2003-04

319516

254140

573706

04

2004-05

425232

272458

698190

05

2005-06

428529

252702

671231

06

2006-07

458478

381516

839994

07

2007-08

410744

832609

1243353

08

2008-09

308037

875055

1183092

09

2009-10

330663

475278

805941

10

2010-11

503662

340702

844364

16

11

2011-12

451114

568062

1019176

12

2012-13

309000

607798

916798

Total=

4659348

5325091

9984419

Source BOI registered industries from BER 2014

Migrant workers BMET-2013

Figure-7
Employment in industries and over seas employment

1400000
1200000
1000000
800000
600000
400000
200000
0
1

9 10 11 12

Total employment

It can be seen from (table no.8 & figure 7) that employment in industries from 2001-2002 to
2012-2013 were 4659348. In the same period 5325091 workers migrate to foreign countries
for employment. Average annual employment in industrial sector was 388279 and average
annual migrant workers were 443757. Employment in industries and over seas employment
together constitute annual average employment of 8320334 workers. Job creation for
8320334 people per year is not at all satisfactory. During the period form 2011-2013 total
6.3 million new jobs were cretated of whcih 4.8 million in domestic economy and 1.5 million
overseas (Ahmed-2014).
For attracting foreign investment Export Processing Zones (EPZ) are established in the
country. The cumulative investment in EPZ up to June 2013 stood at US $ 3001.74 million
and number of industries are 426 with employment of 3,82,230 persons only, 64 percent of
17

them are female. (BER2014). Political turmoil of Bangladesh in the end of 2013 causes
heavy losses to the economy. FDI have increased but private investment is in a stagnant
position. Employment opportunities are not created as was estimated.
Agriculture is still the dominating sector of the economy where 47.3% labour force engaged
though its contribution to GDP is only 19%. Employment in Agricultural sector is increasing.
The labour force engaged in agricultural suffers from disguised unemployment and
underemployment. The problem of youth and educated labour force of the country are
acute.
For creation of new jobs it is essential to increase investment in industrial sector. 15.1
million new jobs were created with an additional employment of 2.9 million in agricultural
during the period from 2005 to 2010 which means out of 15.1 million jobs 20% was in
agriculture. Employment in agriculture further means additional laour force contributing
nothing to total production. From 2011 to 2013 total number of labour force stands at 63
million (56.7 in 2010+6.3 in 2011-2013, based on annual additional labour force 2.1 million)
million. In the said period 6.3 million new jobs or employment opportunities were created
and employed labour force stood at 60.4 million (54.1 million in 2010 employed labour
force+6.3 million new employed labour forces in 2011-2013). So additional employment
stands at (63 minus 60.4) 2.6 million which means unemployment situation did not improve.
Number of unemployment remains the same.
Average productivity of labour in agriculture is very low. We should transfer people from
low productivity activities to higher productivity jobs. Bangladesh is a capital scarce country
due low level of saving and investment private investment is in a stagnant position. FDI is in
increasing tendency in the recent years. Foreign investors invest on chemical, textile & in
service sector. Employment opportunities have not increased as we needs. They invest in
capital intensive production technology. The mobile companies have employed only 13,000
persons as full time employees though they invest millions and millions of dollar.Local
national investment is discouraged though local investment is more labour intensive. Local
industries are suffering from market constrain. Without nationalitic feeling demand for local
goods will not be created. So reducing unemployment through industrial development is a
dream. To increase over seas employment is a good measure to reduce unemployment.
18

13. Employment in RMG sector

In the year 2000 total employed labour force was 39.0 million and in 2010 it stood at 54.1
million. In the same period employed female labour force was 7.9 million and 16.2 million
respectively. Employment of female labour force has been increased by 105% i.e. more than
double from 2000 to 2010 (Labor Force Survey 2010).
The share of woman employed in agriculture is now 41 percent and 28.1 percent in
manufacturing. 90 percent of the workers in garments are female. In 2010 about 35 percent
of the employed woman worked in non-agriculture sector of which more than a one third is
engaged in RMG sector (WB-2012).
In 2000-01 number of garment industry was 3480 which increased to 5150 in 2010-11. In
the same period employment in this sector was 1.5 million which increased to 3.6 million
(BBS 2012).

14. Over seas Employment:

International migration reduces poverty and provides employment and it is the second main
source (after RMG sector) of foreign exchange earning for Bangladesh. The total number of
exported workers of Bangladesh is 8.7 million and the volume of remittance inflow to
Bangladesh stood at 116566 million US dollar sicnce 1976 to 2013. In the year 2012-2013,
volume of remitance was 14461 million which is more than eleven percent of the countriys
GDP and about 53% of our export earning. (BER 2013 and Ahmed 2014). Bangladesh has
become as one of the largest remittance receiving countries of the world (World Bank
2012).. Bangladesh is the 8th largest remittance receiving country in the world BBS-SUR2013)
Due to global economic change export of manpower is increasing day by day. In 1976 only
6087 workers were exported to a few countries (10 to 15 countries). At present our labour
market is expanded spread to 159 countries of the world. (BER 2013 Major destination
countries of Bangladeshi migrants workers are Saudi Arab, UAE, Malaysia, U.K, U.S.A Oman,
Kuwait, Singapore, Qatar and Bahrain.
19

Our professional and skilled migrant workers destination countries are mainly the U.K,
U.S.A, Australia, Germany, Japan and Italy. From 2011 export of manpower is decreasing
due to deterioration of bilateral relation ship with some Middle East countries and G to G
agreement with Malaysia.
Table-9
Trends of migration and remittances since 2000-2001 to 2012
Year

No. of migration

Percent change

Remittance

Percent change

2000

213

-14.1

1882

-3.4

2001

195

-54.9

2503

32.9

2002

251

28.7

3060

22.2

2003

299

19.12

3372

10.2

2004

250

-16.3

3848

14.1

2005

291

16.4

4802

24.8

2006

564

93.8

5979

24.5

2007

981

73.9

7915

34.4

2008

650

-33.7

9689

21.9

2009

427

-34.3

10987

13.4

2010

439

2.8

11650

6.0

2011

691

54.4

12843

10.2

2012

492

28.7

14461

12.6

Source: Bangladesh Economic Reveiw-2012-13

20

Figure-8
Trends of migration and remittances since 2000-2001 to 2012
16000
14000
12000

7915

10000
8000
6000
4000
2000
0

1882 2503

3060 3372

3848

4802

14461
12843
11650
10987
9689

5979

564 981 650 427 439 691 492

213 195 251 299 250 291
1

No. of migration

10

11

12

13

Remittance

The export of manpower to Saudi Arabia was 73 percent in 2001 it has decreased to 2
percent in 2013. The share of migrant to Malaysia stands at 0.13 percent and in Kuwait it
was zero percent. From 2000 to 2008 migration was increased and after that it was
decreasing (BER-2013). If the decreasing trend continues the economy may face financial
crisis (Table-9, Figure-8).
Bangladesh exports manpower to forge in countries and earns huge volume of remittance.
But volume of remittance is very low in comparison to number of migrant. From 1976 to
2013 our stock of migrants stood at 8.7 million but their wage level is very low. Our migrants
skill level is very low. Less skilled consists of 53 percent and semiskilled 14 percent, skilled 31
percent and professional 2 percent (From 1976 to 2013) BMET 2013. Remittance per
migrant is only US $ 1672 which is 3 times above in India, more than 4 times in China and
above 13 times above in Belgium. (WB 2012) Most migrant workers engaged in temporary
jobs. Their jobs are contractual basis. Female migration is low which is 6.48 percent only.
Siddiqui (2012) female migrant workers may be increased if proper steps are taken.

21

The growth of migration is fluctuating. Political unrest in the Middle East countries, Gulf
war, American invasion in Iraq and civil war in Libya and political violence in Egypt, Syria,
Lebanon are responsible for fluctuation in migration.
Since 1976 Saudi Arabia, Kuwait and Oman are the major destination countries for
Bangladeshi migrant workers. Export of manpower to those countries fluctuated from time
to time. Economic condition, bilateral relationship and employment policy of those
countries are the causes of fluctuation.
Suggestion:
In order to create more employment opportunities and to solve the problems related to
services, the following measures are suggested:
1.

Educated unemployment is a great problem in Bangladesh.

An educated

unemployed is a victim of double loss. At the time of study he is to expend money

for his studies and he lost income during studies when he could earn.

The

government bears a portion of educational expenses. So unemployment is a huge

wastage of resources. Therefore, manpower planning is essential for Bangladesh.
2.

The quality of the higher educated in Bangladesh is now a burning question. People
think that the quality of higher education in the private universities is not up to the
mark or below the standard. Employers are unwilling to recruit the products of
private Universities. It is the responsibilities of the government to maintain quality
education. The government should take necessary steps to maintain standard of
degrees.

3.

There is discrepancy in recruitment policy & rules among the different organizations
regarding gender, educational qualification & recruitment process. A uniform equal
employment opportunity should be ensured by the government. To this end laws
may be passed.

4.

Age of entry in jobs in Bangladesh is also discriminatory. For the general job seeker
age is fixed at 30 years. Due to the increase of service age of the service holders for 2
or 3 years employment in government and semi government organization was
22

stagnant. The young job seekers are deprived of their due share because of increase
in service age. The age of entry level may be fixed at 32 years.
5.

The higher education of Bangladesh is expanding without any consideration of

employment. The government should be careful in establishing new universities. The
universities should not be the factories of producing unemployment.

6.

In the government and semi-government organizations different quotas system are

prevailing. All sorts of quotas should be rearranged for the greatest interest of the
nation. Due to quotas the meritorious job seekers are deprived of their due share
and the nation is also deprived of their service.

7.

Private sectors are the open field for exploitation of labors. They pay the wages of
labour according to their suit will. They impose iron law of wages in determining
wages. They do not follow any rules and regulations. The government should come
forward and take necessary actions to prevent exploitation and to establish justice.

8.

There is no employment policy and service rules consisting rights and privileges in
the private sectors. A national employment policy should be framed by the
government.

9.

To create employment opportunities more industries should be set up but

investment climate of the country is not favorable. Necessary steps should be taken
to improve investment climate of the country.

10.

Rate of interest in the country is very much high in the country. So cost of
investment is also high. Rate of interest should be fixed as minimum as possible.

11.

Political unrest and hartal is a common thing in the country. Political unrest should
be minimized to create favorable investment climate.

12.

The present trend of growth of industries is capital intensive nature. In order to

create more jobs labour intensive production technology should be adopted.

13.

There is discrimination regarding investment opportunities between local private

investors and foreign investors. Discrimination between local private investors and
foreign investors should be reduced.
23

14.

Technical education has direct relationship with employment. More technical job
oriented education system should be introduced .

15.

Technical education centers are to be set up for the people who want to go to
foreign countries for employment.

16.

At present near about 5 lac workers migrate to foreign countries annually. So the
migration process is to be simple and short.

17.

Labour productivity in Bangladesh is very low level in comparison to other Asian

Countries. In China it was US$ 339, Indonesia US$ 335, Srilanka US$ 232, India US$
208, Vietnam US$ 136 but in Bangladesh it is only US$ 125. So good jobs should be
created where labour productivity will be high.

18.

Unnecessary harassment by the dalals and manpower recruiting agencies should be

stopped by passing laws.

19.

Natural resources such as water, forest should be kept free from degradation.
Leasing Rivers, canals and common properties should be kept for common use so
that poor people have free access to those public properties where they will be able
to create self employment.

20.

Micro credit is a source of self employment but the rate of interest charged by the
NGO's is very high (30% - 35%). Interest rate of NGO's should be re-fixed at a
minimum level.

21.

Migrant workers remittances play a vital role in the economy of Bangladesh. The
volume of remittance was 14461 US million dollars in 2013 which was 11.45% of our
GDP. But 84% of remittance is used for consumption purposes. Measures may be
taken to increase savings and investment. Remittance may increase self-employment
and investment in joint venture industries.

22.

Recruitment process of government job is too much length and time consuming. The
Bangladesh Public Service Commission is over loaded. Several Public Service
Commissions may be established under certain jurisdiction.

24

23.

To find out the cause of failure of G to G argument with Malaysia and measures
should be taken to improve the situation.

24.

Steps should be taken to improve bilateral relationship with Saudi Arabia, UEA and
Kuwait to increase manpower exportation in those countries.

25.

To solve the problem of unemployment development of local industries is a vital

factor. Necessary measures should be taken to protect local industries.

26.

To increase overseas employment exploration of new labor markets is very

important. To this ends measures should be taken urgently.

14. Conclusion:
Most of our labour force is employed in agriculture where the labours suffer from disguised
unemployment and under employment. Any further increase of employment in agriculture
further lowers the productivity of labour. Scarcity of land has limitation for further
absorption of labour in agriculture.
Educational institutions become the factories of producing huge number of unemployed
people. So we should careful to establish new educational intuitions specially universities.
Steps should be taken to proper manpower planning. Export of manpower at present is
suffering from various problems. But we should remember that international labour
migration is the largest source of our productive employment. Labour migration reduces
unemployment and their remittance reduces poverty directly. Remittance is the single
largest source of foreign exchange earning in Bangladesh. So necessary measures should be
taken to increase manpower exportation and to increase remittances. Employment is
related to livelihood. It is a basic right of all citizens. It is the duty of the state to create
gainful employment for every citizen. All the citizens of the state are equal in the eye of law.
Equal pay for equal works is also a justice. In Bangladesh there are disparities of wages
between male and female, between government and private and among private and
private. So necessary laws are to be passed to eliminate discrepancies in employment,
recruitments, wages and other rights and privileges. National level employment policy may
be formed with a view to proper use of human resources. A service rule is a safe guard for
employees. A uniform service rule for all services irrespective of govt. and non-govt.
organizations may be introduced for the greater interest of the large number of labour
force.

25

Reference:
1.

Ahmed Sarder Syed (2007) - Globalization and the Economy of Bangladesh-BEA.

a.

Ahmed Sarder Syed (2014)- Export of Manpower: Problems and Prospcts Monthly
Aikar Barta, September and October 2014.

2.

BBS (2010) Labour Force Survey 2010.

3.

BMET Suvenior- 2013

4.

Begum Afroza and et al (2014) Global Economic Changes and its Impact on Bangladesh
Economy.

5.

Choudhury Ashraf Uddin (2010) Dynamism and Sclerosis in Bangladesh labour market,
Bangladesh Journal of Political Economy- BEA.

6.

Farashuddin Mohammed (2010) Education, Employment and Equity-

Bangladesh

Journal of Political Economy- BEA.

7.

Gob- Ministry of Planning, Planning Commission (2011) 6 th five year plan.

8.

GOB Ministry of Finance (2012-2013) Bangladesh Economic Review.

9.

Huq ATM Zahurul (2011) Analysis of Foreign Remittances and its Effect on Bangladeshpursuant to global and local changes since 2000- Bangladesh Economic Journal. BETA.

10. Islam Md. Nazrul (2010) Impact of Irrigation on Share Tenancy and farm employment
in Bangladesh.
12

Mahabub Mohammed Ali (2007) Profile of Woman Labour Force in Garments IndustryA Supply and Demand side analyses.

13. Mukungu Kumer Pal and Et.al (2014) Domestic workers of Bangladesh, DBDM Journal
of Research.
14. Nobi Md. Golzare (2010) Microfinance for poverty alleviation in Bangladesh- An
analysis of outreach impact and sustain ability BEA.
15

Reza, Md. Selim and Et.al (2011) Impact of global financial crisis on the Economy of
Bangladesh, Bangladesh Journal of Political Economy- BEA.

16.

Siddiqui Moksud Belal (2012)- Migration and Remittance: Recent Trends and Future
Opportunities for Bangladesh, BEA seminar 2012.

17.

World Bank (2005c) World Development Report: A better investment climate for
everyone.

18. World Bank (2012) Bangladesh Development Report-Volume-2.

19. Yesmin Sabira (2012) Poverty, Discrimination and Employment-BEA.

26

Appendix

Table 01
Projected Pattern of Employment in the SFYP (Million)

Sector

FY10

FY11

FY12

FY13

FY14

FY15

Agriculture

23.2

23.0

22.8

22.6

22.3

22.0

Manufacturing

6.1

6.7

7.44

8.0

8.7

9.7

Construction

1.9

2.1

2.3

2.5

2.7

2.9

Services

21.2

22.3

23.2

24.6

25.8

27.0

Total employment

52.4

54.1

55.8

57.6

59.5

61.6

Employment Growth (%)

4.0

3.2

3.1

3.3

3.2

3.2

1.7

1.7

1.8

1.9

1.9

Additional Employment
Unemployment Rate (%)

4.0

4.1

4.0

4.0

4.0

3.7

Labour Force

54.5

56.2

58.0

59.9

61.8

63.7

Source: SFYP Projections

27

Tabel-02
3. Share of Employed Labour Force (Above 15 years) by Sector

Sector

199596

199900

200203

2005

2010

06
Agriculture, forestry and fishery

48.85

50.77

51.69

48.10

47.33

0.51

0.23

0.21

0.18

Manufacturing

10.06

9.49

9.71

10.97

12.34

Power, gas & water

0.29

0.26

0.23

0.21

0.18

Construction

2.87

2.82

3.39

3.16

4.79

Trade, hotel & restaurant

17.24

15.64

15.34

16.45

15.47

6.32

6.41

6.77

8.44

7.37

Finance, business & services

0.57

1.03

0.68

1.48

1.84

Commodities & personal services

13.79

13.08

5.64

5.49

6.26

6.32

5.49

4.24

100.00

100.00

100.00

100.00

100.00

Mining & quarrying

Transport, maintenance &

communication

Public administration and

defence
Total

Source: Labour Force Survey (LFS), 1995-96, 1999-00, 2002-03, 2005-06 & 2010 BBS.
Note: According to Labour Force Survey 2002-03, 2005-06 & 2010, population above 15
years of age has been counted as labour force, but in the previous surveys the criterion for
counting labour force was population above 10 years.

28

Table: 3
Sectoral share of GDP at constant price (percent)

1980-81

1990-91

2000-2001

2012-2013

Agriculture

33.07

29.23

25.03

19.42

Industry

17.31

24.04

26.20

31.19

Service

49.62

49.73

48.77

49.45

100

100

100

100

Total

Source: Bangladesh Economic Review-2013

29