Youth Unemployment & Job Crisis: A Situation Analysis and Way Forward

Youth unemployment in Bangladesh constitutes a persistent structural challenge that undermines inclusive growth and the effective utilization of the country’s demographic dividend. Although educational attainment has increased over the past decade, labour market absorption has not kept pace, resulting in rising unemployment, underemployment, and high NEET rates among young people. Existing literature attributes these outcomes to skills mismatch, limited diversification of the economy, weak coordination across employment-related institutions, and significant gender-based barriers. This paper conducts a situation analysis grounded in recent empirical studies, labour force data, and policy reports to assess the underlying determinants of the youth job crisis. It further examines the implications of governance constraints, labour market informality, and post-pandemic disruptions. Based on the evidence reviewed, the paper outlines strategic policy directions, emphasizing strengthened TVET systems, improved labour market information frameworks, targeted gender-responsive interventions, and enhanced multi-agency coordination. The findings underscore the need for comprehensive and sustained reform to ensure productive youth engagement in Bangladesh’s labour market.