Unemployment Among Highly Educated Young People Stands at 29%, Skills Gap Deepens Crisis: IMF

PNN News Desk | Dhaka

An International Monetary Fund (IMF) report has presented a concerning picture of employment opportunities for highly educated young people in Bangladesh. According to the organisation, the unemployment rate among young people with higher education in the country is approximately 29 percent.

The problem extends beyond unemployment. Nearly half of workers who have completed higher education are employed in occupations where their academic qualifications and acquired skills are not being adequately utilised. The gap between the education system and labour market requirements is regarded as one of the principal reasons behind this situation.

The findings on Bangladesh’s labour market were presented in the IMF’s October 2026 report titled Regional Economic Outlook: Asia and Pacific. The report was released at a press conference at the Queen Sirikit National Convention Center in Bangkok, the capital of Thailand.

The report states that while the overall unemployment rate among young people in Bangladesh stands between 12 and 13 percent, the situation is considerably more complicated for those with higher education. Many young people remain unable to secure their desired jobs for extended periods even after obtaining university degrees. As a result, some are forced to take up employment that does not match their qualifications or training.

Discussions among experts have identified the “skills gap” as a significant aspect of Bangladesh’s employment crisis. Job seekers are falling behind in competition because the knowledge and skills acquired at educational institutions do not always correspond to the requirements of modern workplaces. Consequently, educated young people are taking longer to begin their careers, while the proper utilisation of their knowledge and abilities is also not being ensured.

According to the IMF report, nearly 50 percent of highly educated workers are employed in occupations where their academic qualifications and skills are not being fully utilised. After waiting for suitable opportunities for long periods, many are compelled to accept jobs that require comparatively lower levels of skill.

Such employment can affect workers’ personal incomes and professional advancement while also reducing economic productivity. When opportunities to apply knowledge gained through higher education are unavailable, it becomes an obstacle to making proper use of a country’s human resources.

The report also identifies the widespread presence of the informal sector as another weakness in Bangladesh’s labour market. Large numbers of people work in agriculture and various informal occupations, but many lack formal employment contracts, job security and opportunities for professional development. Consequently, employment statistics alone may not fully reflect the actual stability of the labour market or the quality of available jobs.

Bangladesh has a significant opportunity to expand employment while transforming its young population into a skilled workforce. According to the IMF’s projections, the country’s working-age population, defined as people aged 15 to 64, could increase by approximately 10 to 12 percent between 2025 and 2035.

This growth in the working-age population could create substantial opportunities for the economy. However, to realise these benefits, the country will need to generate sufficient numbers of quality jobs in manufacturing and services. It will also be essential to increase workers’ productivity and ensure that their skills are aligned with employers’ requirements.

If these opportunities are utilised effectively, the demographic advantage could contribute to economic growth. Conversely, a failure to create enough jobs for the growing working-age population could increase unemployment, uncertainty and frustration.

The rapid expansion of artificial intelligence (AI) technology is also creating new pressures on traditional employment structures. According to the IMF report, demand for new hires has declined by approximately 10 percent in Asian occupations where the impact of AI is relatively high. At the same time, demand is increasing for workers with specialised AI-related skills.

These technological changes are reshaping the types of skills required in the job market. Beyond conventional academic qualifications, the ability to use technology, solve problems, think analytically and adapt to new circumstances is becoming increasingly important.

If young people in Bangladesh cannot adapt to these changes, the existing employment crisis could become even more complex. This highlights the need to expand training programmes based on labour market demand, promote technical and technology-oriented education, and provide working professionals with more opportunities to upgrade their skills regularly.

Overall, expanding access to education alone will not be enough to reduce unemployment among highly educated young people. It is also essential to establish an effective connection between the quality of education, practical skills and employment opportunities. At the same time, creating new jobs in line with technological changes could turn Bangladesh’s growing working-age population into a major economic asset.