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Half of educated workers lack suitable jobs in Bangladesh
Published : Saturday, 17 October, 2026 at 9:54 AM
Observer Online Report
Collected Photo
Nearly 29 per cent of highly educated young people in Bangladesh are unemployed, while about half of educated workers are employed in jobs that do not fully utilise their qualifications and skills, according to the International Monetary Fund (IMF), which has also lowered its economic growth forecast for the country.
The findings were published in the IMF’s Regional Economic Outlook: Asia and the Pacific on Thursday (October 15). The report is based on information available up to October 2.
The report’s labour market analysis found that unemployment among highly educated young people in Bangladesh stands at around 29 per cent. In several emerging Asian economies, the rate among young people with college or equivalent education has reached nearly 30 per cent. Recent graduates are particularly struggling to enter the job market.
Beyond unemployment, a mismatch between educational qualifications and job requirements remains a major challenge. About 50 per cent of highly educated workers in Bangladesh are employed in jobs that do not require their level of education, the report said.
The gap between jobseekers’ skills and employers’ requirements is one of the main reasons for unemployment, according to the IMF. Many applicants lack the skills employers seek, forcing them to wait longer for suitable jobs. Some eventually accept positions below their qualifications and skill levels.
The report also highlighted the prevalence of informal employment, including in agriculture, across many Asian economies. Such jobs often offer limited job security, formal contracts and opportunities for career advancement. As a result, unemployment rates alone do not fully reflect the weaknesses of the labour market.
Bangladesh’s working-age population is expected to grow further in the coming years. The IMF said this expanding young workforce could become a major economic asset if more people are engaged in productive employment.
The fund stressed the need to create more quality jobs in the manufacturing and services sectors. Without sufficient employment opportunities and an education system that equips young people with skills demanded by employers, frustration among the youth could increase and weigh on economic growth.
Artificial intelligence (AI) is adding to these labour market challenges. The IMF analysed 40 million online job advertisements across 19 Asian economies and found that demand for workers in occupations highly exposed to AI had fallen by around 10 per cent relative to other occupations. Meanwhile, demand for workers with AI-related skills has been rising.
According to the IMF, even economies currently less exposed to AI could face significant challenges in the future. Many new jobs in manufacturing and services may be reshaped by the technology, making it increasingly important for workers to adapt to new tools and acquire relevant skills.
Alongside its concerns over the labour market, the IMF has lowered its growth forecast for Bangladesh. The country’s gross domestic product (GDP) is projected to grow by 3.2 per cent in the 2026-27 fiscal year.
In contrast, the IMF has raised its overall growth forecast for the Asia-Pacific region. Economies benefiting from technological advances and AI-related developments have stronger growth prospects, while lower-income economies continue to face pressure from high energy costs and inflation, the report said.
-EM
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Editor : Iqbal Sobhan Chowdhury
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Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Advertisement: 41053012; 01793317829, 01550707291, E-mail: [email protected], [email protected] Online: email: [email protected] 41053014; 01550707297 Advertisement: 01550707296
