The Impact Of Covid-19 on Youth Unemployment in Bangladesh

Intisar Ahmed

ID-18141087

Introduction:

Youth Unemployment had been a serious problem in Bangladesh for many years.And when it is the time
of economic recession , the problem may turn from bad to worse.Bangladesh as well as the whole world
is facing Economic Crisis due to the impact of Covid-19.Due to this global pandemic,production is
hampered.So in this period of pandemic,the unemployment rate has reached its peak point.Research
shows that the youth unemployment rate of Bangladesh in 2020 may turn more than double (24.8) than
the previous year.So it’s an alarming condition for the future of the young generation as well the the
progress of Bangladesh.

There are some reasons of Youth Unemployment in Bangladesh.One of the most important ones is that
Bangladesh has severe population pressure comparing it with the size of its land.As a result it is quite
impossible for the employers to create employment opportunities for such a huge employee group.So the
educated youth finds it very difficult to get his or her desired jobs inspite of having potential
qualities.Besides of these,the education system of Bangladesh has many drawbacks. It lacks in giving
quality eduation based on practical life application.The country is still stuck with the old education
system having no Creativity.As a result the graduated youth are not enough skilled and qualified for jobs
offered by the employers.So this is also an important reason of youth unemployment in Bangladesh.

Now heading towards the point of the rationality of choosing the topic.Well the Young Generation are the
future leaders of the Country.They will have to lead and handle the nation’s economic policies,business,
politics,agricultural diversifications,foreign relations,defense and so on.They can lead and do their duties
only when they have a good career and a stable position in the society.If they are unable to find any
desired job based on their abilities,then how could they be reached that level where they can actually lead
tha nation?Moreover the young generation have that fresh blood,renewed energy and vigour and the
passion with enthusiasm to do something magnificent for their ownselves as well as for the
nation.Without youth employment,they can’t go to that level where they can actually do their duties,and
also they won’t get that incentives too.So that’s why this term paper is all about exposing the disastrous
condition for the young generation in Bangladesh due to this global pandemic.

For the research of my term paper,I do need some data regarding the unemployment rate of Bangladesh in
previous years.I may gather the data from various websites such as macrotrends,statista,ILO-ADB reports
etc.I will try to analyse and compare the unemployment rate of this pandemic year 2020 with the previous
years and it can be predicted that the unemployment rate is higher than the previous years.With this result
I will try to figure out how this rate will make an impact on the career of these educated youth and what
will be their current living standards.I will also try to find out their mental health on these pressurized
situation of unemployment.Lastly I want to express my opinion on the solution policies given by the
policy makers regarding youth unemployment.
Literature Review:

Youth Unemployment has naturally been high in Bangladesh for several years.The addition of the
Disastrous covid-19 pandemic has turn the situation from bad to worse.The main objective of this paper is
to inspect the situation of the youth group of Bangladesh who are fresh graduated recently either being
undergraduated or both under and post graduated.The paper mainly focuses on the impact the pandemic
has made on the job opportunities of these fresh graduated youths.Due to covid-19,many organizations
inucurred losses in production and revenue was not earned.As a result, circumstances compelled the
employers of different sectors to fire many of their employees of different ranks from their respective
jobs.A research which will be discussed later suggests that being able to deal with the situation amidst the
pandemic by coping with the situation will be a solution for these problem.In this case ,people should
consider the situation as “New Normal”.Besides people need to digitalise themselves with the updated
tehnologies so that they can do productive ativities and can even manage their livelihoods as well.In
short,the people specifically the fresh graduated youths should make them technologically skilled in order
to minimize their lackings in the job market.Alternative solutions are also appreciated in this regard.

The Author Md. Mahfuzur Rahman Khan and the co-author Sumaiya Binte Ekram Esha have added some
information while conducting their research.According to Wang(2020),the corona virus made its first hit
straight towards the city of Wuhan,China back in December,2019.The rest is history.Soon this disastrous
virus spread rapidly and damaged the mass of the rest of the world with the twinkling of an
eye.Europe,America,Asia all these continents were collapsed due to this virus.Seeing this severe
Condition,World Health Organisation(WHO) saw no other means except declaring this as a global
Pandemic back in March 2020.According to Satu(2020),Bangladesh found their first covid-19 patient in 8
March.Since then,the rate of being contaminated by the virus rose at an increasing rate.Lockdowns have
been declared in gradual process started from marh 2020,proceeded to April,mid April and finally to
whole May.This global pandemic damaged mostly the country’s economy as well as business.Poor
production quantity,adverse situation of revenue caused many employers being market out.As a result
many employees are fired, cut off from their jobs and are unemployed.Naturally the youth unemployment
rate in Bangladesh was higher.Moreover this severe employee redction and mass cut off from jobs makes
the lives of fresh graduated youths miserable.Besides they have no previous working experience and so
they are not that much skilled.So it’s very difficult for them to find a desired job and that’s threatening to
their career.

Well more to add in this regard,there are two renowned international organisations named International
Labor Organisation(ILO) and Asian Development Bank(ADB) have surveyed and studied about the
Youth Unemployment problem of Bangladesh. According to ILO-ADB(2020),there are youth who are
between 15-24 years old and in numbers,they are around 1.11 to 1.67 million who are extremely in risky
situation of losing jobs.The report also claims that the unemployment rate of Bangladesh may grow more
than double from 11.9% in 2019 to 24.8 % in 2020.The sectors that suffered at the highest peak during
the pandemic are the textile sectors,apparel sectors,agricultural sector followed by the retail trades and
construction sector.According to the report estimated by ILO-ADB(2020),the percentage of job losses in
textile and apparel sectors is 13.9%,12.1% in retail trades and 12.8% in the construction sector,and finally
the agricultural sector witnessed the highest percentage of job losses that is 22.9%.The report also pointed
out three important scenario for the youth group ---------

1.They face troubles through the disturbance in getting jobs by reduced working hours and redundancy.

2.They face disturbance in education and training or skill gathering,as they concentrate more on finishing
their studies.

3.They face troubles in the alteration from schools to work and move between jobs.

The author and the co-author have done a probing research.For their research,they used the Qualitative
data and secondary sources including news portals,news articles,blogs,books,internet,journals and so
on.The reseach was conducted between march and September.From the application of this
methodological study,the things that can be learnt----

1.How this pandemic affect the job opportunities of the fresh graduates

2.How this global pandemic lead the fresh graduates change their mind and generate shifting their career
paths

3.What is the response of different organisations amidst the hit of covid-19.

Table:1—The Population Group aged 20 0r older who are employed,by age,gender and group (in 000)

Age Group Bangladesh

Male Female Total
20-24 3775 2009 5783
25-29 5373 2892 8265

Table:2--- Youth Labor Force (in 000)

Category Bangladesh
 Male Female Total
Working Age Population 54080 54974 109054
Total Labor Force 43528 19976 63504
Employed 42182 18646 60828
Unemployed 1347 1330 2677
Not in Labor Force 10551 34998 45549

Well the author and the co-author stated that There spread uncertainty and insecurity in the job sectors in
Bangladesh amidst the Global pandemic.As a result the career paths of the graduated youths have been
changing.Moreover the graduated youths are being fond of Government jobs such as BCS,because there
remains more facilities,securities and certainties in Government jobs than in private jobs.So the pressure
in getting Government jobs are increasing as more applicants are in the competitions but with limited
seats for recruitment.So the unemployment seems more severe in that case.

Nowshin Islam,a student of Chittagong University has also stated the issue in a newspaper article about
the preference of graduated youth towards Government jobs like BCS because of its high-previledged
standard,facilities and security.But she also mentioned another important point called “Age Limit”.The
age limit for Govrnment Jobs in Bangladesh is 30 years.But due to the disastrous pandemic,many of them
has passed out the age limit of 30 years,but they were unable to sit for Government Exams due to
pandemic.So they are demanding to the authority to increase the age limit so that they could atleast
appear in the exam.The authority is however thinking about relaxing the age limit a little bit in order to
help the applicants.But the main challenge is how they are going to handle this issue.

In Bangladesh, it is estimated that more than 2 million fresh graduated youth enter the job market each
year.But this time,due to the global pandemic,the unemployment jam will be much more than the
previous years.Less job opportunities,fewer recruitments and higher competitions would make the
situation get severe day by day.from viewing the articles and research studies stated above,what the
authors tried to say is that something new and practical measures must be taken in order to control the
situation.Firstly,in order to eradicate the unemployment problem amidst the pandemic,the youth group
must gather some skills.They should become technologically skilled and updated,otherwise it will be so
hard for them to find their desired jobs only with their so called degrees.Because modern world is
advancing day by day.To cope with it and deal the situation in job market efficiently,the youth must have
the practical knowledge along with proper skills.Besides the people need to accept the new normal
condition of covid-19.If they embrace themselves with digitalization and conduct work from home,then
they may find it easier to sustain in the labor force.Moreover,the fresh graduated youths might change
their mentality of finding jobs.Rather they should try to nourish themselves and become skilled enough
by using the technology.With their talent,hardwork,practical knowledge,training and enthusiasm,they
should emerge as entrepreneurs and create new job opportunities for themselves as well as for others.To
make these things connect properly,the main thing that needs reformation is the so called old education
system.The education system needs to be established with more practical skill based and technology
based arrangements..Thus the situation may turn around towards positivity.
But in short,my opinion is that there is a little thing missing in the overall statements addressed by the
authors above.That is,it’s okay to make one digitalize and skilled through the updated technology,but it
should also be mentioned that,not everyone is well endowed in every aspects of technology or skill.So the
fresh graduated youth should first know themselves very well about their strengths and weaknesses.They
should know how to figure out which side they are good at.They should bestow themselves with that part
of skill training and technological individual development where they think they can shine.Otherwise,an
adverse situation may arise.With this little thinking,they can utilize their talent and passion towards right
path of digitalization and make a better career for themselves.

Methodology:

This part of the paper is basically all about how the research has been conducted or what methods require
or have been used to mechanize this research.Well this is basically a probing or fact finding
research,where Qualitative and Secondary data have been used to find the key outcomes of the conducted
research.The sources,more specifically the peripheral sources through which the study will be conducted
consist of blogs,journals,books,news,internet,portals and so on.Overall it would be a research following
descriptive statistics with the assistance of deductive approach.The research is conducted during March
to September.Some of the key objectives of this study are to find the outcomes or results on how the
response of different organisations to Covid-19 that impacted on the career opportunities or Job market of
the Fresh Graduates who were already struggling in this stage of life for employment before the
occurrence of Covid-19.The study also focuses on how this pandemic has manipulated the “Job
Characteristics” of the graduated youths and lead them to shift their desired career paths to something
different.

I also want to show a comparison between the unemployment rate due to Covid-19 and the
unemployment rate due to the recession of Bangladesh for the Global Financial Crisis back in 2007-2008,
and through this I want to show how disastrous this year’s pandemic is for the graduated youths.

The Careers of the Fresh Graduates are being threatened:

Study tells that around 1.7 million Fresh Graduated youths might have lose there jobs due to the
pandemic.This will create a great pressure as the fresh graduated youths have already been struggling
before the pandemic due to the shortage of recruitment in the job field.Moreover the existing below
average education quality has gone to dogs due to this unstable situation.So the youths have not got
enough room for practicing or developing their skills , which indirectly hamper their possibilities to grab
a job in the job market.Opportunities for Higher Studies has also decreased due to the pandemic.Thus it is
estimated that the youth unemployment may turn double this year than that of 2019.
Table:1— The Employed Population Group aged between 20-24 and 25-29,by Gender ( In 000 )

Age Group Bangladesh

Male Female Total
20-24 3775 2009 5783
25-29 5373 2892 8365

Table:2: The Labor Force of the Youth ( In 000 )

Category Bangladesh
Male Female Total
Working Age 54080 54974 109054
Population
Total Labor Force 43528 19976 63504
Employed 42182 18646 60828
Unemployed 1347 1330 2677
Not in Labor Force 10551 34998 45549

There are two table shown in the paper.Both of these are taken from the source of Bangladesh Bureau of
Statistics (BBS) 2016-17.Table 1 stands for the employed population for both male female by gender with
age groups of 20-24 and 25-29.Table 2 shows the Youth Labor Force in different categories. In
conformity with the Labor Force Survey (LFS) 2016-17 by BBS,the Amount of the total labor force was
around 60828000, among them 5783000 were the population of age group 20-24, while 8265000 were the
age group of 25-29.This surveyed amount clearly shows that the percentage or the amount of the
population of the youth group aged between 20-24 is quite low comparing to the other groups.These yoth
group are the ones having completed under graduation or both the under graduation and post
graduation.So from a very long time,the fresh graduated youths are facing this unemployment
problem.This survey had been conducted during the period of 2016-17.That time there was no
recessions,pandemic or lockdown.So it can be clearly estimated that the impact and the situation will be
even more disastrous during this pandemic and the fresh graduates will face serious problems regarding
their job finding.
Reactions and responses of different organisations towards Covid-19 regarding jobs :

There are many renowned and big Companies in Bangladesh that faced severe troubles amidst the Covid-
19.As a result they had to fire many employees of them.For instance, one of the most famous
Multinational Companies named LafargeHolim Bangladesh Limited had to divulged a lay-off from the
ongoing office work.Grameenphone Bangladesh, a famous telecom brand had to terminate their 182
permanent employees due to the excess cost and also at the consequence of negative revenue.The
Assosiation of Banks was compelled to reduce the salaries of their employees up to 15%.The employees
of these banks were either terminated or were forced to resign due to the Global Pandemic.The
performance bonus ,increments and promotions were suspended and was suggested to resume them when
the situation gets normal.Some Private Universities laid-off their teachers and had not payed the salaries
of the teachers properly.

So,with this observation it’s very clear that the job market has become very narrow and dangerously
competitive.The recruitment amounts are being declined due to the pandemic.We saw that the most
experienced permanent employees are being terminated,laid-off from their jobs due to excess cost,poor
production and less revenue.So it has become a nightmare for the fresh graduated inexperienced,
comparatively less skilled youths to get even a desired job.So it has turned out that,without a little bit of
luck,without greater and extraordinary skills,and without practical education,it’s impossible for the fresh
graduateds to have a job.Thus this pandemic is increasing burdens and barriers of the fresh graduated
youths in their future careers.Due to this Global Pandemic,one of the main sufferers were the
entrepreneurs and small medium businessmen and startup doers.They were unable to supply their goods
and earn profits due to lockdown and stopped their business.

The Alteration in Job Characteristics and Career Shifting :

The job nature is being changed due to Covid-19.Many Offices and companies have started “Work from
Home” system.The employess don’t have to come to offices,rather they will execute their
works,meetings,presentations and other administrative works from home.So for that,they need to be
efficient in Technological fields.Besides of these many recruitment processes of of different organisations
are being proceeded through online.So there are changes in job requirement too.That is the applicants
must have efficiencies in technological aspects.So the fresh graduates need to develop their technological
qualities in order to cope up with the job criteria.

As the job finding and getting has become tremendously tough for the graduates, many of them are
rethinking and altering their job target and career paths.Many fresh graduates are heading towards
business and entrepreneurship,but they are struggling there because they have no previous
experience,skill or knowledge of business.The adult persons who have been terminated from their
respective jobs may shift easily to these business works as they are experienced enough to deal with these
situations.But it’s difficult for the young graduates to shift instantly to these entrepreneurship activities.

Another tendency is being witnessed in the young graduates.Many of them are heading towards
Government jobs such as Bangladesh Civil Service (BCS).Because government jobs have enough job
security and certainty than other sectors.Most of the laid-off employees are from private job sectors.So it
gives a push and incentive to the newly fresh graduated youths to try and grab a Government job for their
better career and job security.According to Bangladesh Public Service Commission (BPSC),the amount
of applicants for 41st BCS is 475000,of that only 2135 posts are available for recruitment.This has broken
all the previous records.So it will be a huge jam in the field of Government jobs as well.

Now I would like to show the youth unemployment rate of previous years in Bangladesh.

The Youth Unemployment Rate

in Bangladesh
Year Unemployment Rate in % Annual Change ( In % )
(Age 20-24)
2019 11.87 -.28
2018 12.15 -.15
2017 12.30 1.18
2016 11.12 .33
2015 10.80 .34
2014 10.46 .32
2013 10.13 1.43
2012 8.71 1.25
2011 7.46 1.06
2010 6.40 -2.67
2009 9.07 .92
2008 8.15 .47
2007 7.68 .35
2006 7.33 -1.54
2005 8.86 1.10

In the above table,there is shown the youth unemployment rate of Bangladesh since 2005.In 2019,the
unemployment rate of the youth in Bangladesh was around 11.87% which was comparatively less than
that of the previous year,2018.The annual change was -0.28,that means unemployment rate was
decreased a little bit,which was a good sign.But The ILO-ADB report estimates that , due to the Global
Pandemic,the youth unemployment rate of Bangladesh will turn more than double of 2019 unemployment
rate,and it may turn to 24.8% in 2020.That might happen due to the economic downturn or recession
caused by this global pandemic.The last time a global economic recession was occurred that took place in
2007,which is called the global financial crisis.Due to that recession period,the unemployment rate of
Bangladesh rose higher from 7.68% in 2007 to 8.15% in 2008.The rate of increase was just .47%.But due
to the covid-19 pandemic in 2020,the unemployment rate of the youth rose more than double from
11.87% to 24.8%.So it is indeed a clear indication that,the job finding opportunities and career building
procedure for the fresh graduated youths have become extremely tough.
Analysis of the Result :

By showing the above data on unemployment rate,we can feel the consequences of how disastrous the job
condition has turned out.If proper modification isn’t brought immediately,such as changing the theoretical
old education method,increasing more practical skill-based learning,changing the job finding goal of the
fresh graduated youth,motivating them to become entrepreneurs or doing something different for earning
his or her livelihood so that he or she may not have to be dependent on other organisations for getting
jobs,shifting the idea of the youths of grabing Government jobs such as B.C.S and so on,the situation
would become terrible.

Conclusion:

Finally,we can wrap up the overall thing by saying that,Covid-19 has already made a big damage into the
country’s job sector especially for the fresh graduated youths who has already been suffering from before
the pandemic.So to minimize the problem to some extent,proper development in technological
skills,digitalization,working from home as an alternative of going to office could be a good back up of
terminating the on-job young worker on different organisations instead.Moreover,creative learning and
skill-based freelancing job opportunities must be enhanced so that the talented youths can earn money
from home.But the main condition is,they need to be more efficient and creative-skilled on that sector to
be appointed.The fascination towards Government jobs must be minimized in order to reduce
pressure.The youths need to explore their potential and build it so that they can find new areas of job for
themselves.By doing or maintaining these procedures,the ongoing severe unemployment problem of the
educated youths may be reduced to some extent.

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