Unemployment problem


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Unemployment problem

  1. 1. Unemployment Problem in BangladeshBangladesh is a small country with a large number of populations. The peopleof our country often suffer from many problems. Unemployment can bedefined as a major problem in Bangladesh. It is the situation in which onedoes not have any opportunity to work and earn. An unemployed personcannot earn his living. He has to depend on others. He is thought as a burdento the family or the society. So, it is regarded as a great problem. We can tell itmother of many social problems. For only unemployment problem, economicgrowth of our country is hampered much. Many social problems as like aspoverty, dowry system, urban overpopulation, social crime, GDP ratedecrease, lower standard of living, burden to the nation etc. Unemploymentproblem has become a great concern all over the world. But nowhere in theworld is this problem as acute as in Bangladesh. Unemployment is a greatconcern in Bangladesh. Every year hundreds of thousands student are comingout from college and university. Though it is one of the major responsibilitiesof the Government to provide job to those young generation but theGovernment is failed to meet the job demand among the large population.Only a tiny fraction of total jobless is managed by different government officesand private organization but a majority remain unemployed.Cause of Unemployment in our country: Bangladesh, suffers from large-scale underemployment; especially in agriculture, a large part of thepopulation could be removed without reducing agricultural output. Beyondagriculture, disguised unemployment also exists in industries, officesand organizations, particularly in the public sector. Unemployment among theeducated youths is rather high in Bangladesh. The unemployment rate for thepopulation having secondary education and above is significantly higher thanthose with a lower level of education. The unemployment rate for educatedwomen is higher compared to the male population. In Bangladesh salariedemployment in the formal sectors is not big enough to take care of the hugenumber of unemployed. Employment promotion, especially, creation of self-employment opportunities, continues to be the most important function of the
  2. 2. Unemployment Problem in BangladeshBureau of Manpower Employment and Training. The Fifth Five-Year Plan(1997-2002) had set a target of creating additional employment of 6.35million persons. Of this, 1,60,000 persons are expected to be engaged in self-employment. Emphasis had been given on training and credit support towomen entrepreneurs in micro cottage industries and other traditional andnon-traditional sectors including skill development for service industries andother non-farm activities. Bangladesh has a rather high rate of Inflation rate10.2% (Mayof 2011) also provides a vital role in Unemployment. Minimumwage law & Labor unions working for efficiency wages also a reason forunemployment as well-paid employees rarely leaves their job to create chancefor the new workers. According to a study of the International LaborOrganization (ILO),The rate of growth of unemployment in Bangladesh was1.9 per cent in the nineties. But the growth in unemployment currently is 3.7per cent. The ILO figures also show Bangladesh in the twelfth position amongthe top twenty countries in the world where unemployment is rising. Thenumber of the unemployed in Bangladesh now is estimated at 30 million.The way the rate of unemployment is increasing, it is it is feared that atthis rate unemployment would soar to some 60 million by 2015. According to
  3. 3. Unemployment Problem in Bangladeshanother estimate, every year some 2.7 million young persons are becomingeligible for jobs where as only about 0.7 million of them are gettingemployment. The number of the disguised unemployed an economic farmmeaning underemployed people or employed to a degree less than theirpotential, issome 32 per cent. The total civilian labor force of the country in1996-97 was estimated at 42.97million, of which 34.7 million were male and8.27 million were female. These figures, however excluded the female laborforce engaged in activities like poultry, livestock, paddy husking, preservationof food etc. conducted in rural households and considered as domestic workrather than economic.Area wise Cause: There are several area wise unemployment tendencies inBangladesh. Northern districts of Rajshahi & Rangpur divisions face massivedrought due to the rivers drying up, many of the farmers & agriculturalworkers have faced unemployment & eventually had to move to otherprofessions. During the 70s, the Sylhet districts had major employmentproblem which lead many of them to immigrate to UK & other countries. Inthe hilly districts of the Chittagong when the “Joom” harvesting was outlawed,many of the traditional aboriginal farmers had to face temporaryunemployment. After non-CNG vehicles were removed from Dhaka, manydrivers moved to other districts to avoid unemployment.Sector wise unemployment:Agriculture 45%Industry 30%Services 25%
  4. 4. Unemployment Problem in BangladeshAgriculture: Most Bangladeshis earn their living from agriculture. Rice, jute,maize and vegetables are the primary crops assuming greater importancealong with wheat, sugarcane, potatoes, tobacco, pulses, oilseeds, spices, fruit,beef, milk, and poultry. Due to the expansion of irrigation networks, somewheat producers have switched to cultivation of maize which is used mostlyas poultry feed. Tea is grown in the northeast. Because of Bangladeshs fertilesoil and normally ample water supply, rice can be grown and harvested threetimes a year in many areas. Due to a number of factors, Bangladeshs labor-intensive agriculture has achieved steady increases in food grain productiondespite often unfavorable weather conditions. Better flood controland irrigation, more efficient use of fertilizers, and establishment of betterdistribution and rural credit networks. Population pressure continues to placea severe burden on productive capacity, creating a food deficit along with highrate of unemployment. Foreign assistance and commercial imports fill the gap,but seasonal hunger("Monga") remains a constant problem.Underemployment remains a serious problem, and a growing concern forBangladeshs agricultural sector will be decided by its ability to absorbadditional manpower. Too much manpower is underused by disguisedunemployment, particularly with the increasing numbers of landless peasantswho are about half the labor force. As the labour needed only seasonally,about 40% of the agricultural population is underemployed; manyparticipants in the labor force work only a few hours a week, at low wages.Due to farmer’s vulnerability to risks, they face numerous potentiallimitations to enhance agriculture production and their livelihoods.Uneducated farmers avoid investing in new agricultural technologies andactivities despite their potential to increase income. On the otherhand technological advancement reduces manpower, causingmore unemployment.Manufacturing: Many new jobs have been created by private ready-madegarment industry, which grew at double-digit rates through most ofthe 1990s. By the late 90s, about 1.5 million people, mostly women, were
  5. 5. Unemployment Problem in Bangladeshemployed in the garments sector as well as Leather products speciallyFootwear (Shoe manufacturing). During 2001-2002, export earnings fromready-made garments reached $3,125million, representing 52% ofBangladeshs total exports. Bangladesh overtook India in apparel exports in2009, at 2.66 billion US dollar, ahead of Indias 2.27 billion US dollar. Bengalwas known for its fine Maslin and silk fabric, still produces Jamdani &Benarasi which is a large industry. Other industries which have shownvery strong growth include the chemical industry, steel industry, miningindustry and the paper and pulp industry. Sugar, cotton textiles, jute madeproducts, Shrimp& frozen fish, seafood, garments, tea processing,newsprint paper, cement, chemical fertilizer, light engineering, etc. providesjob to many. The shutting down of Adamjee Jute Mills in 2002 made25000workers lose their job. As the growth of industry is not significantly high inthe country [6.4%(2009 est.)], the country suffers severely of unemployment.Wages in Bangladeshs textile industry were the lowest in the world as of2010. The country was considered the most formidable rival to China wherewages were rapidly rising and currency was appreciating. Corruption, poorinfra structure, insufficient power supplies, and slow implementation ofeconomic reforms rarely encourage foreign investors, whicheventually minimizes more job opportunities & promotes unemployment.Service : In the Service sector is seriously slow to meet the rising numbers ofnew work force that enters the job market each year. For a massive 73.87million labor force new job opportunities opening is too low. Bangladeshextensively exports of labours to Saudi Arabia, Kuwait, Libya, UAE,Oman,Qatar, and Malaysia; workers remittances estimated at $10.9 billion in2009-10 provide a strong helping hand to the economy of the country. Inrecent years as the rate of literacy has increased, there is a rise in the numberof educated work force available. Due to the lower number of available jobsthey are not fully used. Many of these doctors, engineers, etc. are immigratingto countries with better career opportunity. These educated assetsare underused either by inappropriate job or being jobless.
  6. 6. Unemployment Problem in BangladeshAccording to United Nations Data, If we analysis unemployment problemyearly, we will see that it is increasing day by day. In 1996 unemployment ratewas 35.20%, then in 2001 it was 35%, in 2002 it came into 40% and in 2004 itwas same.Problems Created by Unemployment:  Poverty: High number of unemployed members of the country is one of the prime reasons of poverty. These workers are either jobless or underpaid. Population below poverty line 36.3%(2008 est.) is a massive number to cope with a nation with a population of 142.3 million (census15/03/2011 result). As poverty on the rise, the
  7. 7. Unemployment Problem in Bangladesh government under debt there is rarely any opportunities of new jobs. So this process gets bad to worse by time.  Law & Order: Unemployed members of the society are often drawn to crimes to earn living. When a man finds no means to feed himself, in desperation they move to illegal way to earn.70% crime rate can be reduced by only giving them legal way to earn their living. Increase in crime rate is proportional to unemployment rate.  Urban Overpopulation: Lower development & work activities effects in rural-urban migration in Bangladesh, influences moving to a large city is found to be determined by the urban bias in planning both by national and international authorities, and by the public amenities and resources available in the urban areas. An analysis of the levels and trends in urbanization reveals the notable role of rural-urban migration in the rapid growth of the urban population. Most migrants are young, unmarried males of working age. A case study of migrants in Dhaka City illustrates the reasons for and consequences of migration. It is concluded that rural-urban migration is mainly a survival strategy of the rural unemployment.  Gross Domestic Product (GDP) Rate decrease: GDP - real growth rate Bangladesh is 5.8% (2010est.) Bangladesh, considered as a developing economy with GDP such low compared to other developing nations. Economic progress has all along been unsatisfactory and a high unemployment rate does not help to change the GDP progress more.  Lower Standard of Living: Poverty along with unemployment holds back the nation’s economy and does not allow improving life standards. The unemployed population can hardly manage a full meal a day, let alone other facilities.
  8. 8. Unemployment Problem in Bangladesh  Burden to the Nation: The unemployed population is a burden itself to the nation and its government. They can neither improve their own life nor can they help the nation to progress. The nation has to suffer for this huge inactive population & they hold back the economic progress.Our Government’s Policy: The government has several projects to increaseemployment among the mass. The main objective of the government policyis to create self-employment by training & encouraging small business amongthe mass. Government has undertaken a high budget Youth Training Programto create trained workforce in the country. Government’s road & highwaydevelopment projects provide jobs to many. Women development ministryhas training centers for women to create self employment. Bangladesh Bureauof Manpower, Employment and Training (BMET) also work to provideworkers who want to work abroad. Ministry of Labour and Employmentsvision is to reduce unemployment & poverty through productive employment& human resource development by maintaining good industrial relation &relation development between workers & employers. Their plan is to createemployment opportunities, create semi-skilled & skilled manpower, Enhanceproductivity of Factories by creating Friendly working environment betweenworkers & Employers, Ensure welfare of workers in different industrial area &implement Labour-Laws to fix up minimum wages of labour & in severe casesensure justice through Labour Court. After massive labor unrest in2006 thegovernment formed a Minimum Wage Board including business and workerrepresentatives which in 2006 set a minimum wage equivalent to 1,662.50taka, $24 a month, up from Tk950. In 2010, following widespread laborprotests involving 100,000 workers in June, 2010, a controversial proposalwas being considered by the Board which would raise the monthly minimumto the equivalent of $50 a month, still far below worker demands of 5,000taka, $72, for entry level wages, but unacceptably high according to textile
  9. 9. Unemployment Problem in Bangladeshmanufacturers who are asking for a wage below$30. On July 28, 2010 it wasannounced that the minimum entry level wage would be increased to3,000taka, about $43.The government also believes some change is necessary. OnSeptember 21,2006, government ordered textile firms to ensure the safety ofworkers complying with international labor law.Activities of some NGO and Organizations: Activities of Some Severalprivate organizations such as The Grameen Bank, Proshika, Save the Children,Brac, ASA, WBTF, etc. are working in the country to increase employment rate.Grameen Bank founder, Dr. Younus & his microcredit scheme has earned itsreputation worldwide. Grameen Bank allows loan to the poor &helplesspeople, especially women of villages. They encourage them to invest thismoney for productive purposes. Their target is to self-employ theunemployed. They give loan for small business, buying lands, making firms,etc. Microcredit policy gives loans without through trust. This helps thosepeople who have nothing to bail & enables them make enough capital to startbusiness. The NGOs gives training to men-women & promote cottageindustries. This allows them to be self-dependent & creates more jobs. Thereare several privately run employment agencies & job sites that provide job,mostly for the educated & students.However, we have a dream to make our country free from unemploymentproblem. If we can protect this problem, we will find our dreamful country.