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MD.OMAR FARUK HASIB [132011013]]Kazi Arafath [32011163]

UNEMPLOYMENT IN BANGLADESH

What is the unemployment & unemployment rate??

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Definition

According to International Labor Organization (ILO), “Unemployment occurs when people are without jobs and they have actively looked for work within the past four weeks”.

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Unemployment rate

The percentage of the total labor force that is unemployed but actively seeking

employment and willing to work is treated as unemployment rate. A person who simply expresses Interest in having a job is classified as unemployed.

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Types of Unemployment Rate

Structural Unemployment: Structural unemployment is an unemployment that comes from there being an absence of demand for the workers that are available."

Frictional Unemployment: "Frictional unemployment is unemployment that comes from people moving between jobs, careers, and locations."

Cyclical Unemployment: "Cyclical unemployment occurs when the unemployment rate moves in the opposite direction as the GDP growth rate. So when GDP growth is small (or negative) unemployment is high."

Seasonal Unemployment: Seasonal unemployment is unemployment due to changes in the season - such as a lack of demand for department store Santa Clauses in January. Seasonal unemployment is a form of structural unemployment, as the structure of the economy changes from month to month.

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Compare with Other Country

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Executive Summary & Objective

Bangladesh is trying to develop unemployment sector is one of the most promising

one in this process. It will face competition there but it has some distinctive qualities

which will help it to establish itself as a prime sector. We tried to figure out the

Unemployment in Bangladesh and then the structure of the problem which would help

us to develop our unemployment according to our culture.

According to the study, Unemployment rate in BD has now risen to some 11 per cent

from what was 8.0 per cent in 2002 and 2.4 per cent in 1990. This is only official data.

But unofficially reliable estimates of unemployment are higher. So, Through

meaningful operationalization of the strategy the government must pursue practical

policies to give a stimulus to much greater investments in the economy so that more

jobs can be created on a regular basis. The domestic economy may not expand, in

the short run, sufficiently and proportionately to provide jobs to the rising number of

unemployed people. It, thus, serves the country's purpose if efforts are made at the

same time to send people abroad with jobs.7/13/2014 8

The Nature

Bangladesh, like other developing countries, suffers from large-scale disguised

unemployment in the sense that, even with unchanged techniques of agriculture a

large part of the population engaged in agriculture could be removed without

reducing agricultural output. Unemployment among the educated youths is one of

the major problems in Bangladesh. Beside In Bangladesh salaried/wage

employment in the formal sectors is not big enough to take care of the huge number

of unemployed. To be engaged in Emphasis had been given on training and credit

support to women micro entrepreneurs in cottage industries and other traditional

and non-traditional sectors including skill development for service industries and

other non-farm activities. The private sector and NGOs are also playing a vital role

to this end Effect of unemployment problem.

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Effect on Unemployment

Effect of Unemployment

Economic Effect

Social Effect

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Effect of unemployment on the economy

Wasted production

Unemployment financial costs

Spending power

Reduced spending power of the employed

Recession

Effect of unemployment on the society

Standard of living

Tension over taxes rise

Insecurity amongst employees

Crime and violence

Employment gaps

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Causes behind unemployment

Minimum wages

Labor union

Efficiency wages

Job search

Economic growth

Inflation

Regulations and taxes

Employer incentives

Global recession

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List of unemployment in Bangladesh are given below:

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35.2 35.2 35

40 40 40

2.5 2.5 2.5 2.5

5.1 4.8 5 4.5

0

5

10

15

20

25

30

35

40

45

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Unemployment rate (%)

Last Situation of Bangladesh

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Possible Solution to Unemployment:

National Office of Employment to develop long term strategies and oversight.

Identify growing and potential industries and the skills they will need in future staff.

Design a plan which allows for the rapid retargeting of training courses as

vocational schools are traditionally 5 to 15 years behind current needs.

Steps should be taken to set up co-operative farming, cottage industries and to

open new system of public work to create job for the unemployed people.

Provide incentives for employers to hire more part-time workers

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Conclusion & Recommendation:

High rate of unemployment, particularly of the educated youths, poses serious

socio-economic problems.

A jobless educated youth, particularly a male, becomes a burden for his family. He

gets little respect in his family or in the society. This forces him to resort to criminal

activities such as hijacking, working as a trafficker of dangerous drugs, working as a

muscleman of a corrupt politician, or joining a group of militants.

In view of what has been stated above, it is high time to ascertain the correct rate

of unemployment in the country, and it must be free from political bias in the greater

national interest.

IN the prime minister's question-answer session on February 17, Prime Minister

Sheikh Hasina disclosed in the House her government's plan to bring down

unemployment rate to 15 percent from the existing 40 percent by the year 2021.7/13/2014 17

THANK YOU!!

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