Unemployment problem & Solution in Bangladesh.

1. Building Economics
Final Submission of………
1. Unemployment problem & Solution in Bangladesh.
Submitted by…….
Name: Akramul hoque
Roll: 2013200600018.
Batch: 10th
.
Semester: Summer, 2016.
Department of Architecture, Southeast University.
Dhaka-1215.

2. History of unemployment in Bangladesh
Historically for a long time British administration was the main cause of this problem. After ending
Mughol regime when British came in Sub continent (India, Pakistan, Bangladesh) they started to do
business, they exploited the sub-continent. They did not establish any Industry which is helpful to
remove the unemployment problem. Though some Industry was made but all of them were placed
in Indian Territory. So Bangladesh region was neglected from the British period. After ending British rule
in 1947 Pakistan adopted the same rule they established all kinds of Industry in West Pakistan not
in East Pakistan. As a result of Pakistani monopoly rule we saw the freedom fighting war in 1971. After
nine months continuous war it is divided and named East Pakistan as a Bangladesh. After
1971 Bangladesh has been facing political crisis badly. As a result no government can take long term
massive step to remove the unemployment problem. Within 37 years Bangladesh has experience about
eight new governments and two assassination incident at the top level country leader. So now political
crisis is one of the major causes of unemployment problem in Bangladesh. Among others two major
parties BNP and Aowamileague are busy to gain only political power. None of these parties are trying to
do anything to solve the country’s major problem “UNEMPLOYEMENT PROBLEM” Recent attitude and
activity of political parties are very hateful to the common people. By election if a party goes to power
then another party cannot accept that, they do not go to parliament they do not express constructive
opinion in the parliament which is helpful for common people. But they should not do it. May be there is
some discrimination of the election result but there are overall acceptation of the common people.
BANGLADESH: Unemployment, food prices spur growing hunger
Bangladesh will face greater food shortages in the coming years
Rising unemployment and food prices and a sluggish economy are taking their toll on Bangladesh, where
a growing number of people are struggling to survive.
“If I do not get work tomorrow or become ill, all my family members will go hungry,” said Nur Islam, a
45-year-old Dhaka resident who hauls a rickshaw around town for US$3 a day to feed his wife and three
children. About 40 percent of Bangladesh’s 160 million people live on less than $1 a day and are food
insecure, according to government figures, and a rapidly expanding population - combined with rising
unemployment, inflation, the economic slowdown and unpredictable weather-related disasters - is
leading the country deeper into a food crisis.
“In recent years, devastating cyclones and floods, the dramatic increase in food prices in 2008 and the
global recession have all impacted economic growth in Bangladesh, which in turn has led to a
deterioration of food security and the nutritional situation in the country,”
Emamul Haque,
Spokesperson for the World Food Programme (WFP) in Bangladesh.
According to WFP, the number of people who consume less than the minimum daily recommended
amount of food rose from 47 million in 1990, to 56 million in 2005. Following floods and Cyclone Sidr in
2007, that figure peaked in 2008 at 65 million.
“The lack of economic growth is the main reason for food insecurity in Bangladesh. Sometimes there is
availability of food, but the poor people do not have the purchasing power,”
Quazi Shahabuddin,
Researcher and former director-general of the
Bangladesh Institute of Development Studies.

3. Types of Unemployment
1. Cyclical or Keynesian unemployment
The IS-LM Model is used to analyze the effect of demand shocks on the economy.
Cyclical or Keynesian unemployment, also known as deficient-demand unemployment, occurs when
there is not enough aggregate demand in the economy to provide jobs for everyone who wants to work.
Demand for most goods and services falls, less production is needed and consequently fewer workers
are needed, wages are sticky and do not fall to meet the equilibrium level, and mass unemployment
results.[48] Its name is derived from the frequent shifts in the business cycle although unemployment
can also be persistent as occurred during the Great Depression of the 1930s. With cyclical
unemployment, the number of unemployed workers exceeds the number of job vacancies, so that even
if full employment were attained and all open jobs were filled, some workers would still remain
unemployed.
2. Marxist theory of unemployment
It is in the very nature of the capitalist mode of production to overwork some workers while keeping the
rest as a reserve army of unemployed paupers.
According to Karl Marx, unemployment is inherent within the unstable capitalist system and periodic
crises of mass unemployment are to be expected. The function of the proletariat within the capitalist
system is to provide a "reserve army of labor" that creates downward pressure on wages. This is
accomplished by dividing the proletariat into surplus labor (employees) and under-employment
(unemployed). This reserve army of labor fight among themselves for scarce jobs at lower and lower
wages. At first glance, unemployment seems inefficient since unemployed workers do not increase
profits.
3 Involuntary unemployment
This conflict between the neoclassical and Keynesian theories has had strong influence on government
policy. The tendency for government is to curtail and eliminate unemployment through increases in
benefits and government jobs, and to encourage the job-seeker to both consider new careers and
relocation to another city.
4. Full employment
Some demand theory economists see the inflation barrier as corresponding to the natural rate of
unemployment. The "natural" rate of unemployment is defined as the rate of unemployment that exists
when the labor market is in equilibrium and there is pressure for neither rising inflation rates nor falling
inflation rates. An alternative technical term for this rate is the NAIRU or the Non-Accelerating Inflation
Rate of Unemployment.
5. Structural unemployment
Structural unemployment occurs when a labour market is unable to provide jobs for everyone who
wants one because there is a mismatch between the skills of the unemployed workers and the skills
needed for the available jobs.
Structural unemployment is hard to separate empirically from frictional unemployment, except to say
that it lasts longer. As with frictional unemployment, simple demand-side stimulus will not work to
easily abolish this type of unemployment.
6. Frictional unemployment
Frictional unemployment is the time period between jobs when a worker is searching for, or
transitioning from one job to another. It is sometimes called search unemployment and can be voluntary
based on the circumstances of the unemployed individual. Frictional unemployment is always present in
an economy, so the level of involuntary unemployment is properly the unemployment rate minus the
rate of frictional unemployment, which means that increases or decreases in unemployment are
normally under-represented in the simple statistics.

4. 7. Hidden unemployment
Hidden, or covered, unemployment is the unemployment of potential workers that is not reflected in
official unemployment statistics, due to the way the statistics are collected. In many countries only
those who have no work but are actively looking for work (and/or qualifying for social security benefits)
are counted as unemployed. Those who have given up looking for work (and sometimes those who are
on Government "retraining" programs) are not officially counted among the unemployed, even though
they are not employed.
8. Long-term unemployment
This is normally defined, for instance in European Union statistics, as unemployment lasting for longer
than one year. It is an important indicator of social exclusion. The Bureau of Labor Statistics reports this
as U4 and U5.
Unemployment is turning into a very serious issue
According to a study of the International Labor Organization (ILO), the rate of growth of unemployment
in Bangladesh was 1.9 per cent in the decade of the nineties. But the growth in unemployment currently
is 3.7 per cent. The ILO figures also show Bangladesh in the twelfth position among the top twenty
countries in the world where unemployment is rising. The number of the unemployed
in Bangladesh now is estimated at 30 million. The way the rate of unemployment is increasing, it is
feared that at this rate unemployment would soar to some 60 million by 2015. According to another
estimate, every year some 2.7 million young persons are becoming eligible for jobs whereas only about
0.7 million of them are getting employment. The number of the 'disguised unemployed' an economic
term meaning underemployed people or employed to a degree less than their potential, is some 32
percent. The huge number of the unemployed and the underemployed in the workforce gives an idea of
the number of the parasitic ones in the population. Employed persons not only consume from the
economy but they also contribute to the economy through production activities and discharge of various
services. The unemployed people in contrast only live off the economy or their families and society.
They are an absolute burden on the state. Not only being liabilities in the economic sense, politically and
socially they are considered to be a source of tension and turmoil. The linkage between unemployment
and crimes is obvious. Therefore, all governments in Bangladesh will need to address the unemployment
issue very seriously indeed before it turns worse. The recent floods and the devastating Sidr storm plus
the restructuring activities leading to retrenchment of workers from state operated enterprises, have
added to the unemployment problem. Government will have to start up urgently different work
programmes like road building and repairs, reconstruction of infrastructures, etc., especially in the rural
areas and continue them for some time, to mitigate the worst woes of the jobless ones at the grass
roots level . But for the medium and longer terms, the present interim government which is doing
pathbreaking works in vital areas, should also adopt a plan of action to tackle unemployment. It can
start such a plan and leave gradual implementation of it to successor governments. Insufficient
investments have been frustrating the creation of new employment opportunities in Bangladesh.
Government here needs to identify each of the factors that can contribute to a better investment
climate. The same would include improvement of law and order, much lowering of the interest rate on
borrowings, addition to and up gradation of infrastructures to be supportive of enterprising, fiscal
policies that create level playing fields for local entrepreneurs in relation to foreign competitors, fiscal
incentives such as tax reduction and tax exemption, etc. Government will need to act imaginatively and
effectively in relation to each of the above factors and more to improve the investment climate that in

5. turn would accelerate economic activities and make the desired impact on the unemployment situation.
However, there is also a need to be clear about the policies to be pursued to create employment. New
enterprises will absorb the unemployed. But capital intensive enterprises will employ a smaller number
than labour intensive ones which will understandably employ a greater number. Thus, enterprise with
labour intensive character should be identified and encouraged. Government can make a big
contribution towards reducing unemployment by also building and operating a large number of training
institutions to train the jobless ones in different vocations for them to be fit enough to take up
employment in the country, to go abroad for doing jobs or to engage in self-employment. Government's
ample spending for skill development is all the more necessary because private sectors may prefer not
to invest in this area out of a consideration of low profits. The high costs of skill training under the
private sector is also likely to exclude most seekers of such training on the ground of their inability to
pay for the training. Thus, government's role as a skill trainer is very important. But government can
expect to recover the investments it will make in this area by receiving regular payments in installments
from people who would get jobs after such training.
Unemployment rateRate
5.1% (2009 est.)
4% (2008 est.)
note: about 40% of the population is underemployed; many participants in the labor force work only a
few hours a week, at low wages
Year Unemployment rate Rank
Percent
Change
Date of Information
2003 40.00 % 12 2002 est.
2004 40.00 % 14 0.00 % 2002 est.
2005 40.00 % 178 0.00 % 2004 est.
2006 2.50 % 22 -93.75 % 2005 est.
2007 2.50 % 23 0.00 % 2006 est.
2008 2.50 % 27 0.00 % 2007 est.
2009 2.50 % 27 0.00 % 2008 est.
2010 5.10 % 46 104.00 % 2009 est.
Definition: This entry contains the percent of the labor force that is without jobs. Substantial
underemployment might be noted.
Methodology
The problem of unemployment is crucial as far as the world economic growth is concerned. There are
different types of unemployment like structural, cyclical, natural and frictional. This categorization of
unemployment is based on the various factors that result in unemployment.
Qualitative approaches were used to conduct the study. At first thirty drugs business and spots were
identified in Comilla town. During the spot visit, around 20 young addicted were identified. Of them
three cases were studied. Two focus group discussions were also made with the young addicted
persons, one in the selling spot and another in a neutral place. A sample size of thirty-five addicted
persons were given a structured questionnaire to quantify some aspect of drugs in Comilla. The
questionnaire consisted of thirty-eight questions related to drugs, addiction and the demographic
profile. Most of the questions were open-ended. The fieldwork continued for 20 days.

6. Findings
Bangladesh has been suffering from a sort of economic growth stagnation with its GDP growing
between 5.0 and 6.8 per cent for the last several years. At this moment, we need to adopt an
expansionary economic policy so that we can increase production, productivity and consequent
employment generation through higher investment. Inflation has to be reduced by increasing
productivity and supply and by decreasing average production cost. As a result, the overall national
production, per capital income, economic growth and employment opportunities will increase.
Conclusion
Unemployment is a great curse to a nation. We cannot expect the development of our country leaving
its millions of the people unemployment to survive as a boastful nation. We should make all out efforts
to get rid of this curse. Analysis of this study tries to indicate this phenomenon by focusing of the
skills/qualification (apart from degree, certificate, and diploma) that are considered as important for
graduates' employ ability by the corporate bodies of Bangladesh.
Source
. www.mobilefornews.blogspot.com
. Unemployment rate rank chart
 Unemployment rate - comparative map
 www.1888articles.com/unemployment-problem-in-bangladesh-0107822.html
 www.oppapers.com/.../unemployment-problem-in-bangladesh-page1.html -
 matrixsearches.com/article.php?id=153902&act=p
 www.scribd.com/doc/17481892/Unemployment-1
 www.thefinancialexpress-bd.com/search_index.php?.]
 Problem Facts and statistics about the Unemployment rate
of Bangladesh. msinbangladesh.blogspot.com/.../unemployment-problem-in-bangladesh.
 www.indexmundi.com › Bangladesh › Economy –
 classifieds1000.com/Bangladesh/Unemployment/unemployment_problem?...
 www.cyberessays.com/.../unemployment-problem-in-Bangladesh/page180.htms
 www.unescap.org/esid/meetings/migration/Bangladesh.pdf
 www.blogtopsites.com/tag/unemployment+problem+in+bangladesh
 https://www.cia.gov/library/.../the.../bg.html