Dhaka:Around 44 percent of university graduates in Bangladesh are employed in the informal sector, highlighting the country's struggle to translate higher education into formal employment opportunities, according to a World Bank report released on Tuesday.
According to United News of Bangladesh, the report, titled "Demographic Change in South Asia From Tailwinds to Headwinds for Development," emphasizes that Bangladesh has about two decades to fully harness its demographic dividend before the working-age population peaks in 2045. However, urgent reforms are necessary to transform this opportunity into better jobs, higher productivity, and sustainable economic growth.
The report outlines several structural weaknesses in Bangladesh, including inadequate formal job creation, low female labor-force participation, and persistent skills gaps. It notes that approximately 84 percent of Bangladesh's workforce, or about 58 million people, are employed in the informal sector. This situation is compounded by the slow generation of jobs by formal businesses and recent workforce reductions among small firms.
Jean Pesme, World Bank Division Director for Bangladesh and Bhutan, stressed the importance of helping firms create better jobs, equipping young people with market-relevant skills, and removing barriers that prevent women from participating in the workforce. He also highlighted the need for stronger healthcare and old-age income security to prepare for an aging population.
The report further elaborates on the regional context, noting that South Asia currently has a working-age population of 1.17 billion, presenting an opportunity to accelerate economic growth. However, this window is closing as the region's working-age population is expected to peak and begin declining in less than a decade. By 2049, South Asia is projected to become an aged region with 14 percent of its population aged 65 or above, with Bangladesh expected to reach this stage by 2051.
The World Bank recommends creating more productive jobs, expanding access to finance for micro, small, and medium enterprises, simplifying regulations, and improving healthcare, education, and skills development. Removing barriers to women's employment is also deemed essential for sustaining the youth dividend, alongside strengthening healthcare, long-term care, and pension systems to support aging populations.